vocab 15 accounting

depreciation

a loss in the usefulness of a plant asset

ending inventory

actual count of merchandise at the end

accumulated depreciation

amount of depreciation expense that has been recorded

beginning inventory

amount of inventory on hand at the begining

current assets

cash and other assets expected to be exchanged for cash

tax bracket

each tax rate and taxable income

accrued interest income

interest earned but not yet received

book value of plan asset

original cost of plan asset minus accumulated depreciation

useful life

period of time over which an asset contributes to the earnings of a business

plant assets

physical assets used for years

depreciation expense

portion of a plant assets cost that is transferred to an expense account

unadjusted trial balance

prepared before adjusting entires

straight-line method of depreciation

recording equal amount of depreciation expense for a plant asset

accrued revenue

revenue earned but not yet received

marginal tax rate

tax rate associated with tax bracket

salvage value

the amount that will be received for an assets at the time of its disposal

recurring entires

transactions that are set up for automated entry in computerized accounting systems

adjusted trial balance

trial balance prepared after adjusting