Accounting 113

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

assets

The financial statement the reports the assets, liabilities and stockholders' (owner's) equity at a specific date is called the _____.

balance sheet

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

chart of accounts

Assets are usually reported on the balance sheet at the _____.

cost amount

A _____ will usually cause the liability account Accounts Payable to increase.

credit

Entries to revenue accounts such as Service Revenues are usually a _____.

credit

The term _____ is associated with "right" or "right-side".

credit

When a company pays a bill, the account Cash will be _____.

credited

A _____ will usually cause an asset account to increase.

debit

Entries to expenses such as Rent Expense are usually a _____.

debit

The term _____ is associated with "left" or "left-side".

debit

When cash is received, the account cash will be _____.

debited

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

income statement

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

liabilities

Unearned Revenues is a _____ account.

liability

Revenues minus expenses equals _____.

net income

Liabilities often have the word _____ in their account title.

payable

Assets minus liabilities equals _____.

stockholders' equity or owner's equity

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

the services or goods have been delivered

Accounting entries involve a minimum of _____ accounts.

two