Accounting State Assessment

Amounts that a business must pay in the future are know as

accounts payable

The credit side is the normal balance side of the

accounts payable account

To find the balance due from an individual charge customer, the accountant would refer to the

accounts receivable subsidiary ledger

Office furniture is an example of

an asset

The word equities refers to claims against the assets of a business by

an expenses transaction

After all posting have been made, the total of the schedule of accounts receivable should equal the

balance of the Accounts Receivable account

When precision photographers bought new camera equipment on account

both assets and liabilities increased

The accounting assumption that requires business and personal records be kept separate is

business entity

The balance of a permanent account is

carried forward to the next fiscal period

The debit side is the increase side of the

cash account

Examples of assets are

cash and accounts receivable

Reductions in the amount owed that many businesses offer to charge costumers in return for prompt payment are called

cash discounts

A cash sale of merchandise would be recorded in the

cash receipts ​journal

The form used to a charge customer who returns damaged or unwanted merchandise is

credit memorandum

To record the payment of an invoice when a discount is taken , the accountant would

debit Accounts Payable, credit Purchases Discount and credit Cash

A company made a partial payment on account. to record this transaction, the accountant would

debit accounts payable and credit cash

The specific period of time covered by an accounting report is called

fiscal period

Which of the following is not considered to be a special journal

general journal

The idea that a business will continue to operate in the future is the accounting assumption of

going concern

Debits are use to record

increase in assets decrease in liabilities increase in withdrawals

Credits are used to record

increases in liabilities and owner's equity

The financial affairs of a business and the financial affairs of the owner should be

kept totally separate

The type of business that buys finished products to resell to individuals or other business is called

merchandising business

Capital is

money invested in the business by the owner

The Sales, Returns and Allowances account is presented

on the income statement as a deduction from sales

When equipment is purchased for cash

one asset increases and another assets decreases

Which of the following transactions would be recorded in the purchase journal?

the purchases of merchandise on account and the charge purchase of equipment

In a firm that uses special journals, credit sales of merchandise are recorded in

the sales journal

If a business uses special journal, which of the following transactions would not be recorded on the general journal

the sales of merchandise on account

The activities a business completes to keep it's records in order are called

the accounting cycle

During one month, a company had sales of $27,500, sales discount of $1,000, and sales returns and allowances if $400. It's net sales were

$26,100

Merchandise sold on credit for $300 plus 5 percent sales tax. the entry in the sales journal will include a debit to accounts receivable for

$315

If a business has assets of $45,670 and liabilities of $12,845 the owner's equity is

$32,825 45,670-12,845= 32,825

Scott realty has accounts receivable of $3,350, equipment totaling$5,700, liabilities of $900, and owner's equity of $12,300. it's cash in the bank equals

$4,150 add the accounts receivable and equipment together and the liabilities and owner's equity together subtract the two totals to get the cash

Evan's engineering has the following accounts: accounts payable, $1,200; accounts receivable, $1,600; building , $60,000; cash in the bank, $2,000; equipment,$8,000; land, $10,000 and supplies, $7,000. owner's equity is

$81,100

Nine days after a firm sold merchandise with an invoice price of $1,000 on a credit terms of 2/10, n/15, the firm received a check from the customer. The amount of the check was

$980

The Purchases Returns and Allowances account is classified as

a contra cost of merchandise account

The entry to record the return of defective merchandise to the supplier would include

a credit to Purchase Returns and Allowances

The purchases of merchandise on account requires

a debit to Purchases​ and a credit to Accounts Payable

The journal entry to record the payment of monthly utility bill would include

a debit to utilities expense and a credit to cash

When a business pays cash for salaries, there is a decrease in assets and

a decrease in owner's equity

The sales account is classified as

a revenue account

The source document for an entry in the cash receipts journal is the

receipt

In which of the following transaction would both an asset and owner's equity increase?

received payment of services provided

The account used to record increases in owner's equity from the sale of goods or services is the

revenue account

Which of the following have normal credit balances?

sales and Jane Smith capital

An example of a permanent account is

supplies

The purchases account is a

temporary account

Revenue, expenses and drawing accounts are called

temporary accounts

The total of the balances of the creditors accounts should agree with

the Accounts Payable account