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Chapter 3A

Across
Long-lived assets, such as land, buildings, and equipment, used in the operation of the business. Also called fixed assets
The basis for recording revenues; a principle that tells accountants when to record revenue and the amount of revenue to record.
A liability created when a business collects cash from customers in advance of earning the revenue. The obligation is to provide a product or a service in the future.
Revenue and expense accounts that relate to a limited period and are closed at the end of the period. For a corporation, the Dividends account is also temporary.
Accounting that records the impact of a business event as it occurs, regardless of whether the transaction affected cash.
A revenue that has been earned but not yet received in cash.
A category of miscellaneous assets that typically expire or get used up in the near future. Examples include prepaid rent, prepaid insurance, and supplies.
The allocation of the cost of a long-term plant asset to expense over its useful life.
An expense incurred but not yet paid in cash.
An adjustment for which a business paid or received cash in advance. Examples include prepaid rent, prepaid insurance, and supplies.
Down
Asset, liability, and stockholders' equity accounts that are not closed at the end of the period.
A concept that ensures that accounting information is reported at regular intervals.
The process of preparing the accounts to begin recording the next period's transactions. Closing the books consists of journalizing and posting the closing entries to set the balances of the revenue, expense, and dividends accounts to zero. Also called closing the accounts.
An expense or a revenue that occurs before the business pays or receives cash. An accrual is the opposite of a deferral.