Accounting Flashcards by Joshua Margolis

An entry mode on the debit side of an expense account indicates that the account has been:

balanced
decresed
footed
increased

increased

How well did you know this?

Not at all

Perfectly

A ledger is a book of what?

accounting statements
accounts
original entry
trial balances

accounts

How well did you know this?

Not at all

Perfectly

Basic accounting theory is based upon:

a double book
double entry
single entry
triple entry

double entry

How well did you know this?

Not at all

Perfectly

An entry on the debit side of a liability account indicates the account has been:

balanced
decreased
footed
increaesd

debit office supplies and credit accounts payable

How well did you know this?

Not at all

Perfectly

Purchase of office supplies on credit is recorded by:

credit office supplies and debit accounts payable
debit office supplies and credit accounts payable
debit office supplies and credit purchases
debit purchases and credit accounts payable

debit office supplies and credit accounts payable

How well did you know this?

Not at all

Perfectly

An accounting year ending on some date other than December 31st is called:

calendar year
current year
fiscal year
physical year

fiscal year

How well did you know this?

Not at all

Perfectly

The things owned by a business are called:

assets
capital
liabilities
revenue

assets

How well did you know this?

Not at all

Perfectly

An entry made on the debit side of an asset account indicates that the account has been:

balanced
decreased
increased
footed

increased

How well did you know this?

Not at all

Perfectly

How is the payment of rent by cash recorded?

debit accounts payable and credit cash
debit cash and credit capital
debit cash and credit rent expense
debit rent expense and credit cash

debit rent expense and credit cash

How well did you know this?

Not at all

Perfectly

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 only $300 remained on hand. What would be the amount of the adjusting entry for the supplies account?

$300
$1100
$1400
$1700

$1100

How well did you know this?

Not at all

Perfectly

When a funeral director buys a funeral coach on credit, he/she would:

credit casket coach and debit accounts payable
debit cash and credit casket coach
debit casket coach and credit accounts accounts payable
debit casket coach and credit cash

debit casket coach and credit accounts accounts payable

How well did you know this?

Not at all

Perfectly

The group of accounts which you credit to increase are:

assets and expenses
liabilties and assets
liabilities and capital
liabilities and expenses

liabilities and capital

How well did you know this?

Not at all

Perfectly

An entry made on the debit side of the proprietorship account indicates that the account has been:

balanced
decreased
footed
increased

decreased

How well did you know this?

Not at all

Perfectly

The group of accounts which you debit when increased are:

assets and capital
assets and expenses
assets and income
assets and liabilities

assets and expenses

How well did you know this?

Not at all

Perfectly

A group of accounts constitues a/an:

journal
ledger
posting
special journal

ledger

How well did you know this?

Not at all

Perfectly

The accounts payable account would be shown on the :

Accounts Receivable Ledger
Balance Sheet
Income Statement
Profit and Loss Statement

Balance Sheet

How well did you know this?

Not at all

Perfectly

Advertising expense would be reflected on the:

Balance Sheet
Income Statement
Statement of Financial Condition
Statement of Owner’s Equity

Income Statement

How well did you know this?

Not at all

Perfectly

The totaling of a column in a journal or ledger account is called:

closing
footing
journalizing
posting

footing

How well did you know this?

Not at all

Perfectly

The right side of a standard account is called the:

credit side
debit side
loss side
profit side

credit side

How well did you know this?

Not at all

Perfectly

The amount of revenue from the sale of funeral services would be shown on the:

Balance Sheet
Profit and Loss Statement
Statement of Assets and Liabilities
Statement of Financial Condition

Profit and Loss Statement

How well did you know this?

Not at all

Perfectly

Another term for Profit and Loss Statement is:

Balance Sheet
Income Statement
Statement of Financial Condition
Trial Balance

Income Statement

How well did you know this?

Not at all

Perfectly

Accounts receivable is a/an:

Asset account
Capital account
Liability account
Revenue account

Asset account

How well did you know this?

Not at all

Perfectly

A person to whom a debt is owed is called a:

credit
creditor
debt
debtor

creditor

How well did you know this?

Not at all

Perfectly

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 straight-line method of depreciation, what would be the yearly amount of depreciation?

$166.67
$1,000
$2,000
$2,667

$2,000

How well did you know this?

Not at all

Perfectly

Which of the following does not appear on the balance sheet? Assets Expenses Liabilties Proprietorship

Expenses

Liabilties are all things a funeral home business: owes owns sells spends

owes

A Profit and Loss Statement can be prepared: at any time only once a month only every three months only every six months

at any time

An entry on the credit side of a revenue account indicates the account has been: balanced decreased footed increased

increased

When cash is spent in the acquisition of an asset the net worth of a business is: decreased footed increased not affected

not affected

The process of recording information in the ledger is called: balancing footing journalizing posting

posting

If the total of the operating expense section of the income statement is smaller than the total of the income section, the difference is called: gross profit net loss net profit net worth

net profit

Double entry bookkeeping means an entry is made: as a debit and credit as an asset and a liability in a double book in a journal and ledger

as a debit and credit

The proprietorship of a business may be increased by: borrowing from banks and purchase of assets on credit collection of accounts receivable and borrowing from banks net income and borrowing from banks net income and investment of assets in the business by the owner

net income and investment of assets in the business by the owner

Expense means a/an decrease in owners equity increase in an asset increase in owners equity increase in sales

decrease in owners equity

Which of the following accounts would be used to assist the accountant in an adjusting entry involving depreciation? Accumulated depreciation Allowance for doubtful accounts Automobile Automobile expense

Accumulated depreciation

The proprietorship of a business may be decreased by collection of accounts receivable and borrowing from banks expenses and withdrawals of assets from the business by the owner net income and borrowing from banks net income and investment of assets in the business by the owner

expenses and withdrawals of assets from the business by the owner

The difference between the two sides of an account is called the account balance account number account schedule net profit

account balance

To establish a petty cash fund, one would debit accounts payable and credit cash debit cash and credit petty cash debit cash and credit accounts payable debit petty cash and credit cash

debit petty cash and credit cash

The title of an account which would normally have a credit balance is accounts payable accounts receivable advertising expense cash

accounts payable

The abbreviation for "debit" is Db. Dbt. Dr. Dt.

Dr.

An increase in proprietorship as the result of a business transaction is a/an asset income liability net worth

income

The abbreviation for "credit" is Cd. Cr. Cred. Ct.

Cr.

A list of accounts that shows the arrangement of the accounts in the ledger is called Accounts Receivable Ledger Balance Sheet Chart of Accounts Trial Balance

Chart of Accounts

A person who signs a check or draft ordering payment to be made is called the drawee drawer maker payee

drawer

Which of the following does not qualify as a current asset? Accounts receivable Cash Land Office supplies

Land

A person or concern, usually a bank, that has been ordered to make payment on a check or draft is called the drawee drawer maker payee

drawee

A person or company who will receive payment on a promisory note, check, draft or money order is called the drawee drawer maker payee

payee

A synonym for fair wear and tear of a durable asset is antiquated depreciation obsolescence redundant

depreciation

F.I.C.A. refers to city tax federal income tax social security tax state income tax

social security tax

A language of business employed to communicate financial information based upon the recording, classification, summarization, and interpretation of financial data is called accounting budgeting financial management merchnadising

accounting

Property of a relatively permanent nature used in the operation of a business and not intended for resale is called current asset current liability fixed asset fixed liability

fixed asset

Assets = Liabilities + Owner's Equity is the accounting equation expanded accounting equation formula for determining net worth formula for GAAP

accounting equation

Debts that are not due and payable within a year are called current assets current liabilities fixed assets fixed liabilities

fixed liabilities

The increase in net worth due to the excess of income over costs and expenses is called loss overhead principal profit

profit

The difference between cost of goods sold and their selling price is called cost of goods available for sale ending inventory gross profit net profit

gross profit

Money paid for the use of money is called bad debts interest petty cash principal

interest

The excess of current assets over current liabilities is called net worth overhead total capital working capital

working capital

The difference between net sales and cost of goods sold is gross margin interest principal sales tax

gross margin

A written promise of a customer to pay the business a sum of money at a future date is called a/an accounts payable accounts receivable note payable note receivable

note receivable

What are goods purchased for resale at a profit? capital fixed assets merchandise supplies

merchandise

A disbursement is a budget footing payment receipt

payment

The person who orders the bank to make payment of a financial instrument is properly termed a/an drawee drawer endorser payee

drawer

What would be the closing entry to close the revenue account? Debit capital, credit revenue Debit expense and revenue summary, credit revenue Debit revenue , credit expense and revenue summary Debit revenue, credit expenses

Debit revenue , credit expense and revenue summary

The sole owner of a business is a drawer maker partner proprietor

proprietor

Income received but not yet earned is a bad debt deferred income interest net profit

deferred income

A fund of currency and coin established for the payment of small amounts of money is accounts payable drawing account fixed assets petty cash

petty cash

A paper showing quantity, description, prices of items, total amount of purchase, and terms of payment is a/an deposit slip invoice journal ledger

invoice

The difference between total sales and sales returns and allowances is net loss net profit net sales net worth

net sales

One who has made a sale is called a/an consignor maker payee vendor

vendor

The amount added to the cost of an article to determine the selling price of that article is the interest mark up net profit other income

mark up

An estimate of revenue and probable expense for a given period of time is a balance sheet bank statement bill budget

budget

A total written in small pencil figures, under the last entry in a column is the assets balance footing journalizing

footing

The person or business concern to whom a shipment is made is a consignee drawee payee vendee

consignee

A double line under the last entry on a T-account means do not post this entry the entry is complete the entry is correct there is more to do to the entry

the entry is complete

A distribution of profits of a corporation to its stockholders as declared by the board of directors is dividend gross earnings interest investment

dividend

Increases in the owner's equity resulting from business operations is known as income interest overhead principal

income

That portion of a plant asset's original cost that cannot be depreciated is called cost mark-up scrap value take home pay

scrap value

The basic accounting theory is based upon double entry single entry triple entry both A & B

double entry

A decrease in net worth due to excess of costs and expenses over income is loss proprietorship retained earnings take home pay

loss

The acronym REID is used when closing temporary accounts correcting journal entries making adjustments to the ledger posting journal entries to the ledger

closing temporary accounts

The merchandise that business keeps on hand for sale is the fixed assets inventory overhead supplies

inventory

The period of time required to purchase goods and services and turn them back into cash is called a calendar year a fiscal year the accounting cycle the normal operating cycle

the normal operating cycle

Which of the following represents the difference between the total assets and the total liabilities? 1. Capital 2. Net income 3. Net worth 4. Owner's equity 1 only 1 and 2 only 1, 2 and 4 only 1, 3, and 4 only

1, 3, and 4 only

A ledger is a book of accounts accounting statements original entry trial balance

accounts

An entry on the debit side of the owners equity indicates that the account has been decreased increased both neither

decreased

An entry on the credit side of an expense account indicates the account has been adjusted balanced closed increased

closed

The holder or person owning stock in a corporation is the accountant director maker stockholder

stockholder

The book of original entry is in alpha-numeric order chronological order highest to lowest order numeric order

chronological order

The debts one owes are assets expenses income liabilities

liabilities

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 expenses amounted to $4,000. Which of the following statements is true? 1. net income = $2,000 2. net loss = 3. owner's equity = $30,000 4. owner's equity = $70,000 1 and 3 1 and 4 2 and 3 2 and 4

1 and 3

The things one owns are assets capital accounts liabilities revenues

assets

Accounts payable is a/an asset account expense account liability account owner's equity account

liability account

Sales minus cost of goods sold equals gross profit net profit overhead operation expenses

gross profit

The amount of depreciation taken during the current fiscal year is properly termed accumulated depreciation cumulative depreciation current depreciation depreciation expense

depreciation expense

Goodwill is classified as a/an intangible asset liability account revenue account tangible asset

intangible asset

The decrease in the value of a fixed asset is called a discount an obsolescence credit depreciation

depreciation

What is another name for the Profit and Loss Statement? Balance Sheet Income Statement Statement of Financial Condition Work Sheet

Income Statement

What is the process of recording information in the ledger? balancing editing journalizing posting

posting

The amount of income from the sale of funeral services would be shown on which formal financial statement? Balance Sheet Profit and Loss Statement Trial Balance Work Sheet

Profit and Loss Statement

What is the primary purpose of a business? prestige profit sales service

profit

The left side of a standard account is called the credit side debit side profit side sales side

debit side

The only time the debit side of the revenue account is used is when you make adjusting entries closing entries journalizing entries posting entries

closing entries

Income earned but not received is called accrued income deferred income fiscal income future income

accrued income

When cash is spent in the acquisition of an asset the impact on the accounting equation is the asset cash is credited the asset cash is debited the new asset is credited the owner's equity is credited

the asset cash is credited

The totaling of a column of a journal or ledger is called footing journalizing posting summarizing

footing

An entry on the credit side of a liability account indicates that the account has been audited balanced decreased increased

increased

What is the cost of operating a business called? accounts payable fixed liabilities overhead revenue loss

overhead

Checks returned to the depositor that have been paid by the bank are canceled checks deposit checks order checks outstanding checks

canceled checks

Working capital is a measure of investing activities leverage liquidity profitability

liquidity

A check that has been issued but not presented for payment to a bank is called a canceled check deposited check order check outstanding check

outstanding check

The debit side of the T-account is the left side minus side plus side right side

left side

A book in which the daily transactions of a business are first written is the index ledger journal schedule

journal

Accounts receivable which are uncollectable are accrued income bad debts fixed assets incurred income

bad debts

The credit side of the T-account is the left side minus side plus side right side

right side

A ledger must contain all accounts assets cash disbursed liabilities

all accounts

A decrease in owner's equity resulting from a business transaction is a/an expense income liability net worth

expense

A loan from a bank secured by property is a mortgage payable a note receivable an account payable an asset

a mortgage payable

An increase to which account will increase owner's equity? Account Payable Client Fees Drawing Rent Expense

Client Fees

Salary expense is considered to be a cost of goods sold an operating expense capitalization fixed expense

an operating expense

A term which is used synonymously with operating expense is cost of goods sold gross profit net sales overhead

overhead

Posting is a/an form of advertising recording of figures transfer of figures from the journal to the ledger transportation of figures

transfer of figures from the journal to the ledger

When delivery revenue is earned on account, which accounts increase and decrease? Accounts Receivable decreases; Revenues decreases Accounts Receivable increases; Revenues decreases Accounts Receivable increases; Revenues increases Cash increases; Revenues increases

Accounts Receivable increases; Revenues increases

Accounts receivable are examples of assets income liabilities proprietorship

assets

An employee is paid a salary of $1,850 per month. He/she is also paid time and a half for all hours worked in excess of forty hours per week. If she/he worked 62 hours last week, what would be the employee's gross earnings for the week? $569.41 $629.14 $779.14 $869.41

$779.14

A special fund for use in disbursing small sums of money is called a/an impress fund loan fund petty cash fund working fund

petty cash fund

A journal designed for recording a particular type of transaction is known as a/an combination journal general journal general ledger special journal

special journal

Mr. Quigley is paid an hourly rate of $5.00 per hour. He is also paid time and a half for any hours worked in excess of 40 hours per week. For the current pay period, he worked a total of 60 hours. If his FICA tax is 6%, and his withholding is 10%, what is his take home pay for the week? $294.00 $315.85 $329.00 $350.00

$294.00

If a funeral home sells a funeral service on a 30 day account, the entry to record the transaction would be to debit accounts payable, credit purchases debit accounts receivable, credit sales debit notes receivable, credit sales debit sales, credit accounts receivable

debit accounts receivable, credit sales

Liability accounts are indentified by the account title followed by the word drawing expense payable revenue

payable

If a funeral director receives payment from a client who had purchased a service on a 30 day account, he/she would make which of the following entries in the journal debit accounts receivable, credit cash debit cash, credit accounts receivable debit cash, credit sales debit purchases, credit cash

debit cash, credit accounts receivable

Expenses are listed on which of the following reports? 1. Balance Sheet 2. Income Statement 3. Profit and Loss Statement 4. Statement of Financial Condition 1 and 2 1 and 3 2 and 3 2 and 4

2 and 3

If a funeral home purchases caskets from a casket company on a 30 day account, the funeral home accountant would record the transaction as follows debit purchases, credit accounts payable debit purchases, credit account receivable debit purchases, credit cash debit sales, credit purchases

debit purchases, credit accounts payable

The report that shows the financial condition of the business at a point in time is called the 1. Balance Sheet 2. Income Statement 3. Profit and Loss Statement 4. Statement of Financial Condition 1 and 2 1 and 4 2 and 3 3 and 4

1 and 4

A funeral car is purchased by a funeral home for $30,000. The vehicle will be used for five years and then replaced. If the estimated slavage value will be $5,000, what will be the amount of yearly depreciation using the straightline method of depreciation for computation? $2,000 $3,500 $5,000 $6,500

$5,000

Methods of depreciation that allow the business to recover the cost early in the life of the asset include 1. accumulated depreciation 2. double declining balance 3. straight line depreciation 4. sum of the years digits 1 and 3 1 and 4 2 and 3 2 and 4

2 and 4

The accounting equation may be stated as 1. liabilities = assets + owner's equity 2. assets + liabilties = owner's equity 3. assets = liabilties + owner's quity 4. assets - liabilities = owner's equity 1 and 2 1 and 3 2 and 4 3 and 4

3 and 4

The account that provides a current or future benefit to the business is properly termed a drawing account a liability account an asset account an expense account

an asset account

When you recognize revenue when it is earned, and expenses when they are incurred you are operating under the accrual basis of accounting cash basis of accounting fiscal basis of accounting modified cash basis of accounting

accrual basis of accounting

Which of the following would be a Statement of Financial Condition? Asset List Balance Sheet Liability Listing Owner's Equity Sheet

Balance Sheet

What is current assets divided by current liabilities? Current Ratio Depreciation Valuation Working Capital

Current Ratio

What is a summary of the results of operations for a specified period of time? Balance Sheet Ledger Journal Profit and Loss Statement

Profit and Loss Statement

What is the excess of current assets over current liabilities? Debt Net Capital Notes Payable Owner's Equity

Net Capital

Who is the person or business concern by whom shipment is made? Consignor Creditor Drawer Drawee

Consignor

What is the difference between assets and liabilities? Accounts Payable Accounts Receivable Fixed Income Owner's Equtiy

Owner's Equtiy

With which type of business would you have stockholders? A Corporation A Partnership A Proprietorship Answer Text

A Corporation

What is a written promise that pledges real property as security for the payment of a debt? Account Payble Interest Investment Mortgage Payable

Mortgage Payable

What is a document issued by a state which permits a corporation to operate? A Charter A Consignor Agreement A Permit of Operations A Propietorship

A Charter

What are assets which will not be sold during the fiscal period? Captial Current Assets Fixed Assets Fixed Liabilities

Fixed Assets

What is the money or other assets supplied by the owner for the operation of a business? Interest Investment Mortgage Negotiable Instrument

Investment

Which of the following is levied on the earnings of individuals and businesses by federal, state and local government? Accrued Liability Tax Depreciation Income Tax Sales tax

Income Tax

Accounting Flashcards

(150 cards)