accounting coach

The minimum number of accounts affected by every transaction is __________.

2

If an amount is recorded with two of its digits transposed, the amount of the difference is evenly divisible by the digit __________.

9

"Book of original entry" describes

a journal

Each revenue and expense account will begin the accounting year with __________ balance.

a zero

Purchasing supplies on credit will be recorded with a credit to the account __________ __________.

accounts payable

A company providing services on credit will debit the account __________ _________

accounts recieveable

Bad Debts Expense is an income statement account used to report the losses associated with the asset account __________ __________.

accounts recieveable

Sales and services that are provided on credit will cause an increase in the asset account __________ __________.

accounts recieveable

5. __________ Depreciation is a contra-asset account.

accumulated

Recording revenues when they are earned rather than when the money is received is part of which basis or method of accounting?

accural

Entries to bring the accounts up to the accrual basis of accounting prior to issuing the financial statements are known as __________ entries.

adjusting

Prepaid Insurance and Supplies on Hand are examples of __________ accounts.

asset

The Allowance for Doubtful Accounts is one of the accounts under the __________ section of the chart of accounts.

asset

The__________ accounts are usually listed first in the general ledger and in the chart of accounts.

asset

Accumulated Depreciation will be listed on which financial statement?

balance sheet

The financial statement that has the form of the accounting equation is the __________ __________.

balance sheet

The end-of-year balances in the asset accounts will become the following year's __________ balances. View

begging or starting

A listing of the account numbers and titles but without account balances is the __________ of accounts.

chart

A listing of the names and numbers of the accounts that are available for recording transactions is the __________ of accounts.

chart

Entries made at the end of the accounting year to the income statement accounts after the financial statements have been prepared are __________ entries.

closing

A check written by a company is recorded as a __________ to the general ledger account Cash.

credit

A profitable corporation's balance in Retained Earnings.

credit

A revenue account's normal balance.

credit

An entry on the right side of a T-account.

credit

Rent Expense, Wages Expense, and Advertising Expense are expected to have __________ balances.

credit

The Cash account will have a __________ balance if the amount of cash is negative.

credit

The balance you would expect in Accumulated Depreciation.

credit

The entry to Accounts Payable for a purchase on credit.

credit

The entry to Accounts Receivable when a customer's account is collected.

credit

The entry to increase J. Smith, Capital.

credit

The entry to increase Sales Taxes Payable.

credit

The entry to reduce the balance in Supplies on Hand.

credit

The entry to the Equipment account when equipment is scrapped.

credit

The usual entry to Sales or to Service Revenues.

credit

This will increase the balance in a liability account.

credit

Usually the Allowance for Doubtful Accounts will have this type of balance.

credit

revenue accounts

credit

In a general journal entry, the account that is to be __________ will be indented.

credited

When a company pays a bill by writing a check, the account Cash is

credited

Entries in the general journal appear in order by __________.

date

A sole proprietor's Drawing Account will likely have a __________ balance.

debit

An entry on the left side of a T-account.

debit

Sales Discounts will likely have a __________ balance.

debit

The entry to Accumulated Depreciation to remove the depreciation associated with a machine that was scrapped

debit

The entry to Payroll Withholdings Payable when remitting payroll taxes.

debit

The entry to increase the balance in Prepaid Insurance

debit

The expected balance for Customer Deposits.

debit

The expected balance in Purchase Discounts.

debit

This will decrease the balance in Accounts Payable.

debit

This will increase the balance in an asset account.

debit

To charge an account means to __________ an account

debit

he entry to J. Smith, Drawing when a withdrawal occurs.

debit

The account to be __________ will be listed first in a general journal entry.

debited

Recording each transaction with a minimum of one debit and one credit is known as __________ -entry bookkeeping.

double

__________-entry accounting refers to two or more amounts recorded for every business transaction.

double

The accounting equation for a corporation is assets = liabilities + stockholders' __________.

equity

The word for a cost that has expired or has been matched with revenues is __________.

expense

A lawsuit has been filed against a company. Even if the company's attorney believes that it is remote that the company will lose, the amount should be recorded in a liability account.

false

A sole proprietor's withdrawal of cash for personal use is recorded in the account Salaries Expense.

false

Recording an entry in the general journal is referred to as posting.

false

Sales commission expense is part of the cost of goods sold.

false

The purchase of supplies should be recorded in the company's Purchases account.

false

The sale of a company's old delivery truck would be recorded in a sales journal and in the account Sales.

false

The term __________ means to sum or to add up.

foot

Depreciation is likely to be first recorded in the__________ journal.

general

Posted transactions are stored in accounts contained in the __________ ledger.

general

The journal entry to record depreciation is recorded in the __________ journal.

general

the entries recorded in the general journal are also posted to accounts in the __________ __________.

general ledger

Generally, which accounts are closed at the end of the accounting year?

income statement accounts

At the end of the accounting year Depreciation Expense is closed to

income summary

Revenues have the effect of causing owner's or stockholders' equity to

increase

Under the accrual basis of accounting, a payment in late 2018 for the 2019 insurance expense will decrease the asset Cash and will

increase another asset

A __________ is known as the book of original entry.

journal

A customer's check dated June 27 was received by XYZ Corp. on June 30 and was deposited on July 2. The amount of the check should be reported as part of XYZ's cash as of the following date: __________.

june 30

The amounts reported on a trial balance are the balances of the accounts contained in the general __________.

ledger

Customer Deposits and Unearned Fees are examples of accounts under the balance sheet classification of __________.

liabilities

Accounts Payable, Wages Payable, and Notes Payable are examples of __________ accounts.

liability

he sole proprietor's drawing account is closed to the

owners capital account

Which is not an expense on the income statement of a sole proprietorship?

owners draw

The account that is debited when a sole proprietor withdraws some of the business's cash for personal use is

owners drawing

The process of recording amounts from a journal into the general ledger is called __________

posting

Under the accrual basis of accounting, owner's equity is increased by

providing a service

Under the accrual basis of accounting, which of the following will not cause a change in owner's equity?

purchase of land

Sales of merchandise and fees earned from providing services are examples of the income statement element __________.

revenues

Freight-out is part of a company's __________.

selling expenses

The sales journal, cash disbursement journal, and cash receipts journal are examples of __________ journals.

special

A control account in the general ledger is supported by the details in a __________ ledger.

subsidairy

The income statement accounts are referred to as

temporary

Recording $945 as $954 is known as a __________ error.

transposition

The internal report that presents the balances in the accounts in either a debit or credit column in order to prove that the total of the debit balances is equal to the total of the credit balances is known as the __________ balance.

trial

A listing of all of the account balances in order to prove that the total of the debit balances is equal to the total of the credit balances is a __________ __________.

trial balance

A separate account for meals expense is helpful since business meals are expensed in full on the financial statements but may be only 50% deductible on the income tax return.

true

Both assets and expenses will normally have debit balances.

true

Both liabilities and revenues will normally have credit balances.

true

If equipment used in the business is sold for cash and the amount is more than its book value, a gain is recorded.

true

The interest due on a long-term loan is usually recorded in an account which is separate from the account containing the principal amount.

true

Recording $1,000 in the account Property Tax Expense instead of Rent Expense __________ cause the trial balance to be out of balance.

will not

The trial balance __________ be out of balance if an entire journal entry is recorded twice

will not