Intro to Accounting Final T
Accounts in which the balances are carried over from one accounting period to the next are called:
Real accounts
The statement of owners equity shows assets, withdrawals, and liabilities
False
Dennis, owner of Dennis Golf center, withdrew $900 in cash from the business. Record the transaction by:
debiting Dennis, Withdrawals $900, crediting cash, $900
The twelve-month period a business chooses for its accounting period is a(n)
fiscal year
A chart of accounts
is a listing of all the accounts used by a company
A restrictive endorsement on a check
is the safest endorsement for businesses
Business transactions are first recorded in the
journal
The employee earnings record
keeps track of an individual employee payroll history for a calendar year
Posting is performed by transferring information from the journal to the
ledger
The claims of creditors against the assets are
owners equity
Which form contains information about gross earnings and is given to the employee by January 31
Form W-2
Net pay equals
Gross pay less all deductions
A credit may signify a(n)
increase in capital
Assets are equal to
liabilities+owners equity
Wages exspense
owners equity
Workers compensation insurance is
paid by the employer to protect the employee against job-related injury or death
The person or company to whom a check is payable is called the
payee
To examine in detail the weekly payroll of all employees one would look at the
payroll register
The correct order for closing accounts is
revenue, expenses, income summary, withdrawals
A form used to organize and check data before preparing financial reports is known as a(n)
worksheet
A petty cash fund is set up
to pay for small expenses
Supplies
Asset
Items owned by the business such as land, supplies and Equipment are:
Assets
How does the purchase of office equipment on account affect the accounting equation
Assets increase, liabilities increase
Closing entries are prepared
At the end of the accounting period To clear all temporary accounts to zero To update the Capital balance
To close the Fees earned account
Debit Fees earned Credit income summary
Sally's Spices accrued and unpaid wages are $2,000. Which of the following is the required adjusting entry?
Debit Salaries Expense, $2,000 Credit Salaries Payable, $2,000
To close the Withdrawals account
Debit capital Credit withdrawls
How do you close the expense accounts?
Debit income summary Credit the expense accounts
The adjustment to record supplies used during the period would be:
Debit supplies Expense Credit Supplies
Which tax does NOT have a wage base limit?
FICA-Medicare
The payroll taxes the employer is responsible for are
FICA-Medicare FICA- OASDI
Employers pay the following payroll taxes
FICA-OSADI and State unemployment tax
A fiscal year is always January 1 through December 31
False
All states charge a state income tax
False
On the worksheet, the difference between the debits and credits in the income statement columns would be the ending owners equity balances
False
Only one account is affected in every transaction
False
The four parts of owners equity include capital, liabilities, revenue, and exspense
False
The worksheet is the first financial statement prepared
False
If total liabilities are $18,000 and owners equity is $21,000 the total assets must be
$39,000
Vance Johnson works 44 hours as a coffee barista and earns $17 per hour. Compute her weekly pay assuming an overtime rate of 1.5
$782
Jim Stein's hourly wage is $40 and he worked 42 hours during the week. Assuming an overtime rate of a time and a half Jims gross pay would be
$1,720
Which of the following increases owners equity
An investment by the owner
When recording a transaction in a journal, the account listed first is always the
Debit
Accounts Payable
Liability
The ending figure for capital, used on the balance sheet, will be obtained from:
The statement of owners equity
Which of the following is not a financial statement
Trial balance
Which of the following accounts should NOT be closed to Income Summary at the end of the fiscal year?
Withdrawls
Simpson Golf Academy estimated depreciation on its building at $1,300. The adjusting entry for depreciation of the building would include:
a debit to depreciation expense for $1,300
The accounts payable account is
a liability, and it has a normal credit balance
The balance sheet contains
assets, liabilities, and owners equity
Accounts Receivable
Asset
The bank statement included bank charges. On the bank reconciliation, this item
A deduction from the balance per company books
Which of the following is not an asset
Accounts payable
Journal entries that are needed in order to update account balances for internal business transactions (such as supplies and prepaid rent) at the end of the period are
Adjusting entries
Cash
Asset
Equipment
Asset
The net income or net loss is calculated on the
Income Statement
What type of an account is Wages and Salaries Payable
Liability
These are two parts to FICA
OASDI and Medicare
Closing entries will affect
Owners capital
Advertising Expense
Owners equity
P.Coyote, Drawing
Owners equity
Repair Fees
Owners equity
Gross Earnings are the same as
Regular earnings + overtime earnings
Which of the following accounts would NOT appear on the balance sheet?
Rent Expense
Which of the following items is increased with a credit?
Revenues
Under the Fair Labor Standards Act, for any hours that an employee works over 40 during a work week
The employee is paid time and a half
How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?
They would be subtracted from the balance of the bank statement
A company could review the ledger if an account balance was needed
True
Accounts Receivable increases on the debit side of the account
True
Adjusting entries must be journalized and posted
True
FICA- Medicare provides for medical benefits after age 65
True
The left side of the accounting equation must always equal the right side of the equation
True
Transactions are listed in chronological (date) order in the journal
True
When an asset expires or is used up, it becomes an expense
True
When an employee's earnings are greater than FICA base limit during the calendar year, no more FICA-OASDI tax is deducted from earings
True