10th grade Sections A B
Accounting Lab 2
Find the definition for each of the following words, and write them in the space provided. Select 6 to illustrate using PICNic or paint. Write the pronunciation of the word and a sentence.
1. Accrual (or accrual-based) accounting: The most commonly used accounting method, which reports income when earned and expenseswhen incurred, as opposed to cash basis accounting, which reports income when received and expenses when paid. http://www.investorwords.com/61/accrual_basis_accounting.html Obviously, if I want to usea common accounting method, I’m supposed to use Accural Accounting, which reports income when earned and expenses when incurred.
2. Accrued expenses: Expenses which are incurred but for which nopayment is made during an accounting period. http://www.businessdictionary.com/definition/accrued-expenses.html My Incurred expense are omitted by my accured expenses system.
3. Adjustingentries: Bookkeeping entries posted at the end of an accounting period in which they were earned. Also used to correct entries that could not be accurately made earlier.http://www.businessdictionary.com/definition/adjusting-entries.html My adjusting entries are very organized and always corrected.
4. Balance sheet: A condensed statement that shows the financial position of an entity on a specifieddate. http://www.businessdictionary.com/definition/balance-sheet.html A balance sheet condence statement that shows financial posting of my entries.
5. Book value (carrying value): Is the valueof an asset according to its balance sheet account balance. http://en.wikipedia.org/wiki/Book_value My Book Value depends on my Sheet Account.
6. Depreciation: It refers to the decrease in valueof assets and the allocation of the cost of assets to periods in which the assets are used. http://en.wikipedia.org/wiki/Depreciation Depreciation affects my assets values.