| A | B |
|---|
| Balance Day Adjustment | a change made to a revenue or expense item on balance day so that profit is calculated by comparing revenues earned and expenses incurred in the current reporting period |
| Prepaid Expense | an expense that has been paid but is yet to be consumed |
| Accrued expense | an expense that has been incurred but not yet paid |
| Finite life | the limited period of time (usually measured in years) for which a non-current asset will exist |
| Depreciable Asset | a non-current asset which has a finite life, an dthus must be depreciated over that life |
| Depreciation | the allocation of the cost of a non-current asset over its useful life |
| Depreciation Expense | that part of the cost/value of a non-current asset which has been consumed in the current reporting period |
| Accumulated Depreciation | the value of a non-current asset that has been consumed over its life so far |
| Carrying Value | the value of a non-current asset that is yet to be consumed/allocated as an expense, plus any residual value ( Carrying value = Historical Cost - Accumulated Depreciation) |
