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.

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.

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

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

. ………..cheques and amounts paid in, not yet credited are used to prepare the bank reconciliation statement.

The asset account balance is not reduced by the …………..provision for depreciation.

There is likely to be either a ……….or a profit arising out of the sale of a fixed asset.

Any increase in a depreciation provision is credited to the Profit and Loss account.

In the balance sheet, each fixed asset is shown at………..less total depreciation to date.

Bad debts are debts that the business is unable to………..

Amounts due from debtors, which are individually written off should be debited to bad debts account.