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