Accounting & Bookkeeping Common Terms Quiz
1. The financial statement that summarizes a company's assets, liabilities, and owner's equity at a specific point in time is the ______________.
2. An economic resource that is expected to provide a future benefit to the company is called an ______________.
3. Obligations of a company to outside parties are known as ______________.
4. The residual interest in the assets of the entity after deducting its liabilities is called ______________.
5. The financial statement that reports a company's revenues, expenses, and net income or loss over a period of time is the ______________.
6. The money a company earns from its normal business activities is referred to as ______________.
7. The costs incurred by a business to generate revenue are known as ______________.
8. When total revenues exceed total expenses, the result is a ______________.
9. When total expenses exceed total revenues, the result is a ______________.
10. The system of recording financial transactions in at least two accounts is called ______________ entry bookkeeping.
11. An individual record in an accounting system that summarizes increases and decreases in a specific asset, liability, equity, revenue, or expense is called an ______________.
12. A payment made by a business for goods or services is typically recorded as an ______________.
13. Money owed to a company by its customers for goods or services delivered on credit is called ______________ receivables.
14. Money a company owes to its suppliers for goods or services purchased on credit is called ______________ payables.
15. The original record of a transaction, such as an invoice, receipt, or check stub, is known as a ______________ document.
16. The process of recording transactions in chronological order is called ______________.
17. The general ledger account that shows the accumulated cost of an asset minus its accumulated depreciation is its ______________ value.
18. The systematic allocation of the cost of a tangible asset over its useful life is known as ______________.
19. A summary of all the ledger accounts with their balances at a specific point in time is called a ______________ balance.
20. Cash and other assets expected to be converted to cash or consumed within one year are classified as ______________ assets.
21. Obligations due within one year are classified as ______________ liabilities.
22. The price paid to acquire an asset is its ______________ cost.
23. The total amount of money a business takes in from sales before deducting any expenses is called ______________ revenue.
24. The difference between the cost of goods sold and net sales is known as ______________ profit.
25. A detailed list of all the accounts in a company's general ledger is called the ______________ of accounts.
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1. Balance Sheet
2. Asset
3. Liabilities
4. Owner's Equity (or Equity)
5. Income Statement (or Profit and Loss Statement)
6. Revenue
7. Expenses
8. Net Income (or Profit)
9. Net Loss
10. Double
11. Account
12. Expense
13. Accounts
14. Accounts
15. Source
16. Journalizing
17. Book
18. Depreciation
19. Trial
20. Current
21. Current
22. Historical
23. Gross
24. Gross
25. Chart