Adjustments and the Worksheet FLASHCARDS

Depreciation Allocation of the cost of a long-term asset to operations during its expected useful life Depreciation

Salvage value An estimate of the amount that could be received by selling or disposing of an asset at the end of its useful life Salvage value

Straight-line depreciation Allocation of an asset’s cost in equal amounts to each accounting period of the asset’s useful life Straight-line depreciation

Contra asset account An asset account with a credit balance, which is contrary to the normal balance of an asset account Contra asset account

Adjustments Journal entries made to update accounts for items that were not recorded during the accounting period Adjustments

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