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Income Statement Accounts
Accounts that are used to prepare the income statement, summarizing a company's revenues, expenses, and profits over a period.
Deferrals
Income or expenses that have been recorded but not yet earned or used, respectively, affecting future accounting periods.
Recognition
The process of recording an item or event in financial statements once it meets the criteria for financial reporting as defined by accounting standards.
Matching Principle
An accounting principle that requires companies to report expenses at the same time as the revenues they are related to are earned.
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