| Accounting Cycle | The process used by entities to analyze and record transactions, adjust the records at the end of the period, prepare financial statements, and prepare the records for the next cycle.
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| Accrued Expenses | Previously unrecorded expenses that need to be adjusted at the end of the accounting period to reflect the amount incurred and its related payable account.
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| Accrued Revenues | Previously unrecorded revenues that need to be adjusted at the end of the accounting period to reflect the amount earned and its related receivable account.
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| Adjusting Entries | Entries necessary at the end of the accounting period to measure all revenues and expenses of that period.
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| Closing Entries | Made at the end of the accounting period to transfer balances in temporary accounts to Retained Earnings and to establish a zero balance in each of the temporary accounts.
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| Contra-Account | An account that is an offset to, or reduction of, the primary account.
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| Deferred Expenses | Previously acquired assets that need to be adjusted at the end of the accounting period to reflect the amount of expense incurred in using the asset to generate revenue.
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| Deferred Revenues | Previously recorded liabilities that need to be adjusted at the end of the period to reflect the amount of revenue earned.
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| Net Book Value (Book Value, Carrying Value) | The acquisition cost of an asset less accumulated depreciation, depletion, or amortization.
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| Permanent (Real) Accounts | The balance sheet accounts that carry their ending balances into the next accounting period.
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| Post-Closing Trial Balance | Should be prepared as the last step in the accounting cycle to check that debits equal credits and all temporary accounts have been closed.
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| Temporary (Nominal) Accounts | Income statement (and sometimes dividends declared) accounts that are closed to Retained Earnings at the end of the accounting period.
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| Trial Balance | A list of all accounts with their balances to provide a check on the equality of the debits and credits.
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