Revenue expenditure is the day-to-day …………. costs of a business.

The main difference between the two types of expenditure is the ………… of time the expenditure is of benefit to the business.

Where business ………… (e.g. telephone) are used for the owner’s personal use, this is also regarded as drawings, and adjustments must be made at the end of the year to reflect this.

Capital expenditure is aimed at providing long-term benefits.

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.

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

A prepaid income is an income received in…………of the accounting period that it relates to.

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

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

An accrued expense represents an expense paid in advance.

A prepaid expense is shown as a current asset in the balance sheet.

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.