9 terms

Chapter 3

A broad principle/assumption that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the:
Time period assumption
Adjusting entries are journal entries made at the end of an accounting period for the purpose of:
1. Updating liability and asset accounts to their proper balances.
2. Assigning revenues to the periods in which they are earned.
3. Assigning expenses to the periods in which they are incurred.
4. Assuring that financial statements reflect the revenues earned and the expenses incurred.
An adjusting entry could be made for each of these:
1. Depreciation
2. Prepaid Expenses
3. Unearned Revenues
4. Accrued Revenues
An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a:
Contra Account
Prepaid Journal Entry:
Supplies Journal Entry:
Accrued Salaries Journal Entry:
Salaries expense
Salaries payable
Unearned Revenue Journal Entry:
Unearned revenue
Accrued Revenue Journal Entry:
Accounts receivable