Chapter 5 Vocabulary Terms

A form used to gather all data needed at the end of an accounting period to prepare financial statements.

• Contra Account

• Worksheet

• Adjusting Entries

• Book Value

Lists the asset accounts first, followed by liabilities and owner's equity.

• Contra Asset Account

• Prepaid Expenses

• Adjusting Entries

• Report Form Balance

The portion of an asset's original cost that has not depreciated yet.

• Straight-Line Depreciation

• Contra Account

• Book Value

• Adjustments

The normal balance that is opposite that of a related account.

• Contra Asset Account

• Salvage Value

• Book Value

• Contra Account

An estimate of the amount that may be received by selling or disposing of an asset at the end of its useful life.

• Straight- Line Depreciation

• Salvage Value

• Depreciation

• Book Value

Assets are listed on the LEFT, Liabilities and Owner's Equity on the right.

• Account-Form Balance Sheet

• Worksheet

• Adjusting Entries

• Report-Form Balance Sheet

Journal entries made to update accounts for previously unrecorded items.

• Book Value

• Adjusting Entries

• Account-Form Balance Sheet

• Depreciation

Items that are acquired and paid for in advance of their use.

• Depreciation

• Book Value

• Prepaid Expenses

• Adjusting Entries

The process of allocating the cost of long-term assets over their expected useful life.

• Depreciation

• Salvage Value

• Straight-Line Depreciation

• Book Value

Has a normal credit balance, opposite the normal balance of an asset account.

• Depreciation

• Contra Account

• Book Value

• Contra Asset Account