An accountant does not record financial transactions involving a company's investors or shareholders in a

trading profit and loss account because those ................. are not revenues or expenses.

The ................. of accounts is a listing of the accounts that are reflected in the financial statements.

Assets are divided into three categories: Current Assets, Fixed Assets, and ................. Assets.

Assets are often listed in the order of their .................

- which means how easy it would be to convert each

asset into cash.

If the assets of a company are greater than its liabilities, then the equity of the business is the positive

................. between the two numbers.

Liabilities are ................. or others stemming from goods or services received by the company.

The income statement is an essential part of the financial statements that a/an ................. releases.

When the company borrows money from its bank, the company's assets increase and the company's

................. increase.

If the company runs a radio advertisement and agrees to pay later, the company will incur a/an .................

that will reduce owner's equity and has increased its liabilities.

It is an instant photograph that displays the company's financial ................. at the end of a business

month, quarter or year.

The profit and loss account, called the ................. statement in the US, is one of the financial statements

of a company and shows the profit or loss a company during a period of time.

The profit and loss account should help investors and ................. determine the past financial

performance of the enterprise, predict future performance and assess the capability of generating future cash

flows.

The statement of income and expenses reports the company's income and expenses for the time period. It

is also called a .................and loss statement.

The Income Statement is a direct result of the information that is recorded in the journals and .................,

and then transformed into concise, compiled revenue and expense figures.

The income statement is used by management within the company, but also by investors and creditors

outside the company to evaluate ................. and aid in the assessment of risk for the investor or creditor

Current assets will likely be turned into cash or converted into a(n) ................. within a year.

The statement of cash flows shows the firm’s cash inflows and outflows from operation as well as from

its investments and financial .................

A statement of cash flows is a financial statement which ................. cash transactions of a business during

a given accounting period

The financial statements that are distributed ................. of a company need to be prepared in accordance

with generally accepted accounting principles

It is a comprehensive report on a company's activities throughout the preceding year.

It is a payment made by a corporation to its shareholders, usually as a distribution of profits.

It represents the net worth of a company i.e. what is left after all debts have been paid.

An individual, group, or organization that holds one or more shares in a company, and in whose name the

share certificate is issued.

It refers to all ongoing business expenses not including or related to direct labor, direct materials or third-

party expenses that are billed directly to customers.

It is a financial benefit that is realized when the amount of revenue gained from a business activity exceeds

the expenses, costs and taxes needed to sustain the activity

Examples are trucks, automobiles, pumps, desks, typewriters, computers, and bookcases. If this is

movable, it must be accounted for with particular care.

A debtor's accounts of money he owes.

Factory labor costs that can be easily traced to individual units of product; also called touch labor

All manufacturing costs except direct materials and direct labor.

Prompt payment for goods or services in currency or by check (bills, coins and checks).

Assets representing advance payment of the expenses of future accounting periods. As time passes,

adjusting entries are made to transfer the related costs from the asset account to an expense account.

A contract granting use or occupation of property during a specified time for a specified payment.

Money added to a bank account.

It is a financial statement that shows how changes in balance sheet accounts and income

affect cash and cash equivalents, and breaks the analysis down to operating, investing and financing

activities.

It is one of the financial statements of a company and shows the company’s revenue and expenses during

a particular period.

It is the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes

paid by an employer.

It is a company's total earnings (or profit); it is calculated by taking revenues and subtracting the costs of

doing business such as depreciation, interest, taxes and other expenses.

It is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of

assets.

It is an amount owed to a creditor that is unlikely to be paid and which the creditor is not willing to take

action to collect because of various reasons, for example due to a company going into liquidation or

insolvency.

A business's assets consist of its cash investments and property (buildings, machines, and so on), and

________ (debt) - amounts of money owed by customers for goods or services purchased on credit.

Liabilities consist of all the money that a company will have to pay to someone else, such as taxes, debts,

interest and mortgage payments, as well as money owed to ________ (supply) for purchases made on credit.

Part of the profit is paid to the government in taxation, and part is retained by the company to finance

further growth, to ________ (pay) debts, to allow for future losses, and so on.

The profit and loss account shows revenue and ________ (expend). It gives figures for total sales or

turnover.

Management ________ (analysis) the financial statements and use them as a basis for allocating financial

resources.

Small business ________ (own) could keep their own books and make decisions based on the

information found there

The cost principle generally requires that the balance sheet should report long-lived assets at cost minus

accumulated ________ (depreciate).

Financial statements prepared for a period of one year are called annual financial statements and are

required to be audited by an ________ (audit).

The financial statements of some companies whose stock is not publicly traded might also be audited for

the comfort of the owners and/or ________ (lend).

Financial statements report the results of past transactions. It means that there is no ________ (assure)

that the future transactions will be similar to the past transactions.