Across (Accounting Basics #1) 3. The basis or method of accountng that is less effective than the accrual basis in measuring profitability. The basis or method of accounting where expenses are reparted as they are incurred rather than when they are paid. 4. 8. When a company provides a service and allows the customer to pay in 30 days, the account to be debited is Account 2 The systematic allocation of the cost of equipment and buildings used in a business from the balance sheet to the income statement over the useful life of the asset 13. Accounting software facilitates recording business 15. The title of the asset account that reports the unexpired cost of insurance premiums that have Insurance aiready been paid is 7. This component of Property, Plant&Equipment is not depreciated. 18. The balance sheet reports amounts that apply at a particular 22 Known as the book of original entry, it lists transactions in order by date. 24. The net income of a company is sometimes referred to as the- n time ine (o f the income statement) 25. Amajor element of the income statement that reports the costs that have been used in order to obtain revenues during the accounting period 30. Depreciation is an allocation technique: it is not a 32. The books of the company that contains all of the accounts is the general 33. The accounting guideline that prevents assets from being reported at amounts greater than their echnique. cost is the 34. A major element of the income statement that reports fees eamed and sales of products. 35. The accrual basis of accounting is more effective than the cash basis in reporting the of a business. 36. Generaly accepted accounting guidelines are referred to as