To see each answer, press or click on the blue "Unscramble" button. If you have difficulty answering the following questions, learn more about this topic by reading our Accounting Basics (Explanation).
1. The financial statement that is described as a "snapshot" of a company's financial position is the ______________ sheet.
BALANCE BAACENL2. The __________ method (or basis) of accounting reports expenses when they are incurred (as opposed to when they are paid).
ACCRUAL RCAUCLA4. An asset's book value is its cost minus its __________________ depreciation.
ACCUMULATED TCAAUMEUCDL5. The amount of prepaid insurance that has expired in the accounting period is reported as an _____________.
EXPENSE NEEESXP6. A credit entry will cause the Cash account balance to _____________.
DECREASE DEAEECRS7. Assets = Liabilities + Stockholders' Equity is known as the basic accounting ________________.
EQUATION TOUAQNEI8. _____________ will cause a corporation's Stockholders' Equity to increase.
REVENUES NRUEVEES9. A listing of the general ledger accounts that does not include the account balances is the _________ of accounts.
CHART ARTCH10. The general ledger accounts whose balances are closed at the end of the accounting year are the ____________ statement accounts.
INCOME CEOMIN11. The statement of cash flows reports amounts according to three activities: _____________, financing, and investing.
OPERATING TAGNEIOPR12. The amount of prepaid insurance that has not expired as of the end of the accounting period is reported as an __________.
ASSET ATESS13. Property is not reported at its current market value because of the cost ____________.
PRINCIPLE RLINICEPP14. The _________-entry system means that each transaction will affect a minimum of two accounts and that debits must equal credits.
DOUBLE DLBOUE15. Unearned Revenues is reported on the balance sheet as a ______________.
LIABILITY YTLIIBILA16. Under the accrual method, the account that is debited at the time of a sale on credit is Accounts _____________.
RECEIVABLE RBLEVCEEAI17. Under the accrual method, revenues are reported on the income statement when they are ______________.
EARNED ENRDAE18. Under the accrual method, when a company purchases goods from a supplier on credit the company will credit Accounts _____________.
PAYABLE YAPBEAL19. This is an allocation process (not a valuation process) associated with equipment and other plant assets.
DEPRECIATION CNIPEIEOARDT20. The component of stockholders' equity that serves as a link to the corporation's income statement is retained _______________.
EARNINGS SANGNIREFeatured Review
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