Introduction to Accounting: Fill in the Blanks
are the amounts of cash or other assets taken by the owner from the business for personal use.
The excess of current assets over current liabilities is called
is the process that provides information needed as a basis for making business decisions.
are assets that are purchased for permanent use in the business.
accounts exist even after the close of accounting year.
A balance sheet is a statement of assets and
of a business.
A balance sheet shows the
of a business entity.
Current assets are more liquid than
Current liabilities are liabilities that are payable within
The claims of creditors against the assets of a business are said to be
Assets that can be converted into cash within one year of the operating cycle are called
The two types of transactions are
Recording two aspects of each transaction is known as the
The difference between assets and liabilities represents
is the interest of owners in a business.
An action undertaken to earn profit is called
A person who owns a business alone is called a
The amount of cash and goods that the owner of a business invests in the business is known as
A dealing between two persons or things is a
Goods sold in the course of trading are called
Recording business transactions in a set of books is known as
Money owed to an outsider is referred to as
Goods purchased for resale are called
Business property is called
Withdrawal of cash or merchandise for personal use is called
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True contributes to his own finance dictionary, 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.