Accounting Basics (Word Scramble)

1. The financial statement that is described as a "snapshot" of a company's financial position is the ______________ sheet.

2. The __________ method (or basis) of accounting reports expenses when they are incurred (as opposed to when they are paid).

3. Land is an asset that is not ____________________.

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

5. The amount of prepaid insurance that has expired in the accounting period is reported as an _____________.

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

7. Assets = Liabilities + Stockholders' Equity is known as the basic accounting ________________.

8. _____________ will cause a corporation's Stockholders' Equity to increase.

9. A listing of the general ledger accounts that does not include the account balances is the _________ of accounts.

10. The general ledger accounts whose balances are closed at the end of the accounting year are the ____________ statement accounts.

11. The statement of cash flows reports amounts according to three activities: _____________, financing, and investing.

12. The amount of prepaid insurance that has not expired as of the end of the accounting period is reported as an __________.

13. Property is not reported at its current market value because of the cost ____________.

14. The _________-entry system means that each 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 ______________.

16. Under the accrual method, the account that is debited at the time of a sale on credit is Accounts _____________.

17. Under the accrual method, revenues are reported on 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 Accounts _____________.

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