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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 AELBCNA | Unscramble |
| 2. The __________ method (or basis) of accounting reports expenses when they are incurred (as opposed to when they are paid). | ACCRUAL CUCLARA | Unscramble |
| 3. Land is an asset that is not ____________________. | DEPRECIATED ETDPDRCAEIE | Unscramble |
| 4. An asset's book value is its cost minus its __________________ depreciation. | ACCUMULATED UDTCAMALUCE | Unscramble |
| 5. The amount of prepaid insurance that has expired in the accounting period is reported as an _____________. | EXPENSE SNEEEPX | Unscramble |
| 6. A credit entry will cause the Cash account balance to _____________. | DECREASE EEESRADC | Unscramble |
| 7. Assets = Liabilities + Stockholders’ Equity is known as the basic accounting ________________. | EQUATION UETOIANQ | Unscramble |
| 8. _____________ will cause a corporation's Stockholders' Equity to increase. | REVENUES EEERSUVN | Unscramble |
| 9. A listing of the general ledger accounts that does not include the account balances is the _________ of accounts. | CHART TRCAH | Unscramble |
| 10. The general ledger accounts whose balances are closed at the end of the accounting year are the ____________ statement accounts. | INCOME NMICEO | Unscramble |
| 11. The statement of cash flows reports amounts according to three activities: _____________, financing, and investing. | OPERATING NOAEGTPIR | Unscramble |
| 12. The amount of prepaid insurance that has not expired as of the end of the accounting period is reported as an __________. | ASSET ESTAS | Unscramble |
| 13. Property is not reported at its current market value because of the cost ____________. | PRINCIPLE RECIPILPN | Unscramble |
| 14. The _________-entry system means that each transaction will affect a minimum of two accounts and that debits must equal credits. | DOUBLE UELDBO | Unscramble |
| 15. Unearned Revenues is reported on the balance sheet as a ______________. | LIABILITY IIIYBTALL | Unscramble |
| 16. Under the accrual method, the account that is debited at the time of a sale on credit is Accounts _____________. | RECEIVABLE EEEIBRALVC | Unscramble |
| 17. Under the accrual method, revenues are reported on the income statement when they are ______________. | EARNED DRAEEN | Unscramble |
| 18. Under the accrual method, when a company purchases goods from a supplier on credit the company will credit Accounts _____________. | PAYABLE YEPBAAL | Unscramble |
| 19. This is an allocation process (not a valuation process) associated with equipment and other plant assets. | DEPRECIATION EIEIDAPCNRTO | Unscramble |
| 20. The component of stockholders' equity that serves as a link to the corporation's income statement is retained _______________. | EARNINGS GRSENANI | Unscramble |
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Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.
