accounting comp

Invoice

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

Payee

a person or company who will receive payment on a promissory note, check, draft or money order is called the

Drawee

a person or concern, usually a bank, that has been ordered to make payment on a check or draft is called the

Drawer

a person who signs a check or draft ordering payment to be made is called the

Creditor

a person who whom a debt is owed is called a

At any time

a profit and loss statement can be prepared

Depreciation

a synonym for fair wear and tear of a durable asset is

Footing

a total, written in small pencil figures, under the last entry in a column is the

Note receivable

a written promise of a customer to pay the business a sum of money at a future date is called a/an

Liability account

accounts payable is a/an

Asset account

accounts receivable is a/an

Income statement

advertising expense wold be reflected on the

Merchandise

goods purchased for resale at a profit

Net profit

if the total of the operating expenses section of the income statement is smaller than the total of the income section, the difference is

Deferred income

income received but not yet earned is

Income

increases in the owner's equity resulting from business operations is known as

Owes

liabilities are all things a funeral director

Interest

money paid for the use of money is called

Scrap value

that portion of a plant assets original cost that cannot be depreciated is called

Cr.

the abbreviation for credit is

Dr.

the abbreviation for debit is

Balance sheet

the accounts payable account would be shown on the

Closing temporary accounts

the acronym REID is used when

Mark-up

the amount added to the cost of an article to determine the selling price of that article is the

Depreciation expense

the amount of depreciation taken during the current fiscal year is properly termed

Profit and Loss Statement

the amount of revenue from the sale of funeral services would be shown on the

Double entry

the basic accounting theory is based on

$2,000

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 straightline method of depreciation, what would be the yearly amount of depreciation?

Social security

F.I.C.A refers to

Accounts payable

The title of an account which would normally have a credit balance is

Loss

a decrease in net worth due to excess of costs and expenses over income is

Payment

a disbursement is a

Dividend

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

The entry is complete

a double line under the last entry on a T-account means

Petty cash

a fund of currency and coin established for the payment of small amounts of money is

Ledger

a group of accounts constitutes a/an

Accounting

a language of business employed to communicate financial information based upon the recording, classification, summarization, and interpretation of financial data is called

Accounts

a ledger is a book of

Chart of Accounts

a list of accounts that shows the arrangement of the accounts in the ledger is called

Fiscal year

an accounting year ending on some date other than December 31st is called

Increased

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

Decreased

an entry made on the debit side of the proprietorship account indicates that the account has been

Increased

an entry on the credit side of a liability account indicates that the account has been

Increased

an entry on the credit side of a revenue account indicates the account has been

Closed

an entry on the credit side of an expense account indicates the account has been

Decreased

an entry on the debit side of a liability account indicates the account has been

Decreased

an entry on the debit side of the owners equity indicates that the account has been

Budget

an estimate of revenue and probably expense for a given period of time is a

Income

an increase in proprietorship as the result of a business transaction is a/an

Income statement

another term for profit and loss statement is

assets, liabilities, proprietorship

appears on the balance sheet

Accounting equation

assets = liabilities + owner's equity is the

Owner's equity = $30,000, net income = $2,000

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.

Double entry

basic accounting theory is based on

cash, accounts receivable, office supplies

current assets

Fixed liabilities

debts that are not due and payable within a year are called

debit and credit

double entry bookkeeping means an entry is made as a/an

Decrease in owner's equity

expense means a/an

Vendor

one who has made a sale is called a/an

Fixed asset

property of a relatively permanent nature used in the operation of a business and not intended for resale is called

debit office supplies and credit accounts payable

purchase of office supplies on credit is recorded by

Gross profit

sales minus cost of goods sold equals

$1100

the beginning balance in the supplies account is $600. During the month an additional $800 worth of supplies were purchased. At the end of the month, an inventory of the supplies found that only $300 remained on hand. What would be the amount of the adjusting entry for the supplies account?

Chronological order

the book of original entry is in

Liabilities

the debts one owes are

Depreciation

the decrease in the value of a fixed asset is called

Gross profit

the difference between cost of goods sold and their selling price is called

Gross margin

the difference between net sales and cost of goods sold

Account balance

the difference between the two sides of an account is called the

Net sales

the difference between total sales and sales returns and allowances is

Working capital

the excess of current assets over current liabilities is called

Liabilities and capital

the group of accounts which you credit when increased are

Assets and expenses

the group of accounts which you debit when increased are

Stockholder

the holder or person owning stock in a corporation is the

Profit

the increase in net worth due to the excess of income over costs and expenses is called

Inventory

the merchandise that a business keeps on hand for sale is the

Closing entries

the only time the debit side of the revenue account is used is when you make

Debit rent expense and credit cash

the payment of rent by cash is recorded

The normal operating cycle

the period of time required to purchse goods and services and turn them back into cash is called

Consignee

the person or business concern to whom a shipment is made is a

Endorser

the person who orders the bank to make payment of a financial instrument is properly termed a/an

Profit

the primary purpose of a business is

Posting

the process of recording information in the ledger is called

Expenses and withdrawals of assets from the business by the owner

the proprietorship of a business may be decreased by

Net income and investment of assets in the business by the owner

the proprietorship of a business may be increased by

Credit side

the right side of a standard account is called the

Proprietor

the sole owner of a business is a

Assets

the things of value owned by a business are

Assets

the things one owns are

Footing

the totaling of a column in a journal or ledger account is called

Debit petty cash and credit cash

to establish a petty cash fund, one would

Debit revenue, credit expense and revenue summary

what would be the closing entry to close the revenue account?

Debit casket coach and credit accounts payable

when a funeral director buys a casket coach on credit, he would

The asset cash is credited

when cash is spent in the acquisition of an asset the impact on the accounting equation is

Not affected

when cash is spent in the acquisition of an asset the net worth of a business is

Accumulated depreciation

which of the following accounts would be used to assist the accountant in an an adjusting entry involving depreciation

Owner's equity, net worth, capital

which of the following represents the difference between the total assets and the total liabilities