5-2 Fundamentals of Accounting Review Business U

Fill in the blank: ________ is the process of recording, maintaining, and reporting an organization’s financial transactions and records.

• Accounting

• Marketing

• Budgeting

• Auditing

Fill in the blank: The ________ is the process of recording and processing a company’s financial transactions over an accounting period.

• Accounting Cycle

• Budgeting Process

• Financial Reporting

• Auditing Procedure

Fill in the blank: The ________ is Assets = Liabilities + Shareholders’ Equity.

• Accounting Equation

• Balance Sheet

• Cash Flow Statement

• Income Statement

Fill in the blank: The ________ method recognizes and records revenues and expenses at the time they occur, even if money doesn’t change hands.

• Accrual Accounting Method

• Cash Accounting Method

• Modified Cash Basis

• Tax Accounting Method

Fill in the blank: An ________ is a tangible or intangible resource that has economic value, owned by a person or organization.

• Asset

• Liability

• Expense

• Revenue

Fill in the blank: A ________ is a financial statement that marks a company's financial situation at a moment in time, showing all assets, liabilities and owners’ equity.

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Profit and Loss Statement

Fill in the blank: The ________ method recognizes and records revenues and expenses when cash actually changes hands.

• Cash Accounting Method

• Accrual Accounting Method

• Hybrid Accounting Method

• Modified Cash Basis Method

Fill in the blank: ________ is a facet of managerial accounting with the intent of determining all the costs, including variable and fixed costs, associated with producing a product or service.

• Cost Accounting

• Financial Accounting

• Tax Accounting

• Auditing

Fill in the blank: ________ are equal but opposite bookkeeping account entries; debits are on the left side, and they either increase an asset or expense account, or decrease equity, liability, or revenue accounts, while credits are on the right side, and they either increase equity, liability, or revenue accounts or decrease an asset or expense account.

• Debits and Credits

• Assets and Liabilities

• Profits and Losses

• Income and Expenditure

Fill in the blank: The ________ system ensures every financial transaction has an equal and opposite effect, recorded in at least two accounts, where one account gets a debit and the other a credit.

• Double-entry Accounting System

• Single-entry Accounting System

• Cash Accounting System

• Accrual Accounting System