Comprehension

Answer the following questions.

1. What accounting methods do you know?

2. What is the most widely used bookkeeping method?

3. How do you understand the double entry method?

4. What is the purpose of this method?

5. Can you explain what the cash basis method is?

6. What is the difference between the cash basis and the actual basis methods?

Vocabulary

Fill in the correct word from the list below.

Debit, accrual, cash, financial, accurate, chart, to earn, double entry

1. …………………… basis

2. …………………… picture

3. …………………… flow

4. …………………… method

5. …………………… condition

6. …………………… entry

7. …………………… of accounts

8. …………………… revenue

3. Complete the sentences with the missing parts:

expenses matches the revenues or used up; upon receipt of funds; the balance sheet; two; two different accounts; services or goods have been delivered

1. The financial statement that reports assets, liabilities, stockholders’(owners’) equity at a specific date is ___________.

2. Under the accrual basis of accounting revenues are reported in the accounting period when __________.

3. Accounting entries involve minimum of _______ accounts.

4. Under the accrual basis of accounting expenses are reported in the accounting period when ________.

5. Under the cash flow basis income is recorded _______.

6. In the double-entry accounting method every journal entry transaction is recorded in the journal once, but affects ________.

Дата добавления: 2015-07-11