Final accounting
maker's address
1344 s. hoyne ------ example
credit to Cash for $269
A Petty cash Fund established with a $300 balance has petty cash receipts totaling $269 and cash in the amount of $31. The entry to replenish the fund would include a
fiscal year
A ____________ is a fiscal period consisting of twelve consecutive months
debit Wages Expense, 12,000; credit Wages Payable, 12,000
A business pays weekly wages of $12,000 on Friday for a five-day week ending on that day. If the fiscal period ends on Wednesday, the adjusting entry is
a liability
A depositor's Cash account is carried on the books of the bank as
balance sheet
A financial statement that reports assets, liabilities, and owner's equity on a specific date.
F
A fiscal period must begin on January 1 T or F
Check Number
A number identifies each personal check, found at the top right of a personal check that identifies that specific check.
signature card
A person authorized to write checks drawn on a checking account at a bank must sign and have on file with the bank a
Payee
A person to whom a check is written
fiscal period
A_________ is any period of time covering a complete accounting cycle
petty cash voucher
A____________ should be used to account for every payment from the fund
contra account
Account that is contrary to or a deduction from another account
accrued wages
Amount of unpaid wages owed to employees for the time between the end of the last pay period and the end of the fiscal period.
trade-in value
Amount that one would expect to be the value of an asset when its estimated life is over
debit to wages expense, $750
Assume that Sophia Co. pays its employees $250 per day and that pay day falls on Friday. Sophia Co. employees work Monday through Friday. Assume the last day of the fiscal period falls on Wednesday, the adjustments for accrued wages would be recorded in the work sheet as a :
assets are shown as debits
Assuming a normal balance, which of the following is correct concerning the balance sheet columns of the work sheet?
The Drawing account should be closed into the __________ account
Capital
credit to Income from services , $35,000
Cash, $20,000 Accounts Receivable, $2,500 Prepaid Insurance, $3,500 Equipment, $15,000 Accumulated Depreciation, $ 2,000 Accounts Payable, $4,000 J. tomas, Capital, $30,000 J. Tomas, Drawing, $10,000 Income from services, $35,000 Wages Expenses, $12,000 Rent expense, $8,000
after adjusting entries
Closing entries are prepared
temporary accounts
Closing entries are prepared to close the
Collins Co. should record the insurance expenses in April
Collins Co. uses the cash basis of accounting. Collins Co. prepays cash in April for insurance that covers only the month of May. Which of the following is true?
$8,000
Dowdy Co. has equipment with a cost of $30,000 and accumulated depreciation of $22,000. What is the book value of the equipment?
debits
Entries to expenses such as Rent Expense are usually
Petty Cash Fund $150 Cash $150
Henry Co. establishes a Petty Cash Fund of $150. The journal entry to establish the fund would be :
T
If revenue and expenses were equal for an accounting period, the result would be neither a profit nor a loss? T or F
all of the answers listed
Internal control is the system of policies and procedures that is designed to:
payable
Liabilities often have the word __________ in their account title.
decrease of $7,000
Net income for a company is $35,000 for the current year. The owner withdrew $3,500 per month for personal expenses. The owner's Capital account will show a net
check date
Tells the bank the length of time used in the processing of the check as well as the day of purchase.
debit to Depreciation Expense
The adjusting entre to record depreciation would involve a
credit to Income Summary
The entry to close revenue would involve a
general ledger
The post-closing trial balance is best prepared from the
expense, income summary
The second step in the closing process is to close the __________ accounts in the ____________ accounts
expenses have been incurred but not yet been recorded
The term, accrued wages, means that
drawer, payee, and bank
The three parties to a check are the
accrual basis of accounting
The___________ requires that revenue is recorded when earned and expenses are recorded when incurred
cash basis of accounting
The____________ requires that revenue is recorded when it is received in cash and expenses are recorded when they are paid in cash?
fiscal year
Twelve consecutive months used by a business as it annual accounting period
Service or goods have been delivered
Under the accrual basis of accounting, revenues are reported in the accounting period when the
address of the payee
Which data are generally NOT included on a check?
owner's capital
Which of the following accounts is NOT adjusted?
Cash, Prepaid Insurance, Notes Payable
Which of the following are all permanent accounts?
revenue, expenses, and the Owner's Drawing
Which of the following are all temporary accounts?
capital is shown as a credit in the balance sheet columns
Which of the following is correct concerning the work sheet?
make sure that all cash payments are made by check ( with the exception of petty cash)
Which of the following represents good internal control procedures concerning cash payments?
source documents, journal, ledger, work sheet, financial statements
Which of the following sequences of documents or records describes the proper sequence in the accounting cycle?
April 1, 20-- to March 31, 20--
Which of the following would be considered a fiscal year?
work sheet
Working paper that is used to record adjustments and gather information to prepare the financial statements
Interim statements
____________ are prepared during the fiscal year and cover a period of time less than twelve months
debit an asset account and credit an asset account
a business buys office equipment for cash. What effect will this transaction have on the accounts?
an independent contractor
a person who performs a service for a fixed amount and is not under the specific direction of the party being served is called
transposition
a------means that the digits of a number have been switched around
two
accounting entries involve a minimum of how many accounts?
liabilty
accounts payable is a
liabities
amounts owned by a business are referred to as
T
an account balance is the difference between total debits and total credits is an account
resources owned by a company are reported on the balance sheet and are referred to as
asset
cost
assets are usually reported on the balance sheet at which amount?
owners equity
assets minus liabilities equals
a decrease in the fair market value of an asset
depreciation is
transposition
e accountant recorded income from services as $4,500 when it should have been recorded as $4,050th
credits
entries to revenues accounts such as service revenues are usually
when thy are incurred
expenses are recorded
accrued wages are wages that
have been earned by employees but not paid
equipment and capital
if an owner invests her computer and printer in the business, there is an increase to
liabilities section
if the number of an accountant is 211 this probably means that the account is the first account in the
total assets are unaffected
newton company bought equipment, paying cash $25,000. Which of the following is true in regards to the fundamental accounting equation?
liabilites
obligations are reported on the balance sheet and are referred to as
asset
prepaid insurance is an
an example of a owners equity is
rent expense
F
revenue has the effect of decreasing owner's equity
net income
revenues minus expenses equals
chart of accounts
the ---------is the official list of accounts for the business
slide
the accountant recorded accounts payable as $45,00 when it shouldve been recorded as $4,500
assets=liabilities+owner's equity-drawing+revenue-expenses
the expanded accounting equation is
income statement
the financial statement that reports the revenues and expenses for a period of time such as a year or a month is the
all of the answers listed
the heading of all financial statements include
T
the left side is always the debit side
chart of accounts
the listings of all of the accounts available for use in a company's accounting system is known as
ABA number
the number printed on a check to identify the specific bank on which the check is drawn
equity
the owner's right, claim, or financial interest is referred to as
increase to total assets and increases total libilities
the purchase of an asset on account will
increasing an asset and increasing a liabilty
the purchase of office equipment on account would involve
income statement
the------shows total revenue minus total expenses
balance sheet
the-----shows the financial position of a company
statement of owner's equity
the----shows how and why the owner's equity account has changed over a sated period of time
Expense Matches The Revenues Or Is Used Up
under the accrual basis of accounting, expenses are recorded in the accounting period when the
liability
unearned revenues is what type of account?
debit
what will usually cause an asset account to increase?
credit
what will usually cause the liability account accounts payable to increase?
on the side with the larger total
when a T account has several items on both sides, the balance of the account is written
credited
when a company pays a bill, the account cash will be
cash and capital
when an owner deposits cash in an amount in the name of the business, it is an increase to
debited
when cash is received, the account cash will be
debit D. Bill, drawing and credit cash
which of the following entries records the withdrawal of cash for personal use by D. Bill, the owner of a business?
assets=Liabilties+Owners equity
which of the following equations is the fundamental accounting equation?
revenues
which of the following is not considered an account?
debit
which term is associated with "left" or leftside
credit
which term is associated with "right" or rightside