TLE 9 Accounting

prepared at the end of an accounting period by adding up all the account balances in your general ledger. The debit balances should equal the credit balances.

• depreciation

• accounts payable

• journal

• trial balance

Amounts you have paid in advance to a vendor or creditor for goods or services. A __________ is actually an asset of your business because your vendor or supplier owes you the goods or services.

• prepaid insurance

• prepaid rent

• prepaid expense

• prepaid income

Also called ___________, it represents money you have received in advance of providing a service to your customer. Prepaid income is actually a liability of your business because you still owe the service to the customer.

• prepaid insurance

• prepaid rent

• prepaid income

• prepaid accounts payable

Fixed assets are generally inconvertible to cash within a year. What is NOT a fixed asset among these choices:

• Equipment

• Vehicles

• Accounts Receivable

Money invested in the business by the owner/s

• Capital

• Assets

• Liabilities

• Income

the bills your business owes to suppliers

• Prepaid Expense

• Accounts Receivable

• Accounts Payable

• Rent

Special accounting entries that must be made when you close the books at the end of an accounting period

• Adjusting Journal

• Adjusting Ledger

• Adjusting Books

• Adjusting Entries

An estimate of uncollectable customer accounts, a reduction of accounts receivable

• Allowance for Accounts Receivable

• Accumulated Depreciation

• Depreciation Expense

• Allowance for Doubtful Accounts/ Bad Debts

the amounts owed to you by your customers

• Accounts Payable

• Accounts Receivable

Which account titles have a normal balance of DEBIT

• Sales Revenue

• Prepaid Insurance

• Rent

• Drawing