Accounting Fundamentals

What is an example of an asset account? A. Office equipment. B. Midtown Bank and Savings. C. Gail Greene, Capital. D..Utilities Expense.

Office equipment. Office equipment is an example of an asset account because it is something owned by the business that has value to it.

What is an outstanding check? A. A check that cannot be cashed for 10 days. B..A. check that you have not deposited yet. C..A check that you have voided. D.A check you have written but has not been presented for payment at the bank.

A check you have written but has not been presented for payment at the bank. An outstanding check is a check that you have written and taken off your checkbook balance but has not yet been presented at the bank for payment.

What is the function of the 'Purchases' account? A. To keep track of the amount of money spent for advertising. B..To keep track of purchases of merchandise made for resale. C..To keep track of supplies purchased. D..To show the owner his net worth in the business.

To keep track of purchases of merchandise made for resale. Purchases shows the total amount of money spent (wholesale amount) on merchandise for resale to consumers.

Why is it important to check your debit totals and your credit totals in the Journal at regular intervals in the month? A..To prove the equality of the debit and credit totals. B..To be able to make up a sales report. C..To close out an Accounts Receivable account. D..To send bills out.

To prove the equality of the debit and credit totals. The debit and credit totals in the Journal must agree after any given transaction. If they do not agree, the error must be found before continuing.

A worksheet is a financial report that shows A if the business has a net income or net loss for the period. B how much the owner's capital has increased. C What the asset accounts have for balances. D How much money the owner has withdrawn for personal use.

if the business has a net income or net loss for the period. a worksheet's main function is to show whether or not a business has a net income or a net loss for the period.

Adjusting entries are necessary to A. to show which accounts in the general ledger have balances. B..to show the net income for the year. C..to update certain accounts for the new fiscal period. D.zero out all the balances in the general ledger.

o update certain accounts for the new fiscal period. Adjusting entries are necessary to update certain account balances for the beginning of the new fiscal period.

An Income Statement's primary purpose is to show A. How much each partner took out of the business for personal use during the year. B.how many partners the business has. C.How the partners divide the net income. D.How the net income for the year was determined.

How the net income for the year was determined. The main purpose of an Income Statement is to show how the net income or net loss of a business for the year was determined.

What does a Post-Closing Trial Balance prove? A. That the business had a net income for the fiscal period. B.That the books have been audited for the year. C..That the debits and credits in the General Ledger are equal for the accounts that have balances remaining. D..That all the accounts have been closed out.

That the debits and credits in the General Ledger are equal for the accounts that have balances remaining. The Post-Closing Trial Balance proves that the accounts that have balances remaining in the General Ledger are equal.

The name of a book of vendors is A. The Accounts Payable Ledger. B. The Accounts Receivable Ledger. C..The Balance Sheet. D..The Journal.

The Accounts Payable Ledger. A book of vendors is called an Accounts Payable Ledger.

After all the posting from the journal is complete, what must be true about the General Ledger? A. The accounts should be full. B.There must be the same number of asset accounts as there are expense accounts. C..The owner must put more money into the business. D..The debit balances must equal the credit balances.

The debit balances must equal the credit balances. The debit balances in the General Ledger must equal the credit balances in the General Ledger after all journal entries have been posted.

What does a Balance Sheet prove? A. A new year is beginning. B. The equality of debits and credits in the General Ledger. C..The month's transactions have all been entered in the General Ledger. D..It is the end of the month.

The equality of debits and credits in the General Ledger. A Balance Sheet does indeed prove that the debits and credits are equal in the General Ledger.

One of the factors that determine how much income tax is withheld from an employee is A. how much money his wife makes. B.how long he has been at this same job. C.his age. D..whether he is married or single.

whether he is married or single. An employee's marital status does indeed affect how much income tax will be withheld from his pay.