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ACC 231, Chapter 3

Across
A list of all the accounts in the general ledger with their balances after the adjusting entries are posted
Obligations that are due to be settled within one year or the operating cycle, whichever is longer
The type of account a company usually debits when making an adjusting entry for a prepaid expense
This type of balance sheet shows categories of assets and liabilities
The number of basic financial statements a company must prepare
This is subtracted from the cost of a plant asset to determine its book value
An accounting period of 12 months from January 1 through December 31
The type of account a company usually credits when making an adjusting entry for a prepaid expense
The balance a temporary account will have after a company closes it
Operating costs a company incurs in one accounting period but pays in the next accounting period
Current assets divided by current liabilities
Cash basis accounting is NOT consistent with _____
Another name for unearned revenues
Down
This method of accounting recognizes revenues when earned and expenses when incurred
Recording adjusting journal entries is the _____ step in the adjusting process
The account debited to record accrued service revenue
The recording of an accrued expense includes a credit to this type of account
An account, such as Accumulated Depreciation, which is linked to another account
The steps involved in preparing the financial statements
This accounting principle requires that expenses be recognized in the same time period when the company recognizes the related revenues
The only plant asset that is NOT subject to depreciation
The owner's claim on the assets