Acct A110 Ch 1 & 2
Which of the following is not an account in the General ledger? A. assets, B. equipment, C. Accounts payable, D. Drawing, E. Cash
A. Assets
Indicate (+) and (-) Assets, Liabilities, Capital (equity), revenue (fees/sales), expenses, accum. depr., dividends, drawing, accounts receivable, accts. payable, sales returns, supplies, supply expense, prepaid insurance
Assets (+/-) Liabilities (-/+) Capital (equity) (-/+) revenue (fees/sales) (-/+) expenses (+/-) accum. depr. (-/+) dividends (+/-) drawing (+/-) accounts receivable (+/-) accts. payable (-/+) sales returns (+/-) supplies (+/-) supply expense (+/-) prepaid insurance (+/-)
"Paid the rent for the month: $2000." the account debited should be
B. Rent Expense
Which of the following is not an asset account? A. office equipment, B. Prepaid insurance, C. sales, D. inventory, E. cash
C. Sales
A box located to the left of each of several choices that contains either a blank or a check mark and permits the user to select or deselect the choices
Check boxes
Control (+) C Control (+) N Control (+) P Control (+) S Control (+) V Control (+) X Control (+) F
Copy New Print Save Paste Cut Find
The abbreviation for Debit is ___, Credit is ____
Dr, Cr
A "contra capital" account
Drawing account
A list of items that appears immediately below the selected menu
Drop-down menu
A business received a $600 check from one of its account receivable customers as a payment on their account. the resulting journal transaction is:
E. increase an asset, decrease an asset
A compound entry is a journal transaction that has two entries - one debit and one credit
False
Accounts in the general ledger are arranged in alphabetical order
False
If the Supplies asset account had a beginning of the month balance of $9,000 and an end of the month balance of $6,000 then the adjusting entry would be: DEBIT Supply Expense $6,000 and Credit Supplies $6000
False
A Balance sheet proves that Debits = Credits
False, Assets = Liabilities plus Owner's Equity
An increase in an expense account is recorded as a credit
False, Debit
A Trial Balance proves that "Assets = Liabilities + Owner's Equity"
False, Debits = Credits
A Trial Balance proves that "Assets = Liabilities plus Owner's Equity"
False, Dr = Cr
The Depreciation (cost recovery) adjusting entry is DEBIT: Accum. Depr., CREDIT Dep. Exp.
False, Opposite
Total assets is the owner's net investment, or equity in a business
False, Total assets minus liabilities
The adjusting entry recorded in the general journal for Supplies is the balance of Supplies-on-hand at the end of the accounting period
False, amount not used
When the owner of a business withdraws money for personal use, the transaction is recorded as a credit to cash and a debit to accounts receivable
False, debit to drawing account
The amount for Supplies that should appear in the Balance Sheet represents the value of supplies "used up" for the accounting period
False, ending balance
In accounting, Debit means increase
False, means left
When total expenses are greater than total revenues, the company has overdrawn its cash account.
False, net loss
Cash is listed in the Income Statement as well as the balance sheet
False, never in the income statement
Outstanding checks are added to the bank balance when completing a bank reconciliation
False, subtracted
buttons representing options, where the selected option contains a filled circle icon and only one option may be selected
Option buttons
A financial statement that shows the change in net worth of a business
Owner's Equity statement
A Balance sheet reports account ending balances on a specific day (e.g. June 30, 2012)
True
Both Drawing and Accumulated Depreciation are examples of contra accounts
True
Income Statements report for a time period (ex. month, quarter, year or year-to date)
True
The "double entry" bookkeeping system means that every transaction recorded in a journal must have at least one debit and one credit, and total debits must equal total credits
True
The adjusting entry recorded in the General Journal for Prepaid Insurance is the amount insurance expired during the accounting period
True
The difference between a trial balance and post-closing trial balance is that the post-closing trial balance doesn't contain any revenue, expense or drawing accounts
True
The fundamental accounting equation is Assets = Liabilities + Equity
True
The left side of any account, event a contra account, is always the debit side
True
The normal balance for both accounts payable and fees revenue is credit
True
The objective of Closing Entries is to transfer the balances from the Revenue, Expense and Drawing Accounts to the Capital (Equity) Account
True
The term "Normal Balance" means the (+) or increase side of an account
True
a new general ledger account can be added (or changed) while entering a journal entry
True
general ledger accounts cannot be deleted unless the account balance is zero
True
instead of entering an account number in the general journal, you may select the account from a chart of accounts selection list window
True
changes entered in the computer to update general ledger accounts at the end of a fiscal period
adjusting entries
A financial statement that proves assets = liabilities + equity
balance sheet
a financial statement that provides information on the overall financial strength of a business
balance sheet
a report that gets the check book (G/L cash account) balance to equal the bank statement balance
bank reconciliation
a report that reconciles the bank statement balance with the checkbook balance
bank reconciliation
income summary is closed to this account
capital (equity) account
A list of all accounts and account numbers used by a business is referred to as their ____ of _____
chart of accounts
journal entries automatically generated by the computer that close all temporary income statement accounts to the income summary account, close the income summary account to the capital account, and close the drawing account to the capital account
closing entries
a regular interval of time for which a business analyzes its financial information
fiscal period
All accounts and account balances for a business can be found in their ____ ____
general journal
a financial statement that contains revenue and expenses
income statement
a financial statement that provides information on the net income or net loss of a business over a period of time
income statement
A financial statement whose date format is for a period of time (ex. month, quarter, year)
income statement, owner's equity statement
income statement accounts (ex. revenue and expenses) are closed to this account
income summary account
Debit means ___, credit means ____
left, right
a bar displayed continuously on the top line of the screen, showing the menus available
menu bar
buttons arranged in a vertical column along the left side of the display screen that facilitate fast, efficient, and intuitive movement throughout the accounting application
navigation buttons
a report produced after the period-end closing procedure that is completed to verify that debits equal credits in the general ledger accounts
post-closing trial balance
a report that is prepared after completing the adjusting entries, closing entries and financial statements, and proves DR=CR
post-closing trial balance
the process of updating the ledger account balances with all debits and credits from the journal entries
posting
a financial statement used to show the changes that have occurred to the owner's equity during the fiscal period
statement of owner's equity
a bar displayed on the top of the application window that contains icons representing common processing tasks that a user is most likely to perform
tool bar
a brief informational message that automatically appears when the pointer is positioned on a toolbar button
tool tips
a report that lists all the accounts in the general ledger and proves that DR=CR
trial balance