Answer:
A. Fiscal year: A twelve month accounting period.
H. Prepaid expenses: Expenses paid before they are incurred.
G. Book value: Cost less accumulated depreciation.
M. Time period assumption: Divides the economic life of a business into artificial time periods.
F. Accumulated depreciation: A contra asset account
C. Revenue recognition principle: Recognition of revenue when the performance obligation is satisfied.
J. Accrued revenues: Revenues recognized but not yet received.
E. Accrued expenses: Expenses incurred but not yet paid.
L. Depreciation: A cost allocation process.
I. Worksheet: An optional tool which facilitates the preparation of financial statements.
B. Income Summary: A temporary account used in the closing process.
O. Permanent accounts: Balance sheet accounts whose balances are carried forward to the next period.
D. Closing entries: Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders' equity account.
N. Correcting entries: Entries to correct errors made in recording transactions.
L. Reversing entry: The exact opposite of an adjusting entry made in a previous period.
