An accrued expense is shown as an amount due within 1 year in the balance sheet.

An accrual of expense remains ………at the end of that period.

An accrued expense is shown amongst the liabilities in the balance sheet.

A prepaid expense requires no year-end adjustment.

Expenses and incomes need to be…………..to the correct accounting period.

Accrual of income means that income due …………. the financial year has not been received by the end of the year.

A debit balance on the insurance account means that insurance premiums have been paid in advance.

The prepaid amount is …………..from the figure shown in the trial balance when including the item in the profit and loss account.

An expense accrual appears in the balance sheet as a………..

An income prepayment appears in the balance sheet as a……………

A prepaid expense is added to the expense item from the trial balance.

A bank account with overdraft has a debit balance.

The third step in updating the cash book is that the cash book is ……………to obtain the up-to-date balance.

The items picked up from the bank statement should not appear in the …………statement.

Bank charges are the income of the business.

One of the reasons for a dishonored cheque is that the drawer has not……..……funds in his bank account.

A ………… cheque is one which the bank refuses to pay for various reasons.

The reconciliation statement will start with the balance as…………..the bank statement.

A stale cheque might be a dishonored one.

The cash book is …………. with items revealed by the bank statement, e.g. bank charges, credit transfer, direct debit, etc.