Acct A110 Ch 1 & 2

Which of the following is not an account in the General ledger? A. assets, B. equipment, C. Accounts payable, D. Drawing, E. Cash

A. Assets

Indicate (+) and (-) Assets, Liabilities, Capital (equity), revenue (fees/sales), expenses, accum. depr., dividends, drawing, accounts receivable, accts. payable, sales returns, supplies, supply expense, prepaid insurance

Assets (+/-) Liabilities (-/+) Capital (equity) (-/+) revenue (fees/sales) (-/+) expenses (+/-) accum. depr. (-/+) dividends (+/-) drawing (+/-) accounts receivable (+/-) accts. payable (-/+) sales returns (+/-) supplies (+/-) supply expense (+/-) prepaid insurance (+/-)

"Paid the rent for the month: $2000." the account debited should be

B. Rent Expense

Which of the following is not an asset account? A. office equipment, B. Prepaid insurance, C. sales, D. inventory, E. cash

C. Sales

A box located to the left of each of several choices that contains either a blank or a check mark and permits the user to select or deselect the choices

Check boxes

Control (+) C Control (+) N Control (+) P Control (+) S Control (+) V Control (+) X Control (+) F

Copy New Print Save Paste Cut Find

The abbreviation for Debit is ___, Credit is ____

Dr, Cr

A "contra capital" account

Drawing account

A list of items that appears immediately below the selected menu

Drop-down menu

A business received a $600 check from one of its account receivable customers as a payment on their account. the resulting journal transaction is:

E. increase an asset, decrease an asset

A compound entry is a journal transaction that has two entries - one debit and one credit

False

Accounts in the general ledger are arranged in alphabetical order

False

If the Supplies asset account had a beginning of the month balance of $9,000 and an end of the month balance of $6,000 then the adjusting entry would be: DEBIT Supply Expense $6,000 and Credit Supplies $6000

False

A Balance sheet proves that Debits = Credits

False, Assets = Liabilities plus Owner's Equity

An increase in an expense account is recorded as a credit

False, Debit

A Trial Balance proves that "Assets = Liabilities + Owner's Equity"

False, Debits = Credits

A Trial Balance proves that "Assets = Liabilities plus Owner's Equity"

False, Dr = Cr

The Depreciation (cost recovery) adjusting entry is DEBIT: Accum. Depr., CREDIT Dep. Exp.

False, Opposite

Total assets is the owner's net investment, or equity in a business

False, Total assets minus liabilities

The adjusting entry recorded in the general journal for Supplies is the balance of Supplies-on-hand at the end of the accounting period

False, amount not used

When the owner of a business withdraws money for personal use, the transaction is recorded as a credit to cash and a debit to accounts receivable

False, debit to drawing account

The amount for Supplies that should appear in the Balance Sheet represents the value of supplies "used up" for the accounting period

False, ending balance

In accounting, Debit means increase

False, means left

When total expenses are greater than total revenues, the company has overdrawn its cash account.

False, net loss

Cash is listed in the Income Statement as well as the balance sheet

False, never in the income statement

Outstanding checks are added to the bank balance when completing a bank reconciliation

False, subtracted

buttons representing options, where the selected option contains a filled circle icon and only one option may be selected

Option buttons

A financial statement that shows the change in net worth of a business

Owner's Equity statement

A Balance sheet reports account ending balances on a specific day (e.g. June 30, 2012)

True

Both Drawing and Accumulated Depreciation are examples of contra accounts

True

Income Statements report for a time period (ex. month, quarter, year or year-to date)

True

The "double entry" bookkeeping system means that every transaction recorded in a journal must have at least one debit and one credit, and total debits must equal total credits

True

The adjusting entry recorded in the General Journal for Prepaid Insurance is the amount insurance expired during the accounting period

True

The difference between a trial balance and post-closing trial balance is that the post-closing trial balance doesn't contain any revenue, expense or drawing accounts

True

The fundamental accounting equation is Assets = Liabilities + Equity

True

The left side of any account, event a contra account, is always the debit side

True

The normal balance for both accounts payable and fees revenue is credit

True

The objective of Closing Entries is to transfer the balances from the Revenue, Expense and Drawing Accounts to the Capital (Equity) Account

True

The term "Normal Balance" means the (+) or increase side of an account

True

a new general ledger account can be added (or changed) while entering a journal entry

True

general ledger accounts cannot be deleted unless the account balance is zero

True

instead of entering an account number in the general journal, you may select the account from a chart of accounts selection list window

True

changes entered in the computer to update general ledger accounts at the end of a fiscal period

adjusting entries

A financial statement that proves assets = liabilities + equity

balance sheet

a financial statement that provides information on the overall financial strength of a business

balance sheet

a report that gets the check book (G/L cash account) balance to equal the bank statement balance

bank reconciliation

a report that reconciles the bank statement balance with the checkbook balance

bank reconciliation

income summary is closed to this account

capital (equity) account

A list of all accounts and account numbers used by a business is referred to as their ____ of _____

chart of accounts

journal entries automatically generated by the computer that close all temporary income statement accounts to the income summary account, close the income summary account to the capital account, and close the drawing account to the capital account

closing entries

a regular interval of time for which a business analyzes its financial information

fiscal period

All accounts and account balances for a business can be found in their ____ ____

general journal

a financial statement that contains revenue and expenses

income statement

a financial statement that provides information on the net income or net loss of a business over a period of time

income statement

A financial statement whose date format is for a period of time (ex. month, quarter, year)

income statement, owner's equity statement

income statement accounts (ex. revenue and expenses) are closed to this account

income summary account

Debit means ___, credit means ____

left, right

a bar displayed continuously on the top line of the screen, showing the menus available

menu bar

buttons arranged in a vertical column along the left side of the display screen that facilitate fast, efficient, and intuitive movement throughout the accounting application

navigation buttons

a report produced after the period-end closing procedure that is completed to verify that debits equal credits in the general ledger accounts

post-closing trial balance

a report that is prepared after completing the adjusting entries, closing entries and financial statements, and proves DR=CR

post-closing trial balance

the process of updating the ledger account balances with all debits and credits from the journal entries

posting

a financial statement used to show the changes that have occurred to the owner's equity during the fiscal period

statement of owner's equity

a bar displayed on the top of the application window that contains icons representing common processing tasks that a user is most likely to perform

tool bar

a brief informational message that automatically appears when the pointer is positioned on a toolbar button

tool tips

a report that lists all the accounts in the general ledger and proves that DR=CR

trial balance