Accounting Basics

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1.	The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the
balance sheet              income statement              statement of cash flows

2.	The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the
balance sheet              income statement              statement of cash flows

3.	Under the accrual basis of accounting, revenues are reported in the accounting period when the
cash is received              service or goods have been delivered

4.	Under the accrual basis of accounting, expenses are reported in the accounting period when the
cash is paid              expense matches the revenues or is used up

5.	Revenues minus expenses equals _______  ________________.

6.	Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________________.

7.	Assets are usually reported on the balance sheet at which amount?
cost              current market value              expected selling price

8.	Obligations (amounts owed) are reported on the balance sheet and are referred to as ________________.

9.	Liabilities often have the word ________________ in their account title.

10.	Unearned Revenues is what type of account?
Asset              Liability              Stockholders' (Owner's) Equity

11.	Accounting entries involve a minimum of how many accounts?
one              two              three

12.	The listing of all of the accounts available for use in a company's accounting system is known as the _____________  ___  _______________.

13.	Assets minus liabilities equals ______________________  _____________.

14.	Which term is associated with "left" or "left-side"?	Debit	Credit
15.	Which term is associated with "right" or "right-side"?	Debit	Credit
16.	When cash is received, the account Cash will be	Debited	Credited
17.	When a company pays a bill, the account Cash will be	Debited	Credited
18.	What will usually cause an asset account to increase?	Debit	Credit
19.	What will usually cause the liability account Accounts Payable to increase?	Debit	Credit
20.	Entries to expenses such as Rent Expense are usually	Debits	Credits
21.	Entries to revenues accounts such as Service Revenues are usually	Debits	Credits

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