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Flashcards in Accounting Basics Deck (15)
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1

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

Income Statement

2

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

Balance Sheet

3

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

Service or goods have been delivered

4

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

Expense matches the revenues or is used up

5

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

Cost
-this is due to the "Cost Principle"

6

Unearned Revenues is what type of account?

Liability
- because the co. still has to provide the product or service

7

Accounting entries involve a minimum of how many accounts?

Two
-because of "double-entry", every transaction will affect at least two accounts.

8

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

Debit

9

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

Credit

10

When can is received, the account Cash will be...

Debited

11

When a co. pays a bill, the account Cash will be...

Credited

12

What will usually cause an asset account to increase?

Debit

13

What will usually cause the liability account Accounts Payable to increase?

Credit

14

Entries to expenses such as Rent Expenses are usually...

Debits

15

Entries to revenues accounts such as Service Revenues are usually..

Credits