BA110 Unit 4 Terminology Exam

Created by IECRB

1. A balance sheet that lists assets on the left and liabilities and owner’s equity on the right
2. Journal entries made to update accounts for items that were not recorded during the accounting period
3. That portion of an asset’s original cost that has not yet been depreciated
4. Journal entries that transfer the results of operations (net income or net loss) to owner’s equity and reduce the revenue, expense, and drawing account balances to zero
5. An account with a normal balance that is opposite that of a related account
6. An asset account with a credit balance, which is contrary to the normal balance of an asset account
7. Allocation of the cost of a long-term asset to operations during its expected useful life
8. A special owner’s equity account that is used only in the closing process to summarize the results of operations
9. To understand and explain the meaning and importance of something (such as financial statements)
10. A statement that is prepared to prove the equality of total debits and credits after the closing process is completed
11. Expense items acquired, recorded, and paid for in advance of their use
12. A balance sheet that lists the asset accounts first, followed by liabilities and owner’s equity
13. An estimate of the amount that could be received by selling or disposing of an asset at the end of its useful life
14. Allocation of an asset’s cost in equal amounts to each accounting period of the asset’s useful life
15. A form used to gather all data needed at the end of an accounting period to prepare financial statements

a. Contra account
b. Worksheet
c. Closing entries
d. Depreciation
e. Postclosing trial balance
f. Book value
g. Interpret
h. Straight-line depreciation
i. Adjusting entries
j. Prepaid expenses
k. Account form balance sheet
l. Report form balance sheet
m. Salvage value
n. Contra asset account
o. Income Summary account

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BA110 Unit 4 Terminology Exam (Answer Key)

Created by IECRB

k 1. A balance sheet that lists assets on the left and liabilities and owner’s equity on the right
i 2. Journal entries made to update accounts for items that were not recorded during the accounting period
f 3. That portion of an asset’s original cost that has not yet been depreciated
c 4. Journal entries that transfer the results of operations (net income or net loss) to owner’s equity and reduce the revenue, expense, and drawing account balances to zero
a 5. An account with a normal balance that is opposite that of a related account
n 6. An asset account with a credit balance, which is contrary to the normal balance of an asset account
d 7. Allocation of the cost of a long-term asset to operations during its expected useful life
o 8. A special owner’s equity account that is used only in the closing process to summarize the results of operations
g 9. To understand and explain the meaning and importance of something (such as financial statements)
e 10. A statement that is prepared to prove the equality of total debits and credits after the closing process is completed
j 11. Expense items acquired, recorded, and paid for in advance of their use
l 12. A balance sheet that lists the asset accounts first, followed by liabilities and owner’s equity
m 13. An estimate of the amount that could be received by selling or disposing of an asset at the end of its useful life
h 14. Allocation of an asset’s cost in equal amounts to each accounting period of the asset’s useful life
b 15. A form used to gather all data needed at the end of an accounting period to prepare financial statements

a. Contra account
b. Worksheet
c. Closing entries
d. Depreciation
e. Postclosing trial balance
f. Book value
g. Interpret
h. Straight-line depreciation
i. Adjusting entries
j. Prepaid expenses
k. Account form balance sheet
l. Report form balance sheet
m. Salvage value
n. Contra asset account
o. Income Summary account

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BA110 Unit 4 Terminology Exam

BA110 Unit 4 Terminology Exam (Answer Key)

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