| A | B |
|---|
| Accrued interest income | Interest earned but not yet received. |
| Accrued revenue | Revenue earned in one fiscal period but not received until a later fiscal period. |
| Accumulated depreciation | The total amount of depreciation expense that has been recorded since the purchase of a plant asset. |
| Adjusted trial balance | A trial balance prepared after adjusting entries are posted. |
| Beginning inventory | The amount of inventory on hand at the beginning of a fiscal period. |
| Book value of a plant asset | The original cost of a plant asset minus accumulated depreciation. |
| Current assets | Cash and other assets expected to be exchanged for cash or consumed within a year. |
| Depreciation | A loss in the usefulness of a plant asset as a result of wear or obsolescence. |
| Depreciation expense | The portion of a plant asset’s cost that is transferred to an expense account in each fiscal period during that asset’s useful life. |
| Ending inventory | The actual count of merchandise at the end of a fiscal period. |
| Marginal tax rate | The tax rate associated with a tax bracket. |
| Plant assets | Physical assets that will be used for a number of years in the operation of a business. |
| Recurring entries | Transactions that are set up for automated entry in computerized accounting systems. Also called recurring transactions. |
| Salvage value | The amount that will be received for an asset at the time of its disposal. |
| Straight-line method of depreciation | Recording an equal amount of depreciation expense for a plant asset in each year of its useful life. |
| Tax bracket | Each tax rate and taxable income amount on one line of a tax table. |
| Unadjusted trial balance | A trial balance prepared before adjusting entries are posted. |
| Useful life | The period of time over which an asset contributes to the earnings of a business. |
