Professional Documents
Culture Documents
I. Financial Accounting
1) Cost, full disclosure, and matching are three of the basic accounting _________.
2) The FASB is responsible for developing new accounting _____________, which
will become part of GAAP.
3) GAAP is the acronym for generally ___________ accounting principles.
4) Large companies must use the _________-basis of accounting, rather than the
cash-basis of accounting.
5) A corporation's annual report to the SEC is the Form _______-K.
6) The difference between the amounts of assets and liabilities is stockholders'
__________.
7) The balance sheet is also referred to as the statement of financial __________.
8) If a corporation's stock is _________-traded, it will have additional financial
reporting requirements.
9) Distributions of some of a corporation's net income to the stockholders.
10) The word for an entry on the right side of an account.
II.ACCOUNTING BASICS
1) The title of the asset account that reports the unexpired cost of insurance
premiums that have already been paid is _____________ Insurance.
2) The owner's equity section of a corporation's balance sheet is known as
shareholders equity or _______________________ equity.
3) The title of the liability account that reports amounts that were received by the
company before they were earned is ________________ Revenues.
4) The financial statement that reports the financial position of a company as of an
instant or point in time is the ________________ sheet.
5) The balance sheet reports amounts that apply at a particular ____________ in
time.
6) An entry to the left-side of an account.
7) This component of Property, Plant & Equipment is not depreciated.
8) The accounting guideline that prevents assets from being reported at amounts
greater than their cost is the __________ principle.
9) Sometimes inventory is reported at an amount that is __________ than cost.
10) The basis or method of accounting that is less effective than the accrual basis in
measuring profitability.
V. Adjusting Entries
1) Customer deposits for future services will be listed under which financial
statement category? (assets, liabilities, expenses, etc.)
2) The accounting principle that requires expenses to be reported on the income
statement when they occur rather than when they are paid.
3) A prepaid expense is reported as which type of account? (asset, liability, expense,
etc.)
4) Depreciation is the systematic ________________ of the cost of an asset (used in a
business) to expense over the useful life of the asset. (It is not a valuation technique.)
5) The time _________ assumption is also known as the periodicity assumption. It
means that an ongoing business can be divided into years, quarters, months, etc.
6) On December 1 a company purchased $700 of supplies—approximately a three-
month supply. On December 1 the asset Supplies was debited for $700. On
December 31 the company needs to prepare a prepayment-type ___________ entry.
7) Adjusting entries are used to convert accounting information from the cash basis
of accounting to the ______________ basis of accounting.
8) The typical number of accounts involved in an adjusting entry.
9) An adjusting entry to recognize that part of a customer's prepayment has been
earned will include a __________ to a liability account.
10) The accrued interest that the bank has earned but has not yet ______________
is reported as a debit balance in the account Interest Receivable.
X. Stockholders' Equity
1) A type of preferred stock that entitles its owners to receive past omitted
dividends plus the current dividend before the common stockholders receive a
dividend.
2) The maximum number of shares of stock that a corporation can issue is the
________________ number of shares of stock.
3) Dividends declared by a corporation, but not yet paid, are reported on the
balance sheet as a __________________.
4) A 15% stock dividend is considered to be a ____________ (small, large) stock
dividend.
5) A corporation's stock that has been repurchased by the corporation but has not
been retired is _____________ stock.
6) The percentage of ownership in a corporation is dependent upon the number of
_________ of stock owned.
7) When stock is issued for something other than cash, such as land, the land and
the stock are recorded at the fair market ___________ of the land or the stock
issued whichever is more clearly determinable.
8) One component of the book value of preferred stock is its ________ price.
9) Appointed by the board of directors of a corporation to carry out its policies.
10) Corporations may not report a _______ or loss on the sale of its treasury stock.