Accounting Chapter 2

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  1. Accrual
    An expense or a revenue that occurs before the business pays or receives cash.  Opposite of a deferral.
  2. Accrual Accounting
    Accounting that records the impact of a business event as it occurs, regardless of whether the transaction affected cash.
  3. Accrued Expense
    An expense incurred but not yet paid in cash.
  4. Accrued revenue
    A revenue that has been earned but not yet received in cash.
  5. Accumulated depreciation
    The cumulative sum of all depreciation expense from the date of acquiring a plant asset.
  6. Deferral
    An adjustment for which the business paid or received cash in advance.  Ex: Prepaid rent, prepaid insurance, and supplies.
Card Set
Accounting Chapter 2
Chapter 2
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