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