17. Resources owned by a business that provide future services or benefits are called
_____________, they are increased by a _________________ and can be found on a
_______________________________.
A. Assets / Debit / Balance Sheet
B. Equity / Credit / Balance Sheet
C. Assets / Credit / Income Statement
D. Equity / Credit / Statement of Owner’s Equity
18. A snapshot statement of a company’s financial position at a specific date.
A. Income Statement
B. Balance Sheet
C. Statement of Owner’s Equity
D. Cash Flow Statement
19. System that collects and processes data from transactions, organizes them into useful
reports and communicates results to decision makers.
A. Internal Control System
B. Journal & Ledger System
C. Financial Statement System
D. Accounting Information System

20. Identifies cash inflows and outflows over a period of time.
A. Income Statement
B. Statement of Cash Flows
C. Balance Sheet
D. Statement of Partnership Equity
21. Reports revenues earned less expenses incurred over a period of time.
A. Statement of Owner’s Equity
B. Trial Balance
C. Statement of Cash Flows
D. Income Statement
22. An accounting method that recognizes revenues when earned and expenses when incurred.
A. Accrual Basis
B. Systematic Basis
C. Cash Basis
D. Rational Basis
23. A creditor’s claims on the assets of a company are called _______________, the balance is
increased by a _________________and they can be found on a(n) __________________.
A. Owner’s Equity / Credit / Statement of Owner’s Equity
B. Liabilities / Credit / Balance Sheet
C. Bad Debt Expense / Debit / Income Statement
D. Allowance for Doubtful Accounts / Credit / Balance Sheet
24. Expense created by allocating the cost of a plant asset over a period of time.
A. Depletion
B. Amortization
C. Depreciation
D. Bad Debt