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 ABAENLC2. The __________ method (or basis) of accounting reports expenses when they are incurred (as opposed to when they are paid).
ACCRUAL AURCALC4. An asset's book value is its cost minus its __________________ depreciation.
ACCUMULATED UEUTCMDAALC5. The amount of prepaid insurance that has expired in the accounting period is reported as an _____________.
EXPENSE XEPSENE6. A credit entry will cause the Cash account balance to _____________.
DECREASE CRDESEAE7. Assets = Liabilities + Stockholders' Equity is known as the basic accounting ________________.
EQUATION OEQUANIT8. _____________ will cause a corporation's Stockholders' Equity to increase.
REVENUES VNREEESU9. A listing of the general ledger accounts that does not include the account balances is the _________ of accounts.
CHART AHRCT10. The general ledger accounts whose balances are closed at the end of the accounting year are the ____________ statement accounts.
INCOME OMNIEC11. The statement of cash flows reports amounts according to three activities: _____________, financing, and investing.
OPERATING ROTAGEINP12. The amount of prepaid insurance that has not expired as of the end of the accounting period is reported as an __________.
ASSET STAES13. Property is not reported at its current market value because of the cost ____________.
PRINCIPLE PRLNEICPI14. The _________-entry system means that each transaction will affect a minimum of two accounts and that debits must equal credits.
DOUBLE LUBODE15. Unearned Revenues is reported on the balance sheet as a ______________.
LIABILITY IIYABTLLI16. Under the accrual method, the account that is debited at the time of a sale on credit is Accounts _____________.
RECEIVABLE IVERCEEBAL17. Under the accrual method, revenues are reported on the income statement when they are ______________.
EARNED NREEAD18. Under the accrual method, when a company purchases goods from a supplier on credit the company will credit Accounts _____________.
PAYABLE AAPBELY19. This is an allocation process (not a valuation process) associated with equipment and other plant assets.
DEPRECIATION IOACENPDRTEI20. The component of stockholders' equity that serves as a link to the corporation's income statement is retained _______________.
EARNINGS SRGNIEANFeatured Review
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