Gap-fill exercise

Fill in all the gaps, then press "Check" to check your answers. Use the "Hint" button to get a free letter if an answer is giving you trouble. You can also click on the "[?]" button to get a clue. Note that you will lose points if you ask for hints or clues!
1. An is an asset created by selling products or services on credit.

2. An is a liabilty created by buying goods or services on credit.

3. The equation Assets = Liabilities + Owner's Equity is called the equation.

4. is the process of analyzing, recording and summarizing financial transactions.

5. Individuals or organizations that a business purchases goods or services from on credit are called .

6. The formal financial report that shows whether a business had a profit or loss for a period is called the .

7. Debts owed by a business are called .

8. A journal entry that has more than two entries is called a journal entry.

9. A journal is often referred to as a book of entry.

10. A listing prepared of all the accounts and their current balances is called a .

11. The left side of an account is referred to as the side.

12. The right side of an account is referred to as the t side.

13. The principle or concept states that expenses incurred in generating revenue should be associated with the revenue

14. Payments of expenses that benefit more than one accounting period are called expenses.

15. The method or basis of accounting records revenue when earned and expenses when incurred.

16. is the allocation of the cost of an asset to expense over the useful life of the asset.

17. An up to date value of inventory on hand is maintained when using the inventory method.

18. The journal is normally used to record all sales made on account (credit granted to the customer).

19. A ledger is used along with a general ledger control account to maintain individual and total amounts of customer balances.

20. All receipts of cash are normally recorded in the journal.