Accounting Basics

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
• None of These

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

• Assets
• Liabilities
• Owner Equity
• Equity

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

• Assets
• Liabilities
• Debt
• Owner Equity

Revenues minus expenses equals:

• Assets
• Liabilities
• Owner Equity
• Net Income

The accounting equation is

• Assets = Liabilities + Owner's Equity
• Assets = Liabilities - Owner's Equity
• Assets - Owner's Equity + Liability

Accrual concept is based on :

• matching principle
• dual aspect principle
• cost principle
• going concern concept

which category does depreciation fall under in the accounting equation?

• assets

• owners equity

• liability

• expense

• imputed expense

A balance sheet reports a business's financial

• Condition over a specific period of time

• Progress over a specific period of time

• Condition on a specific date

• Progress on a specific date

______________________ is the transfer of journalized transactions to their accounts.

• Posting
• Recording
• Updating
• Journalizing

To increase a liability account requires a

• credit
• debit