STATE ACCOUNT QUIZIZIZIZIZZIZIIZIZIZI
Which financial statement represents the accounting equation? a. Worksheet b. Income Statement c. Statement of Owner's Equity d. Balance Sheet
Balance Sheet
G. Paris, Capital Normal Balance
Balance sheet
Rental Income Normal Balance
Balance sheet
The endorsement transferring ownership of a check is the _______ endorsement. a. Blank b. Special c. Restrictive d. Duel
Blank
Notes Payable Financial Statement
CR
wages payable account Normal Balance
CR
Rental Income Financial Statement
CRedit
G. Paris, Capital Financial Statement
Credit
Building Normal Balance
DR
G. Paris, Drawing Financial Statement
DR
Office Furniture Normal Balance
DR
Prepaid Advertising Normal Balance
DR
Repairs Expense Normal Balance
DR
Accounts Receivable Normal Balance
Debit
Cash Normal Balance
Debit
Prepaid Rent Normal Balance
Debit
Supplies Normal Balance
Debit
Utilities Expense Normal Balance
Debit
Repairs Expense Classification
E
Utilities Expense Classification
Expense
The governing body determining accounting policies and procedures is primarily a. GAAP b. AICPA c. FASB d. FED
FASB
A check that has been written but not yet cleared your bank account is known as a(n) a. canceled check b. transferred check c. outstanding check d. voided check
outstanding check
An increase in equity resulting from the sale of goods or services is called a. investment b. capital c. expense d. revenue
revenue
(t/f) A debit can represent an increase or decrease to an account's balance.
t
(t/f) A debit decreases a revenue account while a credit increases a revenue account.
t
(t/f) A debit increases an asset account's balance while a credit decreases an asset account's balance
t
(t/f) A debit increases an expense account's balance while a credit reduces an expense account's balance.
t
(t/f) All permanent accounts have a normal balance that is either a debit balance or a credit balance.
t
(t/f) CPA stands for Certified Public Accountant.
t
(t/f) Contra asset accounts will have a credit balance.
t
(t/f) Debits and credits are the accounting terms used to identify the left and right sides of an account.
t
(t/f) Every accounting transaction must have at least one debit and one credit.
t
(t/f) Expense accounts will have a normal debit balance.
t
(t/f) Expense and drawing accounts normally have a debit balance.
t
(t/f) Liability and Equity accounts normally have credit balances.
t
(t/f) Revenue accounts normally have a credit balance.
t
(t/f) The "right side" of an account's structure is the credit side
t
(t/f) To adjust the Supplies account, you would debit Supplies Expense.
t
(t/f) Whether a debit or credit increases or decreases an account's balance depends on the type of account.
t
(t/f) You increase a revenue account with a credit.
t
Temporary capital accounts start each fiscal period with ______. a. debit balances b. credit balances c. zero balances d. both debit and credit balances
zero balances
Building Financial Statement
BS
Notes Payable Normal Balance
BS
Office Furniture Financial Statement
BS
Prepaid Advertising Financial Statement
BS
Prepaid Rent Financial Statement
BS
Wages Payable Financial Statement
BS
closing entries
journal entries used to prepare temporary accounts for a new fiscal period
Accounts Payable Classification
liability
Income Summary Normal Balance
none
If liabilities total $2,000 and the owner's equity totals $18,000, the asset value is ______. a. $ 2,000 b. $16,000 c. $18,000 d. $20,000
$20,000
Building Classification
A
Office Furniture Classification
A
Prepaid Advertising Classification
A
Prepaid Rent Classification
A
Income statement
A financial statement showing the revenue and expenses for a fiscal period.
The accounting concept stating that the amount paid for assets is the amount recorded in the accounting journals is the a. Objective Evidence concept b. Historical Cost concept c. Consistent Reporting concept d. Materiality concept
Historical Cost concept
Repairs Expense Financial Statement
IS
Utilities Expense Financial Statement
Income statement
Which of the following represents the correct order of the Accounting Cycle? a. Journalizing, Posting, Financial Statements, Worksheet b. Posting, Journalizing, Financial Statements, Worksheet c. Posting, Journalizing, Worksheet, Financial Statements d. Journalizing, Posting, Worksheet, Financial Statements
Journalizing, Posting, Worksheet, Financial Statements
Notes Payable Classification
L
Wages Payable Classification
L
Performing adjusting entries to bring asset account balances up to date is an application of what accounting concept? a. Business Entity b. Going Concern c. Matching Expenses with Revenues d. Realization of Revenue
Matching Expenses with Revenues
Income Summary Financial Statement
N
G. Paris, Drawing Normal Balance
N or BS
G. Paris, Drawing Classification
OE
Income Summary Classification
OE
G. Paris, Capital Classification
Owner's Equity
Paying cash for insurance will result in a debit to a. Prepaid Insurance b. Insurance Expense c. Cash d. Capital
Prepaid Insurance
Which of the following is a permanent account? a. Rent Expense b. Drawing c. Fees Revenue d. Prepaid Insurance
Prepaid Insurance
Rental Income Classification
Revenue
Which financial statement is a depiction of the fundamental accounting equation? a. Income Statement b. Statement of Owner's Equity c. Balance Sheet. d. Profit and Loss Statement.
c. Balance Sheet.
Which of the following does not result in the recording of an expense? a. Withdrawal of cash by the owner b. Payment of wages to employees c. Supplies being used by the business d. Gas being pumped into the company car
Withdrawal of cash by the owner
Which of the following is not considered a permanent record of a business? a. Worksheet b. Journal c. Ledger d. Balance Sheet
Worksheet
Which of the following statements is true? a. The Income Summary account is an owner's equity account. b. The Income Summary account has a normal debit balance. c. The Income Summary account is a permanent account. d. The Income Summary account is used throughout the accounting period.
a The Income Summary account is an owner's equity account.
Debits are used to record a. increases in assets. b c. increases in owner's equity. d. increases in liabilities.
a increases in assets
The process of originally recording a business transaction in the accounting records is termed a. journalizing. b. footing. c. posting. d. balancing
a journalizing.
If an account starts with the Number 4, it represents a(n) a. revenue account. b. expense account. c. capital account. d. liability account
a revenue account.
financial statement
a summary of all the financial transactions that have occurred over a particular period
The account used to record increases in owner's equity from the sale of services is a. the revenue account. b. the cash account. c. the capital account. d. the drawing account.
a the revenue account.
All asset account ID's will begin with what number? a. 1 b. 2 c. 3 d. 4
a. 1
Separating the owner's personal records from those of the business represents the a. Business Entity concept b. Going Concern concept c. Consistent Reporting concept d. Objective Evidence concept
a. Business Entity concept
Recording income when it is earned and expenses when they are incurred is called the a. accrual basis of accounting b. cash basis of accounting c. credit basis of accounting d. generally accepted basis of accounting
a. accrual basis of accounting
. A lost check with a blank endorsement on it can be cashed by ______. a. anyone who has the check b. only the person whose name follows the words "Pay to the order of" c. only the person who endorsed the check d. no one
a. anyone who has the check
. The normal balance of an expense account is the ______. a. debit side b. credit side c. right side d. none of these
a. debit side
Debits are used to record ______. a. increases in assets and expenses b. increases in assets and liabilities c. increases in expenses and revenues d. increases in expenses and capital
a. increases in assets and expenses
The process of originally recording a business transaction in the accounting records is termed ______. a. journalizing b. footing c. posting d. balancing
a. journalizing
Accounts used to accumulate information from one period to the next are a. permanent accounts b. temporary accounts c. revenue accounts d. expense accounts
a. permanent accounts
To decrease an asset, you should record an amount to that account's a. right side b. left side c. increase side d. normal balance side
a. right side
The account used to record increases in owner's equity from the sale of services is ______. a. the revenue account b. the cash account c. the capital account d. the drawing account
a. the revenue account
Petty Cash
an amount of cash kept on hand and used for making small payments
Accounts Receivable Classification
asset
Cash Classification
asset
Supplies Classification
asset
Which of the following accounts would not appear on the Post-Closing Trial Balance? a. Accounts Receivable b. Advertising Expense c. Accounts Payable d. J. Jones, Capital
b Advertising Expense
The entry in a firm's accounting records for a credit customer's check that was returned by the bank marked "NSF" would include a. a debit to Miscellaneous Expense and a credit to Cash. b. a debit to Accounts Receivable and a credit to Cash. c. a debit to Cash and a credit to Miscellaneous Expense. d. a debit to Cash and a credit to Accounts Receivable.
b a debit to Accounts Receivable and a credit to Cash.
In the sequence of procedures performed during the accounting cycle, the financial statements are prepared a. prior to preparing a work sheet. b. after completing the work sheet. c. after all posting is completed. d. after preparing a post-closing trial balance.
b after completing the work sheet.
The journal entry to adjust the Prepaid Insurance account is a. debit Prepaid Insurance; credit Insurance Expense. b. debit Insurance Expense; credit Prepaid Insurance. c. debit Income Summary; credit Prepaid Insurance. d. debit Insurance Expense; credit Income Summary.
b debit Insurance Expense; credit Prepaid Insurance.
What two types of transactions increase owner's equity? a. investments and withdrawals b. investments and revenue c. investments and expenses d. investments and assets
b investments and revenue
The total of the figures on the left side of a Cash account is $25,800. The total of the figures on the right side is $14,100. The balance of this account a. is $11,700 and would be recorded on the credit side of the account. b. is $11,700 and would be recorded on the debit side of the account. c. is $39,900 and would be recorded on the credit side of the account. d. is $39,900 and would be recorded on the debit side of the account.
b is $11,700 and would be recorded on the debit side of the account.
Accounts that are continuous from one accounting period to the next and their balances are carried forward are referred to as a. fiscally continuous accounts. b. permanent accounts. c. signature accounts. d. temporary accounts.
b permanent accounts
The process of transferring information from the journal to the individual general ledger accounts is called a. journalizing. b. posting. c. transferring. d. closing.
b posting.
The financial statement showing financial progress for the fiscal period is the a. Balance Sheet b. Statement of Owner's Equity c. Income Statement d. Post-Closing Trial Balance
c. Income Statement
The financial statements of a business entity a. include the balance sheet, income statement, and income tax return. b. provide information about the profitability and financial position of the company. c. are the first step in the accounting process. d. are prepared for a fee by the Financial Accounting Standards Board
b provide information about the profitability and financial position of the company.
Owner's equity is a. the amount taken out of a business by the owner for personal use. b. the financial interest of the owner of a business. c. the amount the owner invested in the business. d. the revenues less the expenses.
b the financial interest of the owner of a business.
The most appropriate form of endorsement of a check for business purposes is a. the blank endorsement. b. the restrictive endorsement. c. the full endorsement. d. the special endorsement.
b the restrictive endorsement.
The total of the figures on the left side of a cash account is $130,600. The total of the figures on the right side is $87,000. The balance of this account is ______. a. $43,600 and would be recorded on the credit side of the account b. $43,600 and would be recorded on the debit side of the account c. $217,600 and would be recorded on the credit side of the account d. $217,600 and would be recorded on the debit side of the account
b. $43,600 and would be recorded on the debit side of the account
Which of the following accounts is a permanent account? a. S. Grumpy, Drawing b. S. Grumpy, Capital c. Sales d. Advertising Expense
b. S. Grumpy, Capital
The normal balance of a revenue account is the ______. a. debit side b. credit side c. left side d. none of these
b. credit side
. The Balance Sheet of Amber's Designs includes the following items: Office Furniture Cash Supplies Accounts Payable M. Amber, Capital Accounts Receivable M. Amber, Drawing Truck The list includes ______. a. four assets and three liabilities b. five assets and one liability c. five assets and two liabilities d. five assets and three owner's equity
b. five assets and one liability
Posting a credit to a vendor's liability account will a. decrease the amount you owe the vendor b. increase the amount you owe the vendor c. increase the amount the vendor owes you d. decrease the amount the vendor owes you
b. increase the amount you owe the vendor
The process of transferring information from the journal to the individual general ledger accounts is called ______. a. journalizing b. posting c. transferring d. closing
b. posting
An endorsement on the back of a check consisting of the words "Pay to the order of" and a new check owner's name is a ______. a. blank endorsement b. special endorsement c. restrictive endorsement d. deposit endorsement
b. special endorsement
Owner's equity is ______. a. the amount taken out of a business by the owner for personal use b. the financial interest of the owner of a business c. the amount the owner invested in the business d. the revenues less the expenses
b. the financial interest of the owner of a business
Net Income is best described as ______. a. cash receipts less cash payments made during a given accounting period b. the increase in owner's equity resulting from profitable business operations during an accounting period c. the increase in total assets over a given accounting period d. revenue earned during an accounting period, less any cash payments made during the period
b. the increase in owner's equity resulting from profitable business operations during an accounting period
An Income Statement is designed to show ______. a. how much a business is worth b. the profitability of the business during the current fiscal period c. the value of assets, liabilities, and owner's equity in the business on a particular date d. all the changes to owner's equity that occurred during the fiscal period
b. the profitability of the business during the current fiscal period
Accounts Payable Financial Statement
balance sheet
Accounts Receivable Financial Statement
balance sheet
Cash Financial Statement
balance sheet
Supplies Financial Statement
balance sheet
Which financial statement is a depiction of the fundamental accounting equation? a. Income Statement b. Statement of Owner's Equity c. Balance Sheet d. Profit and Loss Statement
c Balance Sheet
Which of the following accounts is not a permanent account? a. Cash b. Accounts Payable c. Salaries Expense d. Thomas Bernard, Capital
c Salaries Expense
The journal entry to close the expense accounts is a. debit Income Summary; credit Owner's Capital. b. debit each expense account; credit Income Summary. c. debit Income Summary for the total expenses; credit each expense account. d. none of the above.
c debit Income Summary for the total expenses; credit each expense account.
In accounting, the terms debit and credit indicate, respectively: a. increase and decrease b. decrease and increase c. left and right d. right and left
c left and right
A balance sheet is designed to show a. how much a business is worth during the current fiscal period. b. the profitability of the business during the current fiscal period. c. the value of assets, liabilities, owner's equity in the business on a particular date. d. the cost of replacing the assets and of paying off the liabilities at the end of the fiscal period
c the value of assets, liabilities, owner's equity in the business on a particular date.
Temporary capital accounts start each fiscal period with a. debit balances. b. credit balances. c. zero balances. d. both debit and credit balances.
c zero balances.
A journal consists of ______. a. a separate page or "account" for each type of asset, liability, and element of owner's equity b. a listing of the balances of each ledger account to determine the equality of debit and credit entries c. a chronological record of individual business transactions d. a storage center of information within a computer-based accounting system from which data can be retrieved and arranged in any desired format
c. a chronological record of individual business transactions
Using an EFT to make a payment for your electric bill will result in a. a debit to Cash and a credit to Services Revenue b. a debit to Cash and a credit to Utilities Expense c. a debit to Utilities Expense and a credit to Cash d. a debit to Accounts Receivable and a credit to Cash
c. a debit to Utilities Expense and a credit to Cash
Posting a $2,500 credit to an asset account with a $4,700 debit balance results in a a. credit balance of $2,200 b. credit balance of $7,200 c. debit balance of $2,200 d. debit balance of $7,200
c. debit balance of $2,200
The left side of an Owner's Equity account is the a. normal balance side b. increase side c. decrease side d. credit side
c. decrease side
Cash Short and Over is classified as a(n) ______. a. asset b. liability c. expense d. owner's equity
c. expense
In accounting, the terms debit and credit indicate, respectively ______. a. increase and decrease b. decrease and increase c. left and right d. right and left
c. left and right
Accounts Payable Normal Balance
credit
The entry to transfer a net loss to the Capital account would include a. a debit to Capital and a credit to Cash. b. a debit to Drawing and a credit to Capital. c. a debit to Income Summary and a credit to Capital. d. a debit to Capital and a credit to Income Summary.
d a debit to Capital and a credit to Income Summary.
At the end of a fiscal period, the first closing entry will be to close a. expense accounts into the Income Summary account. b. the withdrawal account into the Capital account. c. revenue accounts into the Capital account. d. revenue accounts into the Income Summary account.
d revenue accounts into the Income Summary account.
If expenses exceed revenue during a given fiscal period, a. assets will decrease more than liabilities. b. owner's equity will decrease more than assets. c. the Cash account will decrease. d. the Income Statement will show a net loss.
d the Income Statement will show a net loss.
Which of the following accounts is an asset? a. Insurance Expense b. Owner's Drawing c. Fees Earned d. Prepaid Rent
d. Prepaid Rent
The essential point of the double-entry system of accounting is that every transaction ______. a. affects accounts on both sides of the balance sheet b. is recorded in both the journal and the ledger c. increases one ledger account and decreases another d. affects two or more ledger accounts and is recorded by an equal dollar amount of debits and credits
d. affects two or more ledger accounts and is recorded by an equal dollar amount of debits and credits
The financial affairs of a business and the financial affairs of the owner(s) should be ______. a. combined in the firm's accounting records b. reported in different parts of the firm's accounting records c. combined only if the owner wants them to be d. kept totally separate
d. kept totally separate
If an account number starts with the number 2, it represents a(n) ______. a. revenue account b. expense account c. owner's equity account d. liability account
d. liability account
If a business pays cash for a new truck, which of the following statements is true? a. one asset increases and one liability decreases b. one asset increases and owner's equity increases c. one asset decreases and owner's equity decreases d. one asset increases and another asset decreases
d. one asset increases and another asset decreases
The amount closed to Capital from Income Summary represents a. the beginning capital account balance b. the ending capital account balance c. the amount of withdrawals made during the fiscal period d. the net income or loss during the fiscal period
d. the net income or loss during the fiscal period
. What two types of transactions decrease owner's equity? a. investments and withdrawals b. withdrawals and revenues c. revenues and expenses d. withdrawals and expenses
d. withdrawals and expenses
The journal entry to close the revenue accounts is a. debit Income Summary; credit Owner's Capital b. debit each revenue account; credit Income Summary for the total revenue c. debit Income Summary for the total revenue; credit each revenue account d. debit Owner's Capital, credit Income Summary
debit each revenue account; credit Income Summary for the total revenue
(t/f) A credit always increases an account's balance.
f
(t/f) A debit always increases an account's balance
f
(t/f) A debit decreases an expense account while a credit increases an expense account
f
(t/f) A debit increases a liability account while a credit decreases a liability account
f
(t/f) Assets normally have a credit balance
f
(t/f) Contra asset accounts normally have debit balances.
f
(t/f) Debits are always an increase to an account.
f
(t/f) Debits do not always have to equal credits.
f
(t/f) Drawing is closed to the Income Summary account.
f
(t/f) Liabilities are increased by a debit
f
(t/f) Liability, equity, and revenue accounts normally have a debit balance.
f
(t/f) On the Worksheet, if the total of the Income Statement debit column is greater than the total of the Income Statement credit column, the company earned net income
f
(t/f) The "left side" of an account represents the credit side.
f
(t/f) The account number for Accounts Payable will begin with a 4
f
(t/f) The owner's capital account is a temporary account.
f
(t/f) The right side of an account represents the increase side.
f
(t/f) When posting, the reference G5 in the General Ledger indicates the transaction occurred on the 5th day of the month.
f
(t/f) Writing a check to a vendor for a prior purchase results in a credit to Accounts Payable
f
Journalizing Transactions
is the process of recording a business transaction in the accounting records
