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