accounting pre-test #4

Asset

(n.) something of value; a resource; an advantage

Credits

Entries to revenues accounts such as Service Revenues are usually

Debited

When cash is received, the account cash will be

Debit

what will usually cause an asset account to increase?

Credit

what will usually cause the liability account Accounts Payable to increase

Income Statement

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

Two

Accounting entries invlove a minimum of how many accounts

Cost

Assets are usually reported on the balance sheet at which amount?

Debit

Entries to expenses such as Rent Expense are usually

Payable

Liabilities often have the word __________ in their account title

Liabilities

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

Assets

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

Net income

Revenues minus expenses equals

Balance Sheet

The financial statement that reports the assets, liabilities and stockholder's (owner's)equity at a specific date is the

Chart of Accounts

The listing of all of the accounts available for use in a company's accounting system is known as

Expense Matches The Revenues Or Is Used Up

Under the accrual basis of accounting, expenses are reported in the accounting period when the

Service Or Goods Have Been Delivered

Under the accrual basis of accounting, revenues are reported in the accounting period when the

Liability -The company that is to perform the service or is to deliver the product has received the cash in advance and therefore has an obligation (liability) to deliver the service or the product.

Unearned revenues is what type of account

Credited

When a company pays a bill, the account cash will be

Debit

Which term is associated with "left" or "left-side"?

Credit

Which term is associated with "right" or "right-side"?

Debtors

person or country that owes money

Statement of Retained Earnings

reports how the company's retained earnings balance changed from the beginning to the end of the period; shows how much money that a company made was retained and reinvested in the company

Internal Controls

rules and regulations that are put into place to guard the assets owned by a person or a company.