QBO ch 9

Question	Answer
chart of accounts	a list of all accounts used to accumulate information about assets, liabilities, owners' equity, revenues, and expenses.
transactions	during the accounting period, record transactions with customers, vendors, employees, and owners
trial balance	referred to as an unadjusted trial balance because it is prepared before adjustments. Lists each account and the account balance at the end of the accounting period.
adjustments	At the end of the accounting period before preparing financial statements, make any adjustments necessary to bring the accounts up to date. Adjustments are entered in the journal using debits and credits.
adjusted trial balance	prepare an adjusted trial balance (a trial balance after adjustments) to verify that the accounting system still balances. If additional account detail is required, print the general ledger (the collection of all the accounts listing the transactions that affect the accounts).
financial statements	prepare a financial statement for external users (profit and loss, balance sheet, and statement of cash flows). Prepare income tax summary reports and management reports.
prepaid items	items that are prepaid, such as prepaid insurance or prepaid rent
unearned items	items that customer has paid us for, but we have not provided the product or service
accrued expenses	expenses that are incurred but not yet paid or recorded
accrued revenues	revenues that have been earned but not yet collected or recorded

Resource summary

	Created by Austin Egg over 1 year ago