Classified Balance Sheet
a balance sheet that contains a number of standard classifications or sections
Closing Entries
entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent owner's equity account, Owner's Capital
Correcting Entries
entries to correct errors made in recording transactions
Current Assets
assets that a company expects to convert to cash or use up within one year
Current Liabilities
obligations that a company expects to pay from existing current assets within the coming year
Income Summary
a temporary account used in closing revenue and expense accounts
Intangible Assets
noncurrent assets that do not have physical substance
Liquidity
the ability of a company to pay obligations expected to be due within the next year
Long-Term Investments
Generally, investments in stocks and bonds of other companies that companies normally hold for many years. Also includes long-term assets, such as land and buildings, not currently being used in operations.
Long-Term Liabilities
obligations that a company expects to pay after one year
Operating Cycle
the average time that it takes to go from cash to cash in producing revenues
Permanent (real) Accounts
Accounts that relate to one or more accounting periods. Consist of all balance sheet accounts. Balance are carried forward to next accounting period
Post-Closing Trial Balance
a list of permanent accounts and their balances after a company has journalized and posted closing entries
Property, Plant, and Equipment
assets with relatively long useful lives, currently being used in operations
Reversing Entry
an entry, made at the beginning of the next accounting period, that is the exact opposite of the adjusting entry made in the previous period
Stockholders' Equity
The ownership claim of shareholders on total assets. It is to a corporation what owner's equity is to a proprietorship
Temporary (nominal) Accounts
Accounts that relate only to a given accounting period. Consist of all income statement accounts and owner's drawing account. All temporary acounts are closed at end of accounting period
Worksheet
a multiple-column form that may be used in making adjusting entries and in preparing financial statements