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Basic Accounting Reviewer (Random Review) : Alcnbae

The financial statement that provides a snapshot of a company's financial position is the balance sheet. The accrual method reports expenses when they are incurred rather than when they are paid. Land is an asset that is not depreciated. An asset's book value is its cost minus its accumulated depreciation. The amount of expired prepaid insurance in an accounting period is reported as an expense.

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87 views3 pages

Basic Accounting Reviewer (Random Review) : Alcnbae

The financial statement that provides a snapshot of a company's financial position is the balance sheet. The accrual method reports expenses when they are incurred rather than when they are paid. Land is an asset that is not depreciated. An asset's book value is its cost minus its accumulated depreciation. The amount of expired prepaid insurance in an accounting period is reported as an expense.

Uploaded by

Lileth Viduya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Page |7

BASIC ACCOUNTING REVIEWER


(RANDOM REVIEW)
Part 3

1. The financial statement that is described as a "snapshot"


of a company’s financial position is the ______________ ALCNBAE
sheet.

2. The __________ method (or basis) of accounting


reports expenses when they are incurred (as opposed to CUCLARA
when they are paid).

3. Land is an asset that is not ____________________. ETDPDRCAEIE

4. An asset's book value is its cost minus its


UDTCAMALUCE
__________________ depreciation.

5. The amount of prepaid insurance that has expired in the


SNEEEPX
accounting period is reported as an _____________.

6. A credit entry will cause the Cash account balance to


EEESRADC
_____________.

7. Assets = Liabilities + Stockholders’ Equity is known as


UETOIANQ
the basic accounting ________________.
Page |8

8. _____________ will cause a corporation's Stockholders'


EEERSUVN
Equity to increase.

9. A listing of the general ledger accounts that does not


include the account balances is the _________ of TRCAH
accounts.

10. The general ledger accounts whose balances are closed


at the end of the accounting year are the ____________ NMICEO
statement accounts.

11. The statement of cash flows reports amounts according


to three activities: _____________, financing, and NOAEGTPIR
investing.

12. The amount of prepaid insurance that has not expired


as of the end of the accounting period is reported as an ESTAS
__________.

13. Property is not reported at its current market value


RECIPILPN
because of the cost ____________.

14. The _________-entry system means that each


transaction will affect a minimum of two accounts and that UELDBO
debits must equal credits.

15. Unearned Revenues is reported on the balance sheet as


IIIYBTALL
a ______________.
Page |9

16. Under the accrual method, the account that is debited


EEEIBRALVC
at the time of a sale on credit is Accounts _____________.

17. Under the accrual method, revenues are reported on


DRAEEN
the income statement when they are ______________.

18. Under the accrual method, when a company purchases


goods from a supplier on credit the company will credit YEPBAAL
Accounts _____________.

19. This is an allocation process (not a valuation process)


EIEIDAPCNRTO
associated with equipment and other plant assets.

20. The component of stockholders' equity that serves as a


link to the corporation's income statement is retained GRSENANI
_______________.

>>THE END<<
------------------------------------------------------------------------------------------------------
ANSWERS:
1. BALANCE 6. DECREASE 11. OPERATING 16. RECEIVABLE
2. ACCRUAL 7. EQUATION 12. ASSET 17. EARNED
3. DEPRECIATED 8. REVENUES 13. PRINCIPLE 18. PAYABLE
4. ACCUMULATED 9. CHART 14. DOUBLE 19. DEPRECIATION
5. EXPENSE 10. INCOME 15. LIABILITY 20. EARNINGS

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