accounting basics

7.Assets are usually reported on the balance sheet at which amount? A) Cost B) Current Market Value C) Expected

A) Cost

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

Balance sheet

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

Debit

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

Liabilities

10.Unearned Revenues is what type of account?

Liability

9. Liabilities often have the word __________ in their account title.

Payable

18.What will usually cause an asset account to increase? (debit or credit)

debit

13. Assets minus liabilities equals __________.

stockholders' equity or owner's equity

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

Credit

16.When cash is received, the account Cash will be

Credit

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

Expense matches the revenues or is used up

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

Service or goods have been delivered

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

assets

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

chart of accounts

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

credit

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

income statement

5. Revenues minus expenses equals __________.

net income

11.Accounting entries involve a minimum of how many accounts?

two