The following is a list of terms and phrases discussed in the chapter. 

1. Contra asset account 

2. Permanent accounts 

3. Depreciation 

4. Adjusting entries 

5. Prepaid expenses (prepayments) 

6. Temporary accounts 

7. Book value 

8. Adjusted trial balance 

9. Closing entries 

10. Earnings management 

11. Income Summary 

Instructions Match each term or phrase with its description below. 

a. ________ Expenses paid in cash before they are used or consumed. 

b. ________ The difference between the cost of a depreciable asset and its related accumulated depreciation. 

c. ________ A list of accounts and their balances after all adjustments have been made. 

d. ________ Entries made at the end of an accounting period to ensure that the revenue recognition and expense recognition principles are followed. 

e. ________ Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders’ equity account, Retained Earnings. 

f. ________ Revenue, expense, and dividend accounts whose balances a company transfers to Retained Earnings at the end of an accounting period. 

g. ________ The planned timing of revenues, expenses, gains, and losses to smooth out bumps in net income. 

h. ________ An account that is off set against an asset account on the balance sheet. 

i. ________ A temporary account used in closing revenue and expense accounts. 

j. ________ Balance sheet accounts whose balances are carried forward to the next accounting period. 

k. ________ The process of allocating the cost of an asset to expense over its useful life.