Accounting Chapter 4
Permanent Accounts
Account that reflects activities
Unclassified Balance Sheet
An unclassified balance sheet is a balance sheet that presents a single list of assets and a single list of liabilities with no attempt to divide them into classes
Classified Balance sheet
Balance sheet that presents assets and liabilities in relevant subgroups, including current and noncurrent classifications
Current Assets
Cash and oher assets expected o be sold.
Long-Term Liabilities
Due to be pai in 1 year
Long-Term Liabilites
Due to be paid in one year
Closing Entries
Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, gain, expense, loss, and withdraw account.
Pro Forma Financial Statements
Financial statements as adjusted to reflect a projected or planned transaction.
Work Sheet
Informal document in which an accountant or auditor records the information Read more: http://www.businessdictionary.com/definition/worksheet.html#ixzz2r2fT4z2c
Temporary Accounts
Is an account that does not appear on the balance sheet; also called nominal account.
Closing Process
Necessary end of period steps to prepare accounts for closing
Operating Cycle
Normal time between pay in cash or merchandise or employee services and reciving cash from customers.
Reversing Entries
Optional entries recorded at the beginning of a new period that prepare the accounts for simplified journal entries subsequent to accrual adjusting entries.
Current Liabilities
Paid or setteld in one year
Current Ratio
Ratio used o evaluate a company's ablilty
Accounting Cycle
Recurring steps performed each accounting period, starting with analyzing transactions and continuing through the post-closing trial balance (or reversing entries).
Income Summary
Temporary account used only in he closin process
Post-closing Trial Balance
This is a trial balance prepared after the balance sheet has been drawn up, and only includes balance sheet accounts
Intangible Assets
long erm assets used o produce or sell proucts or services
Working Papers
records kept of activities involved in carrying out a project
