1. Accounting (DEAD)

The accounts which when debited are increased:

assets and expenses

A family served by College Funeral Home purchased a funeral for a total price of $4,000.00 This price included $2,000.00 worth of merchandise and a professional service fee of $2,000.00. If the municipality in which College Funeral Home operates charges 8% sales tax. The sales tax on this funeral package would be? $320.00 $160.00 None of these $80.00

$160.00

A plant asset was purchased by the funeral home costing $8,000. It has a useful life of 3 years and a salvage value of $2,000. Using the straight line method of depreciation, what would be the yearly amount of depreciation? $2,667 $2,000 $1,000 $166.67

$2,000 $8,000-$2,000 Divided by 3 (years)

John Brown works for College Funeral Home. His standard hourly pay rate is $15.00/hr. He is paid time and a half for any hours over 40 hours each week. His over-time pay rate would be? None of these $22.50/hr. $25.00/hr. $17.50/hr.

$22.50 15.00 X 1.5

If you borrow $1,000.00 at an interest rate of 9%, what would the interest on that loan be for 3 months. $90.00 $28.00 $22.50 $30.00

$22.50 Interest = Principal x Rate x Time Example: If you borrow $1000 at 5% interest, how much interest will you pay in 6 months? I = P x R x T I = $1000 x .05 x (6 Months/ 12 Months) I = $25 How much will you pay in total? Total = Interest + Principal Total = $25 + $1000 Total = $1025

Which of the following represents the difference between the total assets and the total liabilities? 1. Owner's equity 2. Net Worth 3. Net Income 4. Capital 1, 3 and 4 only 1 and 2 only 1, 2 and 4 only 1 only

1, 2 and 4 only 1. Owner's equity 2. Net Worth 4. Capital

At the end of the month a funeral home's assets totaled $50,000; the liabilities totaled $20,000; revenue for the month totaled $6,000; and the total of the expenses amounted to $4,000. Which of the following statements is true? 1- Owner's equity= $70,000 2- Owner's equity= $30,000 3- net income= $2,000 4- net loss= ($2,000) 2 and 4 1 and 4 1 and 2 2 and 3

2 & 3

The accounting equation may be stated as: 1- liabilities= assets + owner's equity 2- assets + liabilities= owner's equity 3- assets= liabilities + owner's equity 4- assets- liabilities= owner's equity 1 and 3 3 and 4 2 and 4 1 and 2

3. assets = liabilities + owner's equity 4. assets - liabilities = owner's equity

Expense means that there is a/an: increase in owner's equity increase in sales decrease in owner's equity increase in an asset

A decrease in owner's equity.

The title of an account which would normally have a credit balance is: advertising expense cash accounts payable accounts receivable

Accounts Payable

When revenue is earned on account, which accounts are increased and/or decreased? Accounts receivable increases; Revenues decreases Cash increases, Revenue increases Accounts receivable decreases; Revenues decreases Accounts receivable increases; Revenues increases

Accounts receivable increases; Revenues increases

When you recognize revenue when it it earned, and expenses when they are incurred you are operating under the: cash basis of accounting hybrid basis of accounting accrual basis of accounting fiscal basis of accounting

Accrual basis of accounting

Income earned but not received is called: -Accrued income -Deferred income -Future income -Fiscal income

Accrued income (deferred or "unearned" is not yet earned, but received)

Which of the following accounts would be used to assist the accountant in an adjusting entry involving depreciation? Automobile carry over from previous year Automobile expense Allowance for doubtful accounts Accumulated depreciation

Accumulated depreciation

A ledger must contain: cash disbursed assets all accounts liabilities

All accounts

Capital: Asset Liability Account Receivable Owner's Equity

Asset

A statement regarding the status of assets, liabilities, and owners equity as of a specified date: Balance sheet Fixed account Current ledger account Ledger

Balance Sheet

The point at which total sales revenue equals total operating costs:

Break - even analysis

An estimate of revenue and probable expense for a given period of time is a: A formal written statement, which may be based upon adjusted historical data, of management's plans for the future expressed in Financial Terms bank statement budget balance sheet bill

Budget

Checks returned to the depositor that have been paid by the bank are: canceled checks order checks deposit checks outstanding checks

Cancelled checks "A canceled check is a check that has been paid or cleared by the bank it was drawn on after it has been deposited or cashed. The check is "canceled" after it's been used or paid so that the check cannot be used again."

Money and money substitutes received: Bad debts Cash receipts Supplies Notes payable

Cash Receipts

Used to record paying cash for an item: Sales journal General cash journal Cash payment journal Cash receipts journal

Cash payment journal

A document issued by a state which permits a corporation to operate:

Charter

A written order drawn by a depositor directing his or her bank to deduct money from his account and pay the person or company designated: Draft Note Check None of these

Check "Checks are drawn by a current account holder of a bank whereas drafts are drawn by one branch of a bank to another branch of the same bank" Note is promise to pay money (check this)

An entry on the credit side of an expense account indicates the account has been: closed balanced adjusted increased

Closed

The transferal of the balance of the temporary accounts to the capital account: NOTE: This follows the REID formula closing entires journalizing posting footing

Closing Entries

The acronym REID (revenue, expense, income, drawing) is used when: making adjustment to the ledger correcting journal entries closing temporary accounts posting journal entries to the ledger

Closing temporary accounts

The person or business concern to whom a shipment is made is a:

Consignee

A person to whom a debt is owed is called a: gangster creditor debtor mobster

Creditor

Accounts receivable: Fixed asset Fixed liability Current asset Current liability

Current Asset "Will be paid within one year"

What would be the closing entry to close the revenue account? debit revenue, credit expenses debit expense and revenue summary, credit revenue debit revenue and credit expense and revenue summary Debit capital, credit revenue

Debit revenue and credit expense and revenue summary ADE LER : Debit Revenue to decrease it and credit the EXPENSE Summary

Which of the following methods of depreciation has a built-in salvage value for the item being depreciated: declining balance straight line both a and b none of these

Declining balance

An entry made on the debit side of the proprietorship accounts indicates that the accounts has been: decreased footed increased balanced

Decreased Proprietorship = Equity

The decrease in the value of a fixed asset is called:

Depreciation

A distribution of profits of a corporation to its stockholders as declared by the board of directors is:

Dividend

The abbreviation for "debit" is: Dt. Dr. Db. Dbt.

Dr.

A person or concern, usually a bank, that has been ordered to make payment on a check or draft is called the: maker drawer drawee payee

Drawee

A person who signs a check or draft ordering payment to be made is called the: maker drawer drawee payee

Drawer

A separate owners equity account in which withdrawals of assets against profits by the owner are recorded: Income Asset Drawing Expense

Drawing

Which one of these does not appear on the balance sheet? Proprietorship Expenses Liabilities Assets

Expenses

Funeral Coach is a Fixed liability Current asset Current liability Fixed asset

Fixed asset "In business, the term fixed asset applies to items that the company does not expect to consumed or sell within the accounting period. ... Examples of fixed assets include manufacturing equipment, fleet vehicles, buildings, land, furniture and fixtures, vehicles, and personal computers."

Mortgage payable: Fixed asset Fixed liability Current liability Current asset

Fixed liability A fixed liabilities are a debts. bonds, mortgages or loans that are payable over a term exceeding one year.

A total, written in small pencil figures, under the last entry in a column is the: journalizing cheat sheet footing balance

Footing

The totaling of a column in a journal or ledger account is called: closing journalizing footing posting

Footing

The difference between net sales and cost of goods sold: principal gross margin interest sales tax

Gross Margin

The difference between the cost of goods sold and their selling price is called: cost of goods available for sale ending inventory net profit gross profit

Gross Profit Net profit = The difference between gross profit and expenses when gross profit is larger

If the Funeral Directors eight grade daughter was writing a paper for school about her families business, she would use which of the following types of software? Vertical market software Hard & Floppy drive software Horizontal market software Floppy disk software

Horizontal market software More Broad

Double entry bookkeeping means an entry is made:

In a journal and a ledger

An increase in proprietorship as the result of a business transaction is: Net worth Liability Income Asset

Income Same? Increases in the owner's equity resulting from business operations is known as: income overhead principle interest

Advertising expense would be reflected on the: Statement of Financial Condition Balance Sheet Income Statement Statement of Owner's Equity

Income Statement (Revenue, Expenses, Net Profit/Income)

Another term for Profit and Loss Statement is:

Income Statement ALSO CALLED: Statement of operations Reports the profitability of business operations for a specific period of time.

An entry made on the debit side of an asset account indicates that the account has been:

Increased

An entry made on the debit side of an expense account indicates that the account has been:

Increased

An entry on the credit side of a liability account indicates the account has been:

Increased

A paper showing quantity, description, prices of items, total amount of purchase, and terms of payment is a/n:

Invoice

A book in which the daily transactions of a business are first written is the: schedule journal index ledger

Journal

Process of recording transactions in a journal is called: The process of recording information in a ledger is called:

Journalizing Posting The process of recording transactions in a journal is called journalizing while the process of transferring the entries from the journal to the ledger is known as posting.

Memory Size

KB - 1,000 Bites MB - 1,000 KB GB - 1,000 MB TB - 1,000 GB PB - 1,000 TB

Which one these does not qualify as a current asset? Accounts receivable Land Office supplies Cash

Land Long-Term Asset

A book of accounts: Journal Principal journal Ledger Sales journal

Ledger

Accounts which when credited increase? assets and expenses liabilities and assets liabilities and owners equity liabilities and expenses Liabilities and Capital

Liabilities and capital & owner equity Capital = Equity + Revenue

Accounts payable is a/an: liability account asset account owner's equity account expense account

Liability Account

Working capital is a measure of: leverage liquidity investing activities profitability

Liquidity

The individual who makes a promise to pay on a promissory note: Writer Holder Bank Maker

Maker

The amount added to the cost of an article to determine the selling price of that article is the: interest cash advance net profit mark-up

Mark-up

A written promise that pledges real property as security for the payment of a debt:

Mortgage

If the total of the operating expenses section of the income statement is smaller than the total of the income section, the difference is: net loss net worth gross profit net profit

Net Profit

Excess of current assets over current liabilities: net expenses net revenue net working capital net income

Net Working Capital

Liability accounts are identified by the account title followed by the word: drawing expense payable revenue

Payable

What's next after terabytes (TB) or 1,000 terabytes?

Petabyte (PB)

Journal page numbers and ledger account numbers which, when present, confirms that an entry has been posted: transcribing posting reference footing certifying

Posting Reference

Software that is designed to be used by anyone who might benefit from its use is known as:

Prepackaged software

The amount of income from the sale of funeral services would be shown on which formal financial statement? Trial Balance Balance Sheet Work Sheet Profit and Loss Statement

Profit and Loss Statement AKA Income Statement

The amount of revenue from the sale of funeral service would be shown on the: Profit and Loss Statement Statement of Financial Condition Balance Sheet Statement of Assets and Liabilities

Profit and Loss Statement AKA Income Statement

Capital: Fixed Asset Current asset Proprietorship Current liability

Proprietorship Owner's Equity / Net Worth / Proprietorship / Capital : The amount by which the total assets exceed the total liabilities of a business; an owner's financial interest in a business.

Used to record the buying of merchandise on credit: Purchases journal Cash payments journals General journal Sales journal

Purchases Journal

The working storage area of the computer in which data or programs may be written to or read from is known as the: floppy disk random access memory hard disk read only memory

RAM

Storage area which has been manufactured with predetermined information or programs, usually used to store the control program of the computer is:

Read Only Memory

Goodwill is classified as a/an:

intangible asset

Imposed upon the purchaser of goods and collected by the seller, who remits such to the state or city government:

Retail Sales Tax

A deduction from the sales invoice as an incentive for customers to pay their invoices early: sales discount accrual discount cash credit sales return

Sales Discount

That portion of a plant assets original cost that cannot be depreciated is called: scrap or salvage value cost take home pay mark-up

Scrap or salvage value

A type of assets that will be consumed as they are used?

Supplies

When cash is spent in the acquisition of an asset the impact on the accounting equation is: the asset cash is debited the asset cash is credited owner's equity is debited the new asset is credited

The asset cash is credited Cash = Asset and Assets are CREDITED to reduce. ADE LER

The period of time required to purchase goods and services and turn them back into cash is called: the accounting cycle the normal operating cycle a fiscal year a calendar year

The normal operating cycle

A check of the equality of debits and credits: assets check list balance sheet liabilities check list Trial balance

Trial Balance

An informal statement proving that total debit balances are equal to the total credit balances in the ledger: OR: "A check of the equality of debits and credits:" Source document Balance sheet Income statement Trial balance

Trial balance

Software aimed at addressing the needs of a given business within a discernible market (industry):

Vertical market software

The rate at which information is transferred from one computer to another:

baud rate

If a funeral home sells a funeral service on a 30 day account, the entry to record the transactions would be to: debit accounts receivable; credit sales debit notes receivable; credit sales debit accounts payable, credit purchases debit sales; credit accounts receivable

debit accounts receivable; credit sales Accounts receivable = Asset

If a funeral director receives payment from a client who had purchased a service on a 30 day account, he would make which of the following entries in his journal? debit cash; credit sales debit cash; credit accounts receivable debit accounts receivable; credit cash debit purchases; credit cash

debit cash; credit accounts receivable

Purchase of office supplies on credit is recorded by: debit office supplies and credit purchases credit office supplies and debit accounts payable debit purchases and credit accounts payable debit office supplies and credit accounts payable

debit office supplies and credit accounts payable

To establish a petty cash fund, one would: debit petty cash and credit cash debit cash and credit petty cash debit accounts payable and credit cash debit cash and credit accounts payable

debit petty cash and credit cash

If a funeral director purchases caskets from a casket manufacturer on a 30 day account, he would record the transaction as follows: debit sales; credit purchases debit purchases; credit cash debit purchases; credit accounts payable debit purchases; credit accounts receivable

debit purchases; credit accounts payable Purchases = Expense Account

The payment of rent by cash is recorded by which of the following? debit accounts payable and credit cash debit cash and credit rent expense debit rent expense and credit cash debit cash and credit capital

debit rent expense and credit cash Expenses are the costs of a company's operation, while liabilities are the obligations and debts a company owes.

Which of the following methods of depreciation is used on a companion assets that have great value when first purchased and lessor value in later years. Example: vehicles. declining balance both a and b none of these straight line

declining balance

A business paper that is a claim on cash and which may be transferred legally by endorsement:

negotiable instrument

From the point of view of the business - A written promise of a customer to pay that business a sum of money at a future date is a/an: note receivable accounts receivable accounts payable note payable

note receivable

Difference between assets and liabilities: owners equity assets balance of income fixed asset

owners equity

Which of the following methods of depreciation is used on a companies assets that are worth just as much in the later years of use as they were during when first purchased., Example: embalming instruments, workshop tools like hammers and screwdrivers, etc. declining balance both a and b none of these straight line

straight line