Accruals, Deferrals, and the Worksheet FLASHCARDS

Accrual basis A system of accounting by which all revenues and expenses are matched and reported on financial statements for the applicable period, regardless of when the cash related to the transaction is received or paid Accrual basis

Accrued expenses Expense items that relate to the current period but have not yet been paid and do not yet appear in the accounting records Accrued expenses

Accrued income Income that has been earned but not yet received and recorded Accrued income

Deferred expenses Expenses that are paid for and recorded before they are used, such as rent or insurance Deferred expenses

Deferred income Income received before it is earned Deferred income

For additional reinforcement of accounting terms, visit the crossword puzzle on this Web site.