Accounting Basics

Front

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

Back

Income Statement

Front

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

Back

Assets

Front

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

Back

Liabilities

Front

Revenues minus expenses equals:

Back

Net Income

Front

The accounting equation is

Back

Assets = Liabilities + Owner's Equity

Front

Accrual concept is based on: matching principle, dual aspect principle, cost principle, going concern concept

Back

matching principle

Front

which category does depreciation fall under in the accounting equation?

Back

imputed expense

Front

A balance sheet reports a business's financial

Back

Condition on a specific date

Front

______________________ is the transfer of journalized transactions to their accounts.

Back

Posting

Front

To increase a liability account requires a

Back

credit