A method of depreciation in which a greater amount of depreciation expense is recorded in the earlier years of an assets useful life than in later years.

 A customer’s or client’s promise to pay for goods or services provided.

 Sub-categories of assets, liabilities, equity, revenue and expense.

 A firm’s promise to pay a vendor for goods or services provided.

 The recognition of revenue when earned and expenses when incurred as distinguished from the cash basis of accounting.

 The contra asset account that reflects depreciation expense taken in the current and previous periods.

 A schedule that classifies accounts receivable by the amount of days the receivable has been unpaid. 

 Tangible or intangible things that allow a firm to produce goods or services.

 A set of tests and procedures applied by an independent accounting firm to determine the accuracy of financial statement information.

 One of the basic financial statements that is used to asses the financial condition of a company. It lists the assets, liabilities and equity of the firm at the end of the accounting period.