HW 3 ACC 231 study guide verified to pass 2025/2026

HW 3 ACC 231 study guide verified to
pass 2025/2026
Accrual Accounting - correct answer ✔Records the impact of a business event as it occurs, regardless of
whether the transaction affected cash.



Fiscal Year - correct answer ✔Any consecutive 12 month period



Matching principle - correct answer ✔Records expenses when incurred to sell goods or provide
services



Revenue recognition principle - correct answer ✔Records revenue when it is earned



Accumulated depreciation - correct answer ✔the cumulative sum of all depreciation expense from the
date of acquiring a plant asset



Adjusted trial balance - correct answer ✔A list of accounts with their adjusted balances



Adjusting entry - correct answer ✔Entry made to assign revenues to the period in which they are
earned and expenses to the period incurred



Book value - correct answer ✔The asset's cost less its accumulated depreciation



Contra-account - correct answer ✔An account whose normal balance is opposite of its companion
account



Depreciation - correct answer ✔The allocation of a long term asset's cost to expense over its useful life