Worksheet 1 Key Topic #4051 Methods of Accounting

Worksheet 1 Key
Topic #4051
Methods of Accounting
Kendra Butters
2. payment received from goods or services, can be cash or noncash (income)
7. unpaid bills or debts (accounts payable)
9. financial statement of equity for an individual/business for a specific point in time; list of assets and
liabilities (balance sheet)
10. income is reported in the year earned and expenses are deducted or capitalized in year incurred
(accrual accounting)
1. revenue minus expenses (net income)
3. cost of goods or services involved with producing a product or service (expense)
4. summary of revenues and expenses over a given period of time (income statement)
5. method of accounting where income is credited to the year it was received and expenses are deducted
in the year they were paid (cash accounting)
6. income to the business from the sale of goods or services or changes in inventory (revenue)
8. difference between income and expenditures (profit)