Accounting Basics
(Word Scramble)
Harold Averkamp
CPA, MBA
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Answers on page 4
You will find an interactive version of these word scrambles on AccountingCoach.com.
1. The financial statement that is described as a “snapshot” of a AELBCNA
company’s financial position is the
sheet.
2. The method (or basis) of accounting CUCLARA
reports expenses when they are incurred (as opposed to
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 the UETOIANQ
basic accounting .
8. will cause a corporation’s Stockholders’ EEERSUVN
Equity to increase.
9. A listing of the general ledger accounts that does not include TRCAH
the account balances is the of accounts.
10. The general ledger accounts whose balances are closed at NMICEO
the end of the accounting year are the
statement accounts.
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11. The statement of cash flows reports amounts according to NOAEGTPIR
three activities: , financing, and
investing.
12. The amount of prepaid insurance that has not expired as of ESTAS
the end of the accounting period is reported as an
.
13. Property is not reported at its current market value because RECIPILPN
of the cost .
14. The -entry system means that each UELDBO
transaction will affect a minimum of two accounts and that
debits must equal credits.
15. Unearned Revenues is reported on the balance sheet as a IIIYBTALL
.
16. Under the accrual method, the account that is debited at the EEEIBRALVC
time of a sale on credit is Accounts .
17. Under the accrual method, revenues are reported on the DRAEEN
income statement when they are .
18. Under the accrual method, when a company purchases YEPBAAL
goods from a supplier on credit the company will credit
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 GRSENANI
to the corporation’s income statement is retained
.
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Answers
1. BALANCE
2. ACCRUAL
3. DEPRECIATED
4. ACCUMULATED
5. EXPENSE
6. DECREASE
7. EQUATION
8. REVENUES
9. CHART
10. INCOME
11. OPERATING
12. ASSET
13. PRINCIPLE
14. DOUBLE
15. LIABILITY
16. RECEIVABLE
17. EARNED
18. PAYABLE
19. DEPRECIATION
20. EARNINGS
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