Fill in the Blanks Using the Words Provided Below

question 16

Essay

Fill in the blanks using the words provided below:
Analyzing, Statement of Financial Position, crediting, debiting, journal, ledger, prepaid expenses, posting, unearned revenue.
a) The act of entering an amount on the left side of an account is called ___ the account, and making an entry on the right side is called ___ the account.
b) The basic steps in the recording process are ___ each transaction, entering the transaction in a ___, and ___ the information to appropriate accounts in the ___.
c) Expenses paid and recorded in an asset account before they are used or consumed are called ___. Revenue received and recorded as a liability before it is earned is referred to as ___.
d) The ___ reports the assets, liabilities, and shareholders' equity of a business on a specific date.

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Definitions:

Actual Costing System

A costing method that assigns costs to products based on the actual costs of direct materials, direct labor, and overhead incurred.

Direct Material Price Variance

Direct material price variance measures the difference between the actual cost of direct materials and the expected (or standard) cost, indicating how well a company manages its material costs.

Actual Price

The real or transacted price of a good, service, or asset, usually the amount of money exchanged in the sale.

Standard Price

A predetermined price established by a company for a product or service, used for budgeting and cost control purposes.