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Chapter 3 - The Adjusting Process

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Across
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The process of recognizing revenue
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A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses
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A deferral occurs when cash related to a future revenue or expense has been initially recorded as a liability or an asset
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The contra asset account credited when recording the depreciation of a fixed asset
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The trial balance prepared after all the adjusting entries have been posted
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The liability created by receiving revenue in advance
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Long-term or relatively permanent tangible assets such as equipment, machinery, and buildings that are used in the normal business operations and that depreciate over time
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Items such as supplies that will be used in the business in the future
Down
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The journal entries that bring the accounts up to date at the end of the accounting period
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The difference between the cost of a fixed asset and its accumulated depreciation
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The portion of the cost of a fixed asset that is recorded as an expense each year of its useful life
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An account offset against another account
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An accrual occurs when revenue has been earned or an expense has been incurred but has not been recorded