click below
click below
Normal Size Small Size show me how
Chapter 5
Term | Definition |
---|---|
Temporary Accounts | Accounts used to collect information that will be transferred to a permanent capital account at the end of the accounting period (for example, revenue, expense, and the owner's withdrawals account) |
Permanent Accounts | Accounts that are continuous from one accounting period to the next; balances are carried forward to the next period (for example, assets, liabilities, and the owners capital account) |
Revenue Recognition | The GAAP principle that revenue is recorded on the date it is earned even if cash has not been recieved |