Basic Bookkeeping and Accounting Concepts
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1. Revenues minus Expenses equals  _______ ________________.

2. Assets minus Liabilities equals  ________________ ________________.

3. The double entry bookkeeping system records at least one  ________________ and one ________________ for each transaction.

4. The basic accounting equation, also referred to as the balance sheet equation is________________ = ________________ + ________________________________

5. The basis of accounting that records revenue when earned and expenses when incurred is called the ________________ basis of accounting.

6. The basis of accounting that records revenue when cash is received and expenses when payments are made is called the ________________ basis of accounting.

7. Net Sales minus the Cost Of Goods Sold equals  ________________ ________________.

8. The listing of accounts used by a business to record and categorize their financial transactions is called the ________________  of ________________.

9. The chart of accounts is usually presented using two major account categories or groupings________________________________  accounts  and________________________________ accounts.

10. A journal is sometimes referred to as a book of ________________ ________________.

11. An  ________________ ________________ is a formal financial statement that aids users in assessing a business's profitability.

12. The  ________________ ________________ is the book or file that contains the summarized activity and balances of all of a business's accounts.

13. The individual balances or amounts that a customer owes a business are maintained in a recordcalled the Accounts Receivable  ________________ ________________.

14. The Accounts Receivable ledger account reflects the total amount that a business's customers owe and isa special type of account called a  ________________ Account that is used along with the Accounts Receivable Subsidiary Ledger to monitor and control the balances owed by customers to a business.

15. Amounts that a business owes to its suppliers are called ________________ ________________.

16. The excess of expenses over revenues for a period is called a  ________________.

17. An  ________________  is used to record and summarize the increases and decreases in each type of asset, liability, equity, revenue and expense item.

18. A journal entry in which more than two accounts are involved is called a  ________________  journal entry.

19. A listing of all the accounts and their respective balances that is used as an aid forpreparing the formal financial statements is called a  ________________  ________________.

20. The owner's capital account balance will increase as a result of additional ________________  and________________.

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