Accounting 151 final

LLP

A form of the partnerships business entity is

True or false the normal balance of a contra asset account is a debit

False

What would cause a trail balance error?

If the balances are not equal adding the trail balance incorrectly recording both halves of a transactions as debits or credits rather than recording one debit and one credit. recording only half a transaction recording an amount incorrectly from a transation. recording a debit for one amount and a credit for a different amount making an error when calculating the account balances.

income statement

It shows the revenue earned and the expenses of doing business.

Which of the following would cause the Trial Balance to be out of balance?

Placing the Accounts Receivable balance in the Credit column

Which of the following would result in an error when preparing the Trial Balance?

Placing the balance in Prepaid Rent in the Credit column

True

The financial statements and the auditor's report must be made available to stockholders of publicly owned corporations.

AAA

The group of accounting educators who offer their opinions about proposed FASB statements, after research has been done to determine the possible effects on financial reporting and the economy

True or false The entry to transfer net income to the owner's capital account would include a debit to the owner's capital account.

True

The entry to close the Income Summary account may include

a debit to Income Summary and a credit to the owner's capital account.

The account numbers from the ledger are recorded in the Posting Reference column of the general journal by

after each amount has been posted

On the worksheet, the Balance Sheet columns should balance

after the net income amount is added to the Balance Sheet Credit column.

The adjustments made on the worksheet

are recorded in the journal and then posted to the general ledger accounts.

On a balance sheet, Accumulated Depreciation—Equipment is reported

as a deduction from the cost of the equipment.

The Sarbanes-Oxley Act includes rules on

auditor rotation

When checks are issued to employees after the entry to record the payroll has been made, the accountant would

debit Salaries and Wages Payable and credit Cash.

To record a deposit of federal income taxes withheld and social security and Medicare taxes, the accountant would

debit one or more liability accounts and credit an asset account.

On a worksheet, a net loss is

debit side of the balance sheet

Publication 15, Circular E contains withholding information

for federal income taxes only.

Which of the following is a factor in the determination of the amount of social security tax to withhold from an employee's pay?

gross wages

which of the following is NOT part of the process of accounting for financial information?

identifying

Order of financial statements

income statement statement of equity balance statement

SEC act

looks over the financial information provided by publicly owned corporations to their investors and potential investors. Act of 1933 and the Securities Excanges act of 34 in order to protect those who have invested in publicly owned corporations.

contra asset account

offsets an asset account on the balance sheet

The entry to close the owner's drawing account would include a debit to the

owner's capital account and a credit to the owner's drawing account

Form 941 is filed

quarterly

The Posting Reference column of a journal is used to

record the number of the ledger account to which the information is posted.

a net loss is is recorded where

recorded in the Balance Sheet Debit column

type of accounts that would appear on a firm's income statement

revenues and expenses

The entry to close the Depreciation Expense account may include a debit to

the Income Summary account and a credit to the Depreciation Expense account.

The book value of long-term assets is reported on

the balance sheet.

The owner of the business would like to see both the debit and credit entry for a specific transaction, he would look in

the journal

The owner's drawing account is closed by debiting

the owner's capital account and crediting the owner's drawing account

The owner's drawing account is closed by debiting

the owner's capital account and crediting the owner's drawing account.

One purpose of closing entries is

transfer the results of operations to owner's equity.

One purpose of closing entries is to

transfer the results of operations to owner's equity.