Fill in the Blanks: Chapter Three
1. Accountants downplay the economic concept of profit and employ a more objective ____________ tranactions approach in computing net income.
2. The ____________periodicity assumption is paramount to income measurement, and holds that an organization's life can be divided into discrete measurement intervals.
3. An accounting year that covers a period of time other than January 1 through December 31 is typically referred to as a ____________fiscal year.
5. The ____________matching principle holds that expenses should be recorded in the same time period as the revenues they helped to produce.
6. ____________Prepaid expenses are goods and services purchased for future consumption and paid for in advance.
7. The Accumulated Depreciation account is termed a ____________contra asset.
8. The reported amount for an asset, less its accumulated depreciation, is frequently referred to as ____________net book value .
10. An adjusting journal entry to record an accrued expense would necessarily involve a ____________debit to an expense account.
11. Financial statements may be prepared directly from the ____________adjusted trial balance.
12. The method wherein prepaid expenses are initially recorded into the expense account is called the ____________income statement approach.
13. Under the ____________cash basis of accounting, revenues are recorded in the period of receipt and expenses in the period of payment. This method is generally regarded as being inferior to the ____________accrual basis of accounting.