Financial Reporting

Revenue earned before billing or cash receipt, usually recorded as an asset until invoiced or collected.

Contra-asset balance showing the total depreciation recorded against a depreciable asset since acquisition.

Trial balance prepared after adjusting entries so statement preparation starts from period-correct balances.

Period-end journal entry used to align revenues, expenses, assets, and liabilities with the correct reporting period.

Systematic allocation of an intangible asset's cost over the periods expected to receive its benefit.

Uncollectible receivable amount that must be recognized as expense directly or absorbed through an existing allowance estimate.

Statement showing assets, liabilities, and equity at a specific date so readers can assess financial position and capital structure.

Amount at which an asset or liability is reported on the balance sheet after the relevant accounting adjustments.

Statement grouping cash inflows and outflows into operating, investing, and financing activities for a reporting period.

Financial statement that explains how equity balances changed during the reporting period.

End-of-period entry that transfers temporary-account balances and resets revenue and expense accounts for the next period.

Liability created when a business receives cash before it has earned the related revenue.

Future tax effect of temporary differences between accounting amounts and tax amounts recognized under the relevant framework.

Systematic allocation of a tangible asset's cost over the periods expected to benefit from its use.

Inventory cost-flow assumption that assigns the oldest recorded costs to units sold first.

Primary financial-reporting framework used in the United States for recognition, measurement, presentation, and disclosure.

International financial-reporting framework used in many jurisdictions outside the United States.

Reduction of an asset's carrying amount when recorded value is no longer supported by recoverable or expected economic benefit.

Statement summarizing revenue, expenses, gains, and losses over a period to show whether operations produced profit or loss.

Accrual-accounting principle that records expenses in the periods that benefit from or relate to the associated revenue.

Threshold concept used to judge whether an omission or misstatement could influence the decisions of financial-statement users.

Long-lived tangible operating assets such as land, buildings, machinery, and equipment used across multiple periods.

Rules and judgments used to decide when revenue should be recorded in the accounts and statements.

Use of statements, ratios, and trend review to interpret a business's profitability, liquidity, leverage, and operating quality.

Inventory-costing method that assigns an average cost to units available for sale rather than separating old and new layers.

Partial reduction of an asset's carrying amount when the recorded amount is no longer fully supportable.