Adjusting Entries

entries required at the end of each accounting period to update the accounts as necessary and to fully recognize, on an accrual basis, revenues and expenses for the period.

revenues that have been earned but have not yet been collected or recorded.

payments that a company makes in advance for items normally charged to expenses.

liabilities created by expenses being incurred prior to being paid or recorded.

an account used to record subtractions from a related account. also called an offset account.

a list of all real accounts and their balances after the closing process has been completed.

the procedures and methods used, including data processing equipment, to collect and report accounting data.

an entry on the right side of an account.

an entry on the left side of an account.

a system of recording transactions in a way that maintains the equality of the accounting equation: assets = liabilities + owners' equity.

exchanges of goods or services between/among two or more entities or some other event having an economic impact on a business enterprise.

an accounting record used to record all business activities for which a special journal is not maintained.

also known as a business document, it is the first record of each transaction.