Introduction to Accounting: Fill in the Blanks

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on May 2, 2022

1. are the amounts of cash or other assets taken by the owner from the business for personal use.

2. The excess of current assets over current liabilities is called .

3. is the process that provides information needed as a basis for making business decisions.

4. are assets that are purchased for permanent use in the business.

5. accounts exist even after the close of accounting year.

6. A balance sheet is a statement of assets and of a business.

7. A balance sheet shows the of a business entity.

8. Current assets are more liquid than assets.

9. Current liabilities are liabilities that are payable within .

10. The claims of creditors against the assets of a business are said to be .

11. Assets that can be converted into cash within one year of the operating cycle are called .

12. The two types of transactions are .

13. Recording two aspects of each transaction is known as the system.

14. The difference between assets and liabilities represents .

15. is the interest of owners in a business.

16. An action undertaken to earn profit is called .

17. A person who owns a business alone is called a .

18. The amount of cash and goods that the owner of a business invests in the business is known as .

19. A dealing between two persons or things is a .

20. Goods sold in the course of trading are called .

21. Recording business transactions in a set of books is known as .

22. Money owed to an outsider is referred to as .

23. Goods purchased for resale are called .

24. Business property is called .

25. Withdrawal of cash or merchandise for personal use is called .

Frequently Asked Questions

What is Merchandise?

Merchandise is used to describe any such product that you can buy or sell, including groceries in a supermarket, clothes in a retail store and electronics on a website.

What does a bookkeeper do?

In accounting, Drawing generally refers to the action of taking funds from an account or company holdings for personal use.

What does a bookkeeper do?

What does a bookkeeper do?

What is Working Capital?

Working Capital is a company’s net amount of cash, Accounts Receivable, and inventories minus its net amount of liabilities, such as its debts and unpaid bills.

What are Fixed Assets?

Fixed Assets are assets that a company uses to produce its goods and services, including buildings, machinery, vehicles, computers and electronic equipment, and furniture.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

7 thoughts on "Introduction to Accounting: Fill in the Blanks"

  1. Modern commerce is based on the concept of the fill in the blanks of assets which have a certain fill in the blanks

    1. Thanks! Let us know what other kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!

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