Encyclopedia

The attempt to record the financial effects of transactions and other events in the periods in which those transactions or events occur […]

Accrual Basis: Accounting method where revenues and expenses are recorded when they are earned or incurred, not when cash changes hands.

Accrued Expenses. If an invoice has not been received from a vendor, this is the estimated amount of money that a company owes […]

Total DEPRECIATION pertaining to an ASSET or group of assets from the time the assets were placed in services until the date […]

Mathematician employed by an insurance company to calculate PREMIUMS, RESERVES, DIVIDENDS, and insurance, PENSION, and ANNUITY rates, using risk factors obtained from […]

After a taxpayer’s basis in property is determined, it must be adjusted upward to include any additions of capital to the property […]

Gross income reduced by business and other specified expenses of individual taxpayers. The amount of adjusted gross income affects the extent to […]

A trial balance prepared after all adjusting entries have been recorded and posted to the accounts. Should have equal credit and debit […]

An accounting entry made into a subsidiary ledger called the General journal to account for a periods changes, omissions or other financial […]

National professional membership organization that represents practicing CERTIFIED PUBLIC ACCOUNTANTS (CPAs). The AICPA establishes ethical and auditing standards as well as standards […]