Compendium- ARTS
2- Owner's equity = $30,000, 3- Net income = $2,000
At the end of the month, a funeral home's assets totaled $50,000; the liabilities totaled $20,000; revenue for the month totaled $6,000; and the total of the expenses amounted to $4,000. Which of the following statements is true: 1- Owner's equity = $70,000 2- Owner's equity = $30,000 3- Net income = $2,000 4- Net loss = ($2,000)
social security
F.I.C.A. refers to
Debit office supplies and credit accounts payable
Purchase of office supplies on credit is recorded by
Double entry accounting or bookkeeping
The process of recording equal debits and credits for a single business transaction
A. accumulated depreciation
Which of the following accounts would be used to assist the accountant in an adjusting entry involving depreciation: A. Accumulated depreciation B. Automobile expense C. Automobile carry over from previous year D. Allowance for doubtful accounts
1, 2 and 4 only
Which of the following represents the difference between the total assets and the total liabilities: 1- Owner's equity 2- Net worth 3- Net income 4- Capital
B. Land
Which one of these does not qualify as a current asset: A. Cash B. Land C. office supplies D. accounts receivable
journal
a book in which the daily transactions of a business are first written is the
loss
a decrease in net worth due to excess of costs and expenses over income is
expense
a decrease in owner's equity resulting from a business transaction is a/an
payment
a disbursement is a
divident
a distribution of profits of a corporation to its stockholders as declared by the board of directors
the entry is complete
a double line under the last entry on a t account means
accounting
a language of business employed to communicate financial information based upon the recording, classification, summarization, and interpretation of financial data is called
accounts
a ledger is a book of
chart of accounts
a list of accounts that shows the arrangement of the accounts in the ledger is called
invoice
a paper showing quantity, description, prices of items, total amount of purchase, and terms of payment is a/n
payee
a person or company who will receive payment on a promissory note, check, draft or money order is called the
drawee
a person or concern, usually a bank, that has been ordered to make payment on a check or draft is called the
creditor
a person to whom a debt is owed is called a
drawer
a person who signs a check or draft ordering payment to be made is called the
$2,000
a plant asset was purchased by the funeral home costing $8,000. it has a useful life of 3 years and a salvage value of $2,000. using the straight line method of depreciation, what would be the yearly amount of depreciation?
at any time
a profit and loss statement can be prepared
depreciation
a synonym for fair wear and tear of a durable asset is
overhead
a term which is used synonymously with operating expense is
footing
a total, written in small pencil figures under the last entry in a column is the
liability account
accounts payable is a/an
asset account
accounts receivable is a/an
liabilities and capital
accounts which when credited increase
income statement
advertising expense would be reflected on the
fiscal year
an accounting year ending on some date other than December 31st is called:
increased
an entry made on the debit side of an asset account indicates that the account has been
increased
an entry made on the debit side of an expense account indicates that the account has been
decreased
an entry made on the debit side of the proprietorship accounts indicates that the accounts have been
increased
an entry on the credit side of a liability account indicates the account has been
increased
an entry on the credit side of a revenue account indicates the account has been
closed
an entry on the credit side of an expense account indicates the account has been:
decreased
an entry on the debit side of a liability account indicates the account has been
decreased
an entry on the debit side of the owner's equity indicates that the account has been
budget
an estimate of revenue and probable expense for a given period of time is a
income
an increase in proprietorship as the result of a business transaction is
income statement
another name for a profit and loss statement is
income statement
another term for profit and loss statement is:
fundamental accounting equation
assets = liabilities + owner's equity is the
fixed liabilities
debts that are not due and payable within a year are called
as a debit and a credit
double entry bookkeeping means an entry is made
decrease in owner's equity
expense means that there is a/an
note receivable
from the point of view of the business - a written promise of a customer to pay that business a sum of money at a future date is a/an:
merchandise
goods purchased for resale at a profit
intangible asset
goodwill is classified as a/an
net profit
if the total of the operating expenses section of the income statement is smaller than the total of the income section, the difference is
accrued income
income earned but not received is called
deferred income
income received but not yet earned is
income
increases in the owner's equity resulting from business operation is known as
owes
liabilities are all things a funeral director
interest
money paid for the use of money is called
vendor
one who has made a sale is called a/an
asset
property (real or personal) of monetary value owned by a business
fixed asset
property of a relatively permanent nature used in the operation of a business and not intended for resale is called
scrap or salvage value
that portion of a plant assets original cost that cannot be depreciated is called
cr
the abbreviation for "credit" is
dr
the abbreviation for "debit" is
balance sheet
the accounts payable account would be shown on the
assets and expenses
the accounts which when debited are increased
closing temporary accounts
the acronym REID (revenue, expense, income, drawing) is used when
mark-up
the amount added to the cost of an article to determine the selling price of that article is the
profit and loss statement
the amount of income from the sale of funeral services would be shown on which formal financial statement
profit and loss statement
the amount of revenue from the sale of funeral services would be shown on the
double entry
the basic accounting theory is based on
$1100
the beginning balance in the supplies account is $600. during the month an additional $800 worth of supplies were purchased. at the end of the month, an inventory of supplies found that only $300 remained on hand. what would be the amount of the adjusting entry for the supplies account
chronological order
the book of original entry is in
overhead
the cost of operating a business is called
right side
the credit side of a t account is the
left side
the debit side of a t account is the
depreciation
the decrease in the value of a fixed asset is called
gross margin
the difference between net sales and cost of goods sold
gross profit
the difference between the cost of goods sold and their selling price is called
account balance
the difference between the two sides of an account is called the
net sales
the difference between total sales and sales returns and allowances is
stockholder
the holder or person owning stock in a corporation is the
profit
the increase in net worth due to the excess of income over costs and expenses is called
closing entries
the only time the debit side of the revenue account is used is when you make
A. (Debit rent expense and credit cash)
the payment of rent by cash is recorded by which of the following? A. Debit rent expense and credit cash B. Debit cash and credit capital C. Debit accounts payable and credit cash D. Debit cash and credit rent expense
the normal operating cycle
the period of time required to purchase goods and services and turn them back into cash is called
consignee
the person or business concern to whom a shipment is made is a
profit
the primary purpose of a business is
posting
the process of recording information in a ledger is called
expenses and withdrawals of assets from the business by the owner
the proprietorship of a business may be decreased by
net income and investment of assets in the business by the owner
the proprietorship of a business may be increased by
credit side
the right side of a standard account is called the
sole proprietor
the sole owner of a business is a
accounts payable
the title of an account which would normally have a credit balance is
footing
the totaling of a column in a journal or ledger account is called
debit petty cash and credit cash
to establish a petty cash fund, one would
debit revenue and credit expense and revenue summary
what would be the closing entry to close the revenue account
debit casket coach and credit accounts payable
when a funeral director buys a casket coach on credit she would
the asset cash is credited
when cash is spent in the acquisition of an asset the impact on the accounting equation is
not affected
when cash is spent in the acquisition of an asset the net worth of a business is
expenses
which on of these does not appear on the balance sheet: expenses, assets, liabilities, proprietorship
liquidity
working capital is a measure of
