Intro to Accounting Final T

Accounts in which the balances are carried over from one accounting period to the next are called:

Real accounts

The statement of owners equity shows assets, withdrawals, and liabilities

False

Dennis, owner of Dennis Golf center, withdrew $900 in cash from the business. Record the transaction by:

debiting Dennis, Withdrawals $900, crediting cash, $900

The twelve-month period a business chooses for its accounting period is a(n)

fiscal year

A chart of accounts

is a listing of all the accounts used by a company

A restrictive endorsement on a check

is the safest endorsement for businesses

Business transactions are first recorded in the

journal

The employee earnings record

keeps track of an individual employee payroll history for a calendar year

Posting is performed by transferring information from the journal to the

ledger

The claims of creditors against the assets are

owners equity

Which form contains information about gross earnings and is given to the employee by January 31

Form W-2

Net pay equals

Gross pay less all deductions

A credit may signify a(n)

increase in capital

Assets are equal to

liabilities+owners equity

Wages exspense

owners equity

Workers compensation insurance is

paid by the employer to protect the employee against job-related injury or death

The person or company to whom a check is payable is called the

payee

To examine in detail the weekly payroll of all employees one would look at the

payroll register

The correct order for closing accounts is

revenue, expenses, income summary, withdrawals

A form used to organize and check data before preparing financial reports is known as a(n)

worksheet

A petty cash fund is set up

to pay for small expenses

Supplies

Asset

Items owned by the business such as land, supplies and Equipment are:

Assets

How does the purchase of office equipment on account affect the accounting equation

Assets increase, liabilities increase

Closing entries are prepared

At the end of the accounting period To clear all temporary accounts to zero To update the Capital balance

To close the Fees earned account

Debit Fees earned Credit income summary

Sally's Spices accrued and unpaid wages are $2,000. Which of the following is the required adjusting entry?

Debit Salaries Expense, $2,000 Credit Salaries Payable, $2,000

To close the Withdrawals account

Debit capital Credit withdrawls

How do you close the expense accounts?

Debit income summary Credit the expense accounts

The adjustment to record supplies used during the period would be:

Debit supplies Expense Credit Supplies

Which tax does NOT have a wage base limit?

FICA-Medicare

The payroll taxes the employer is responsible for are

FICA-Medicare FICA- OASDI

Employers pay the following payroll taxes

FICA-OSADI and State unemployment tax

A fiscal year is always January 1 through December 31

False

All states charge a state income tax

False

On the worksheet, the difference between the debits and credits in the income statement columns would be the ending owners equity balances

False

Only one account is affected in every transaction

False

The four parts of owners equity include capital, liabilities, revenue, and exspense

False

The worksheet is the first financial statement prepared

False

If total liabilities are $18,000 and owners equity is $21,000 the total assets must be

$39,000

Vance Johnson works 44 hours as a coffee barista and earns $17 per hour. Compute her weekly pay assuming an overtime rate of 1.5

$782

Jim Stein's hourly wage is $40 and he worked 42 hours during the week. Assuming an overtime rate of a time and a half Jims gross pay would be

$1,720

Which of the following increases owners equity

An investment by the owner

When recording a transaction in a journal, the account listed first is always the

Debit

Accounts Payable

Liability

The ending figure for capital, used on the balance sheet, will be obtained from:

The statement of owners equity

Which of the following is not a financial statement

Trial balance

Which of the following accounts should NOT be closed to Income Summary at the end of the fiscal year?

Withdrawls

Simpson Golf Academy estimated depreciation on its building at $1,300. The adjusting entry for depreciation of the building would include:

a debit to depreciation expense for $1,300

The accounts payable account is

a liability, and it has a normal credit balance

The balance sheet contains

assets, liabilities, and owners equity

Accounts Receivable

Asset

The bank statement included bank charges. On the bank reconciliation, this item

A deduction from the balance per company books

Which of the following is not an asset

Accounts payable

Journal entries that are needed in order to update account balances for internal business transactions (such as supplies and prepaid rent) at the end of the period are

Adjusting entries

Cash

Asset

Equipment

Asset

The net income or net loss is calculated on the

Income Statement

What type of an account is Wages and Salaries Payable

Liability

These are two parts to FICA

OASDI and Medicare

Closing entries will affect

Owners capital

Advertising Expense

Owners equity

P.Coyote, Drawing

Owners equity

Repair Fees

Owners equity

Gross Earnings are the same as

Regular earnings + overtime earnings

Which of the following accounts would NOT appear on the balance sheet?

Rent Expense

Which of the following items is increased with a credit?

Revenues

Under the Fair Labor Standards Act, for any hours that an employee works over 40 during a work week

The employee is paid time and a half

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

They would be subtracted from the balance of the bank statement

A company could review the ledger if an account balance was needed

True

Accounts Receivable increases on the debit side of the account

True

Adjusting entries must be journalized and posted

True

FICA- Medicare provides for medical benefits after age 65

True

The left side of the accounting equation must always equal the right side of the equation

True

Transactions are listed in chronological (date) order in the journal

True

When an asset expires or is used up, it becomes an expense

True

When an employee's earnings are greater than FICA base limit during the calendar year, no more FICA-OASDI tax is deducted from earings

True