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.

 

4. Accrual basis revenue is generally recognized at the time services are ____________rendered or when goods are ____________sold and ____________delivered to a customer.

 

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 .

 

9. ____________Unearned revenue represents future revenue that has been collected but not yet earned, whereas ____________accrued revenues have been earned but not yet received.

 

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.