PF - Ch 18 Study Guide

PF - Ch 18 Study Guide
1. An accounting period usually covers one _________________________________________________.
2. An owner’s claim to the assets of a business is called owner’s ___________________________.
3.When accountants record business transactions, they use a system called _________________________.
4. An asset account increases on ______________________________.
5. The final step of the accounting cycle is ______________________________________.
6. What does a business owner or an accountant use to analyze transactions?_____________________________
7. An income statement has all the following sections __________________________________
8. Which term refers to the amount of revenue that remains after expenses for the period are subtracted?
9. On a balance sheet, the balance in Accounts Payable decreases when ____________________________.
10. Which situation is called a “cash crunch”?_______________________________________________
11. __________________________________________ is made up of the activities that help a business keep its
accounting records in an orderly manner
12. _________________________________explains why the Cash in Bank account either increased or decreased
13. _________________________________computed by subtracting the cost of the merchandise sold from the amount
earned from sales
14. _________________________________ is the total amount of money owed to a business
15. __________________________________is the amount entered on the right side of a T account
16. ___________________________________summarizes the changes that result from your business transactions during
an accounting period
17. __________________________________is the amount entered on the left side of a T account
18. ___________________________________reports how much a business takes in from sales and where the money
19. __________________________________ is the amount of money owed to the creditors of a business
20. ______________________________________ means that the records and reports of a business are kept completely
separate from the owner’s personal finances