Adjusting Entries: Accrued Revenues definitions Flashcards
Adjusting Entries: Accrued Revenues definitions
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Accrued Revenues Earnings recognized before cash is received, typically from delivering goods or services on credit to customers. Accounts Receivable Asset representing amounts owed by customers who have received goods or services but have not yet paid. Asset Resource owned by a company, such as money owed by customers, that provides future economic benefit. Revenue Recognition Principle Guideline requiring revenue to be recorded when it is earned, regardless of when cash is received. Credit Sale Transaction where goods or services are provided to a customer who agrees to pay at a later date. Adjusting Entry Accounting record made at the end of a period to update account balances before preparing financial statements. Debit Accounting entry that increases assets or expenses and decreases liabilities or equity. Credit Accounting entry that increases liabilities, equity, or revenue and decreases assets or expenses. Outstanding Balance Portion of an amount owed by a customer that remains unpaid after a partial payment. Accrual Accounting Method where transactions are recorded when they occur, not when cash is exchanged. On Account Term indicating a transaction where payment is deferred and will be made at a future date. IOU Informal reference to an amount owed by a customer, reflected as an asset until payment is received. Partial Payment Situation where a customer pays only a portion of the total amount owed, leaving a remaining balance.
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