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ACCOUNTING 1 FINANCIAL ACCOUNTING AND REPORTING (Fill in The Blanks)

1. Accounting involves recording, classifying, analyzing, summarizing, and reporting financial information to stakeholders. 2. It records business activities that can be measured in dollars, such as providing goods and services in exchange for money, according to the monetary concept. 3. Personal financial activities are not recorded to comply with the entity concept, and transactions are recorded based on reliable information under the historical cost concept.

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385 views1 page

ACCOUNTING 1 FINANCIAL ACCOUNTING AND REPORTING (Fill in The Blanks)

1. Accounting involves recording, classifying, analyzing, summarizing, and reporting financial information to stakeholders. 2. It records business activities that can be measured in dollars, such as providing goods and services in exchange for money, according to the monetary concept. 3. Personal financial activities are not recorded to comply with the entity concept, and transactions are recorded based on reliable information under the historical cost concept.

Uploaded by

hahahaha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ACCOUNTING 1 FINANCIAL ACCOUNTING AND REPORTING

Fill in the blanks

1. Accounting is a process of recording, __________________, analyzing, _______________, and reporting


of financial information to the stakeholders of the businesses.
2. An activity carried out by a business to provide goods and services in exchangefor money is
known as a ________________.
3. Only business activities that can be measured in dollars and cents are recorded. This is in accordance with
the _______________ concept.
4. Personal financial activities of the owner of a business are not recorded in the books of the business. This
complies with the __________________ concept.
5. Transactions are recorded based on reliable and verifiable information. This is in accordance with the
___________________ concept.
6. Transaction should be recorded in the accounts at their original cost shown in the source documents. This
practice complies with the ____________________ concept.
7. Asset accounts normally have ________ balances. An increase in asset in liability is recorded by a
________ and a decrease in entered as a _________.
8. Liability accounts normally have ________ balances. An increase in liability is recorded by a _______ and
a decrease is entered as a _______.
9. The owner’s capital account normally has a ______ balance. This account increases on the _____ side and
decreases on the ____________ side.
10. Income accounts normally have _____ balances. These accounts increase on the ________ side and
decrease on the _______ side.
11. Expense accounts normally have _______ balances. These accounts increases on the ______ side and
decrease on the ________ side.
12. The four phases of accounting are ____________, ______________, ______________ and ___________.
13. Increases in the capital account are ______________.
14. Increases in income accounts are ________________.
15. Increases in expense accounts are _______________.
16. The difference between assets and liabilities is ____________________.
17. Financial events that occur in a business are termed ________________
18. An investment (by the owner) in the business increases _____________ and ________________.
19. To acquire something “ on account” is to create a _____________
20. The transaction description “paid on account” means a reduction of the asset _________ and reduction of
the liability _________
21. Income increases net assets and also ______________.
22. A withdrawal of cash for owners’s personal use reduces cash and _____________.
23. The left side of the account is known as the _____________, whereas the right side is the____________.
24. Increases in asset accounts are _____________.
25. Increases in liability accounts are __________________.

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