accounting comp
Invoice
a paper showing quantity, description, prices of items, total amount of purchase, and terms of payment is a/an
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
Drawer
a person who signs a check or draft ordering payment to be made is called the
Creditor
a person who whom a debt is owed is called a
At any time
a profit and loss statement can be prepared
Depreciation
a synonym for fair wear and tear of a durable asset is
Footing
a total, written in small pencil figures, under the last entry in a column is the
Note receivable
a written promise of a customer to pay the business a sum of money at a future date is called a/an
Liability account
accounts payable is a/an
Asset account
accounts receivable is a/an
Income statement
advertising expense wold be reflected on the
Merchandise
goods purchased for resale at a profit
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
Deferred income
income received but not yet earned is
Income
increases in the owner's equity resulting from business operations is known as
Owes
liabilities are all things a funeral director
Interest
money paid for the use of money is called
Scrap 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
Closing temporary accounts
the acronym REID is used when
Mark-up
the amount added to the cost of an article to determine the selling price of that article is the
Depreciation expense
the amount of depreciation taken during the current fiscal year is properly termed
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
$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 straightline method of depreciation, what would be the yearly amount of depreciation?
Social security
F.I.C.A refers to
Accounts payable
The title of an account which would normally have a credit balance is
Loss
a decrease in net worth due to excess of costs and expenses over income is
Payment
a disbursement is a
Dividend
a distribution of profits of a corporation to its stockholders as declared by the board of directors is
The entry is complete
a double line under the last entry on a T-account means
Petty cash
a fund of currency and coin established for the payment of small amounts of money is
Ledger
a group of accounts constitutes a/an
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
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 account indicates that the account has been
Increased
an entry on the credit side of a liability account indicates that 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 owners equity indicates that the account has been
Budget
an estimate of revenue and probably expense for a given period of time is a
Income
an increase in proprietorship as the result of a business transaction is a/an
Income statement
another term for profit and loss statement is
assets, liabilities, proprietorship
appears on the balance sheet
Accounting equation
assets = liabilities + owner's equity is the
Owner's equity = $30,000, 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.
Double entry
basic accounting theory is based on
cash, accounts receivable, office supplies
current assets
Fixed liabilities
debts that are not due and payable within a year are called
debit and credit
double entry bookkeeping means an entry is made as a/an
Decrease in owner's equity
expense means a/an
Vendor
one who has made a sale is called a/an
Fixed asset
property of a relatively permanent nature used in the operation of a business and not intended for resale is called
debit office supplies and credit accounts payable
purchase of office supplies on credit is recorded by
Gross profit
sales minus cost of goods sold equals
$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 the 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
Liabilities
the debts one owes are
Depreciation
the decrease in the value of a fixed asset is called
Gross profit
the difference between cost of goods sold and their selling price is called
Gross margin
the difference between net sales and cost of goods sold
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
Working capital
the excess of current assets over current liabilities is called
Liabilities and capital
the group of accounts which you credit when increased are
Assets and expenses
the group of accounts which you debit when increased are
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
Inventory
the merchandise that a business keeps on hand for sale is the
Closing entries
the only time the debit side of the revenue account is used is when you make
Debit rent expense and credit cash
the payment of rent by cash is recorded
The normal operating cycle
the period of time required to purchse 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
Endorser
the person who orders the bank to make payment of a financial instrument is properly termed a/an
Profit
the primary purpose of a business is
Posting
the process of recording information in the 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
Proprietor
the sole owner of a business is a
Assets
the things of value owned by a business are
Assets
the things one owns are
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, 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, he 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
Accumulated depreciation
which of the following accounts would be used to assist the accountant in an an adjusting entry involving depreciation
Owner's equity, net worth, capital
which of the following represents the difference between the total assets and the total liabilities