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Adjusting Entry
A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.
Contra Account
An account used in accounting to offset or reduce the balance of a related principal account.
Prepaid Expenses
Costs paid in advance for goods or services to be received in the future, which are recorded as assets until they are consumed.
Accrued Expenses
Expenses that have been incurred but not yet paid for, often recognized in the accounting period they are incurred.
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