Account form balance sheet (p. 138)
A balance sheet that lists assets on the left and liabilities and owner’s equity on the right (see also Report form balance sheet).
Adjusting entries (p. 127)
Journal entries made to update accounts for items that were not recorded during the account period.
Book value (p. 131)
That portion of an asset’s original cost that has not yet been depreciated.
Contra account (p. 130)
An account with a normal balance that is opposite that of a related account.
Contra asset account (p. 130)
An asset account with a credit balance, which is contrary to the normal balance of an asset account.
Depreciation (p. 130)
Allocation of the cost of a long-term asset to operations during its expected useful life.
Prepaid expenses (p. 128)
Expense items acquired, recorded, and paid for in advance of their use.
Report form balance sheet (p. 138)
A balance sheet that lists the asset accounts first, followed by liabilities and owner’s equity.
Salvage value (p. 130)
An estimate of the amount that could be received by selling or disposing of an asset at the end of its useful life.
Straight-line depreciation (p. 130)
Allocation of an asset’s cost in equal amounts to each accounting period of the asset’s useful life.
Worksheet (p. 126)
A form used to gather all data needed at the end of an accounting period to prepare financial statements.
