Accounting basics

Assets are the resources that you own that help you in operating the business, in generating __________.

value.

Liabilities are the items or amounts you owe to __________.

external parties.

The accounting equation states that equity equals assets minus __________.

liabilities.

The two types of assets discussed are __________ and __________.

current assets; noncurrent assets.

The difference between income and expenses determines if a business has made a __________ or a __________.

profit; loss.

The statement that presents financial position at a moment in time is called the statement of __________.

financial position.

Inventory consists of the goods you __________ in your business.

sell.

Equity represents the __________ of ownership in a business.

share.

An example of a liability is __________ payable, which includes money owed to suppliers.

accounts.

An asset that does not have a physical presence but provides benefits to a business is known as an __________ asset.

intangible.

The costs incurred to operate a business are classified as __________.

expenses.

Revenue generated from selling products or services is referred to as __________.

income.

When a company makes a profit, it __________ the owner's equity.

increases.

The opposite of accounts payable is __________, which refers to the money owed to a business.

accounts receivable.

The five elements in accounting are assets, liabilities, __________, __________, and __________.

equity; income; expenses.

The concept where all transactions must balance in accounting is likened to __________.

Thanos.

Current assets are expected to be converted into cash within __________ months.

twelve.

A liability that represents money received in advance for services not yet rendered is called __________ received in advance.

income.

The financial document that summarizes a company’s revenue and expenses over a period of time is called the statement of __________ income.

comprehensive.

In accounting, transactions that increase or decrease elements affect the __________ equation.

accounting.