Accounting Semester 1: Exam
Capital
Account used to close net income at the end of a fiscal period
Purchases
Account used to record buying or merchandise
Miscellaneous Expense
Account used to record expenses that do not fit into any other account
Accounts Receivable
Account used to record money that is due TO you
Advertising Expense
Account used to record purchase of commercial or a billboard to promote
Sales
Account used to record revenue of a business
Sales Tax Payable
Account used to record the tax paid by the customers for goods purchased
Which of the following accounts is NOT an asset? (Accounts Payable, Accounts Receivable, Prepaid Insurance)
Accounts Payable
Which of the following accounts is a liability account? (Wages Expenses, Supplies, Accounts Payable)
Accounts Payable
Which of the following accounts is an asset account? (Accounts Receivable, Sales, J. Smith/Capital)
Accounts Receivable
Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as ___
Assets
The financial statement that reports the assets, liabilities, and stockholder's (owner's) equity at a specific date is the ___
Balance Sheet
Which financial statement does NOT cover a period of time? (Balance Sheet, Income Sheet)
Balance Sheet
Which account is NOT closed at the end of the accounting year? (Drawing, Cash, Sales)
Cash
Which of the following is a permanent account? (Cash, Sales, Wages Expense)
Cash
The listing of all of the accounts available for use in a company's accounting system is known as the ___ __ ___
Chart of Accounts
+ Capital Stock
Credit
+ Empl Inc Tax Payable
Credit
+ Mary Smith, Capital
Credit
+ Notes Payable
Credit
+ Purchase Discount
Credit
+ Sales Tax Payable
Credit
+ Service Revenue
Credit
A ___ entry is entered on the right side of the account
Credit
A typical entry in the account Sales will be a ___
Credit
What will usually cause the liability account Accounts Payable to increase?
Credit
Which term is associated with "right-side"?
Credit
When a check is written, the company's Cash account should be ___
Credited
When a company pays a bill, the account Cash will be ___
Creditied
Entries to revenues accounts such as Service Revenues are usually ___
Credits
Items recorded in the general journal are in order by ___ (Account Number, Date, Type of Transaction)
Date
+ Accounts Receivable
Debit
+ Cash
Debit
+ Mary Smith, Drawing
Debit
+ Petty Cash
Debit
+ Prepaid Insurance
Debit
+ Sales Returns & Allowances
Debit
+ Supplies
Debit
+ Supplies Expense
Debit
A ___ entry is entered on the left side of the account
Debit
A typical entry in the account Wages Expense will be a ___
Debit
What will usually cause an asset account to increase?
Debit
Which term is associated with "left-side"?
Debit
When cash is received, the company's Cash account should be ___
Debited
Entries to expenses such as Rent Expense are usually ___
Debits
When cash is received, the account Cash will be ___
Debitted
Which amount should be added to the balance per bank in a bank reconciliation? (Bank Service Charge, Deposits in Transit, Outstanding Checks)
Deposits in Transit
Which one of the following payroll taxes is withheld from an employee's pay but is not matched by the employer? (Federal Income Tax, Medicare Tax, Social Security Tax)
Federal Income Tax
Which one of the following is not withheld from an employee's wages or salary? (Federal Income Tax, Federal Unemployment Tax, FICA Tax)
Federal Unemployment Tax
A company's ___ ledger contains all of the accounts such as Rent, Expense, Supplies, and Interest Payable
General
The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the ___
Income Statement
A debit will cause the balance in a liability account to ___
Increase
Which of the following accounts is a temporary account? (Prepaid Insurance, Interest Expense, J. Smith/Capital)
Interest Expense
Which of the following accounts is a balance sheet account? (Interest Receivable, Sales, Interest Expense)
Interest Receivable
Which one of the following taxes applies to every dollar of every employee's wages or salary? (Federal Unemployment Tax, Medicare Tax, Social Security Tax)
Medicare Tax
Which account is closed at the end of the accounting year? (Petty Cash, Miscellaneous Expense, Prepaid Insurance)
Miscellaneous Expense
Revenues minus expenses equals ____
Net Income
Which amount should be deducted from the balance per bank when preparing a bank reconciliation? (Bank Service Charge, Deposits in Transit, Outstanding Checks)
Outstanding Checks
Assets minus liabilities equals ___ ___
Owner's Equity
The basic accounting equation is Assets = Liabilities + ___ ___
Owner's Equity
Liabilities often have the word ___ in their account title
Payable
Accounting entries involve a minimum of how many accounts?
Two
