Accounting
Credit terms of 1-10, n- 30 mean that
1% discount is allowed if the bill is paid within 10 days or the entire amount is due within 30 days
Samuel purchased a truck for 25,000 with a residual value of 5000 and a life expect and see if five years. The deprication for a year would be
4,000
A chart of accounts is?
A listing of all the accounts used by a company
Which account is the controlling account for the amounts owed to individual creditors?
Accounts payable
The accounts receivable account is
An asset with a normal debit balance
Cost of goods sold is?
An expense account from selling merchandise
What type of account is the petty cash fund?
Asset
The basic accounting equation is
Assets equal liabilities plus owners equity
Accounts payable would appear on which financial statement?
Balance sheet
The amounts invested into the company by its owner sometimes referred as paid in capital?
Capital stock
When a cell phone bill is paid which of the following entries would be recorded?
Cell phone expense, indented cash
A business organized understate or federal statuses as a separately entity?
Corporation
To close the withdrawal account?
Debit capital, credit withdrawal
The adjusting entry to record deprecation for office equipment would be?
Debit deprecation expense, office expense. Credit accumulative deprecation, office equipment.
Home improvement bought painting equipment on account for 3500. The entry would include
Debit equipment, credit accounts payable
The left side of any account is the
Debit side
The return of merchandise is to the supplier for credit using perpetual inventory system would include a?
Debit to accounts payable. Credit to merchandise inventory
Owners withdrawls
Decrease owners equity
Distributions of earnings of a corporation to its owners?
Dividends
An accounting report that shows business results in terms of revenue and expenses is?
Income statement
Which of the following is a characteristic of a sole proprietorship?
It is easy to form
Which of the following would be considered a book of original entry?
Journal
Plant and equipment are?
Long lives assets used in the production or cells of goods or services
The debit recorded in the journal to establish the petty cash fund is to
Petty cash
The final step in the accounting cycle is the?
Post closing trial balance
Internal control over a companies assets should include the following policies?
Responsibilities and duties of employees will be divided. All cash payments will be made by check. All cash receipts will be deposited into bank the same day they arrive. (All of the above)
Which of the following accounts would be considered a temporary account?
Revenue, expenses, and withdrawals
The revenue account for merchandise firm is called?
Sales
A summary of the changes in the earnings retained in a corporation for a specific period of time. The statement that shows the amount of income kept by the corporation.
Statement of retained earnings
The stockholders rights to the assets of a business
Stockholders equity
Bank reconciliation
The process of checking the bank balance on the bank statement versus the company checkbook balance
The verification of the total dollar amount of the debits equals the total dollar amount of the credits in a ledger is called
Trial balance
A debit may signify a(n)
decrease in liability accounts
The term "FOB" means
free on board
If Sue to dream toys revenues are greater than expenses during the accounting period?
A net income is earned
A trial balance difference divisible by nine could indicate
A transposition error only
A system that measures the activities of a business in financial terms is?
Accounting
The process that begins with recording business transactions into a journal and ends with the completion of a post closing trial balance is the
Accounting cycle
Which of the following is not an asset?
Accounts payable
Which of the following would be an example of a contra-asset?
Accumulative deprecation
Bringing account balances up-to-date before preparing financial reports is called
Adjusting
An adjustment that is made to allocate the cost of a building over its expected life is called
Deprecation
The goods a company has available to sell to its customers are called?
Merchandise inventory
The correct order for closing accounts is?
Revenue, expenses, income summary, withdrawals
A reduction given to customers for early payment is?
Sales discount
The purpose of closing entries is to?
Set temporary account balances to zero to begin the next period and update the capital account.
How are credits distinguished from debits in the journal
indenting
A form used to organize and check data before preparing financial reports is known as
worksheet