Accounting Chapter 2

An expense or a revenue that occurs before the business pays or receives cash.  Opposite of a deferral.

Accounting that records the impact of a business event as it occurs, regardless of whether the transaction affected cash.

An expense incurred but not yet paid in cash.

A revenue that has been earned but not yet received in cash.

The cumulative sum of all depreciation expense from the date of acquiring a plant asset.

An adjustment for which the business paid or received cash in advance.  Ex: Prepaid rent, prepaid insurance, and supplies.