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1		An balance sheet lists assets on the left and liabilities and owner's equity on the right side of the balance sheet.


2		A balance sheet lists items vertically with assets above the liabilities and owner's equity.


3		Another term for reporting period is period.


4		The approach to preparing financial statements that uses the adjusting process to recognize revenues when earned and expenses when incurred, not when cash is paid or received, is called accounting.


5		Costs incurred in a period that are both unpaid and unrecorded are called expenses.


6		Revenues earned in a period that are both unrecorded and not yet received in cash (or other assets) are called revenues.


7		The trial balance is prepared after adjustments are recorded and posted to the ledger.


8		A journal entry at the end of an accounting period to bring asset and liability account balances to its proper amount while also updating the related expense or revenue account is called an entry.


9		Revenues are recognized when cash is received and expenses are recorded when cash is paid when using a basis accounting system.


10		The Accumulated Amortization account is an example of a account.


11		is an expense created by allocating the cost of plant and equipment to the periods in which they are used.


12		When a company with a fiscal year that ends on December 31 prepares financial reports for the month of March, the reports are called financial reports or statements.


13		The principle is a broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses.


14		Plant and equipment are examples of long-lived assets used to produce goods or services.


15		Items paid for in advance of receiving their benefits are called expenses.


16		A company that is amortizing an asset at $3,000 per year for five years is using the - amortization method.


17		The principle is a broad principle that assumes that an organization's activities can be divided into specific time periods such as months, quarters, or years.


18		A listing of accounts and balances prepared before adjustments are recorded and posted to the ledger is called an trial balance.


19		When cash is received prior to providing the products or services to the customer, the amount received is called revenue.


20		Book value of an asset is calculated by taking the cost of asset minus its .


21		The value is what an asset can be sold for in the market.


22		A contra account is an account that is linked with another account and has an normal balance to its counterpart.

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