Chapter 9 Key Concepts

Question	Answer
Accounting Cycle	A series of accounting activities that a business performs each accounting period. One month, one quarter, or one year.
Chart of Accounts	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	Also an unadjusted trial balance because it is prepared before adjustments. Lists each account and the account balance at the end of the accoutning period
Adjustments	Any necessary adjustments are made at the end of the accounting period before preparing financial statements
Adjusted Trial Balance	Done to verify that the accounting system still balances.
Financial Statements	Prepares for external users. (Profit and Loss, Balance Sheet, and Statement of Cash Flows)
Adjusting Entries	Necessary to bring accounts up to date at the end of an accounting period
Prepaid Items	Items that are payed in advance, prepaid insurance or prepaid rent
Unearned Items	Items a customer has paid for, but have not been provided with yet
Accrued Expenses	Incurred expenses that have yet to be paid
Accrued Revenues	Earned revenues that have not been collected or recorded

Resource summary

	Created by Tayler Shellhase over 1 year ago