Create an account
_____-_____ _____ records only cash transactions - cash receipts and cash payments.
The basic defect of cash-basis accounting is that the cash basis _____ important information.
The _____-_____ _____ concept ensures that accounting information is reported at regular intervals.
The _____ _____ deals with two issues: when to record (make a journal entry); and the amount of revenue to record.
The _____ _____ includes two steps: identify all the expenses incurred during the accounting period; measure the expenses, and match expenses against the revenues earned.
To match expenses against revenues means to subtract _____ from _____ to compute net income or net loss.
Accounting adjustments fall into three basic categories: _____, _____, and _____.
Deferrals, depreciation, and accruals
_____ _____ are long-lived tangible assets, such as land, buildings, furniture, and equipment.
The _____ _____ account shows the sum of all depreciation expense from using the asset.
A _____ _____ has two distinguishing characteristics: it always has a companion account; its normal balance is opposite that of the companion account.
The net amount of a plant asset (cost minus accumulated depreciation) is called that asset's _____ _____ (of a plant asset), or carrying amount.
The term _____ _____ refers to a liability that arises from an expense that has not yet been paid.
Some businesses collect cash from customers before earning the revenue. This creates a liability called _____ _____.
Two purposes of the _____ _____ are to: measure income and update the balance sheet.
_____ _____ _____ means to prepare the accounts for the next period's transactions.
Closing the books
The _____ _____ set the revenue, expense, and dividends balances back to zero at the end of the period.
A _____ _____ _____ separates current assets from long-term assets and current liabilities from long-term liabilities.
Classified balance sheet
The _____ _____ lists the assets at the top, followed by the liabilities and stockholders' equity below.
The _____ _____ lists the assets on the left and the liabilities and stockholders' equity on the right in the same way that a T-account appears, with assets (debits) on the left and liabilities and equity (credits) on the right.
A _____-_____ _____ _____ lists all the revenues together under a heading such as Revenues, or Revenues and Gains. The expenses are listed together in a single category titled Expenses, or Expenses and Losses.
Single-step income statement
A _____-_____ ____ _____ reports a number of subtotals to highlight important relationships between revenues and expenses.
Multi-step income statement
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