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Mortuary Management > Exam 1 Questions > Flashcards

Exam 1 Questions Flashcards

(69 cards)

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1
Q

True or False

An accounting period is based on the balance sheet

A

False

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2
Q

A calendar year is based on the months of _____________________

A

January 1 - December 31

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3
Q

The normal financial procedures that take place over a period of time are known as:

A

Accounting Cycle

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4
Q

When journalizing a transaction, the dollar amount for the ________ is recorded first.

A

debit

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5
Q

The accounting cycle takes place in a period of time called the _____________________.

A

accounting period

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6
Q

What separates each transaction recorded in the journal?

A

A blank line

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7
Q

When we transfer the transaction from the journal to the ledger the activity is called ______________

A

Posting

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8
Q

In the ledger, how are we able to determine the balance of an account?

A

Subtract credit / debit (lower from higher amount) and determine the difference between the two

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9
Q

The list of individual accounts on the worksheet, with their balances taken from the ledger is called the _____________

A

Trial Balance

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10
Q

True or False

In the trial balance, debits and credits do not have to be equal

A

False

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11
Q

To make a correction before posting

A
  1. Draw a line through incorrect entry
  2. Write correct info above
  3. Initial it
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12
Q

True or False

To make a correction after posting, draw a line through the error and write the correct figure above it. Change the running balance to reflect the corrected posting

A

True

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13
Q

A business transaction occurs and generate document in what step of the accounting cycle?

A

1st Step

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14
Q

Analyze and record business transactions into a journal occurs in what step of the accounting cycle?

A

2nd step

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15
Q

In step four of the accounting cycle a(n) ________________ is prepared.

A

Trial Balance

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16
Q

Which of the following is not a part of the worksheet?

A

Statement of Owner’s Equity

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17
Q

True or False

Adjustments from the worksheet are journalized in the same journal as step 2

A

True

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18
Q

Financial statements are prepared from the ___________

A

Worksheet

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19
Q

Which of the following are not included on the balance sheet section of the worksheet?

A

Expenses

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20
Q

True or False

The income statement only includes assets and liabilities

A

False

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21
Q

True or False

The balance sheet section totals on the worksheet do not match the formal balance sheet

A

True

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22
Q

The correct formula for the straight line method of depreciation consists of:

A

Cost of Equipment - Residual Value
_____________________________________
Estimated years of depreciation

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23
Q

The Formal Income Statement lists the following two account categories:

A

Revenue
Expenses

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24
Q

When accumulated depreciation is ___________ from equipment, the balance of the equipment is then _____________

A

Subtracted
Decreased

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25
Withdrawals from the Owner's Equity account:
reduces the balance
26
Journalizing and posting adjusting entries occurs in step ________
7
27
Step 8 in the accounting cycle consists of:
Journalizing and Posting Closing entries
28
Preparing a post closing trial balance occurs in step __________
9
29
The Post Closing trial balance lists only _______________ accounts in the ledger and their balances after adjusting and closing entries have been posted
Permanent
30
When the closing process is complete, the accounting equation will be reduced to:
Assets = Liabilities + Ending Capital
31
Which endorsement consists of a mere signature and is the least secure?
Blank Endorsement
32
Which endorsement designates a particular person to whom payment is to be made?
Special / Full Endorsement
33
Which endorsement limits the liability of the endorser?
Qualified Endorsement
34
Which endorsement prevents the use of the instrument for anything except the stated use?
Restrictive Endorsement
35
The ___________ is defined as the one to whom the check is payable
Payee
36
The _________ is defined as the one who pays the money to the payee
Drawee
37
The __________ is defined as the one who writes the check
Drawer
38
Which is not true of overtime pay? It only applies to your bimonthly period It is a federal law Anything over 40 hours must be paid as overtime It applies to a seven-day work period
It only applies to your bimonthly period
39
________ is a program you pay into now for others and later others will pay you
FICA
40
_______ is a federal tax that you pay to support the federal government
FIT
41
_____________________ is paid by the employer and based on your job description rated on a scale of 1 to 10, should you become injured on the job
Worker's Comp
42
This pay is based on the number of hours you work and your hourly pay
Gross Pay
43
2/10, n/30 means
2% discount if paid within 10 days Net is paid in full in due within 30 days
44
n/10, EOM means
No discount Must pay full within 10 days after end of month
45
This inventory system continually monitors the level of inventory -
Perpetual
46
This inventory system is taken at the end of each accounting period, the cost of unsold goods is calculated
Periodic
47
Revenue earned from the sale of merchandise to customers is known as
Gross Sales
48
_____________ is a contra-revenue account with a debit balance
Sales Returns and Allowances (SRA)
49
The formula for Net Sales is
Gross sales - Sales Discounts - SRA = Net Sales
50
The sale of merchandise on account (EOM) is recorded in the special journal known as _____________
Sales Journal
51
Paying cash is recorded in the special journal known as _______________
Cash Payments Journal
52
Receiving cash from any source is recorded in the special journal known as ____________
Cash Receipts Journal
53
Buying supplies / merchandise on account is recorded in the special journal known as ________________
Purchases Journal
54
A ledger that contains only an account of a single type and is not listed on the chart of accounts is known as a _______________
Subsidiary Ledger
55
The sum of the accounts receivable subsidiary ledger will equal the ending balance in accounts receivable, the controlling account in the general ledger. This is known as ____________
Proving
56
When recording from the Sales Journal to the Accounts Receivable Subsidiary Ledger, which of these are true?
All of the above
57
The Posting at EOM from the Sales Journal to the General Journal includes:
All of the above
58
An account in the general ledger that accumulates the amount of sales tax owed to the government
Sales Tax Payable
59
Sales Tax ___________ is a new account, it is a liability account in the general ledger with a credit balance
Payable
60
The __________ account records all merchandise bought for resale. This account has a debit balance and is classified as a cost
Purchases
61
The account that records a decrease in a buyer's cost is a contra-cost account called the ___________ account
Return and Allowances
62
The account that records a company's discount is called the _____________ account
Purchases Discount
63
The formula for Net Purchases is:
Purchases - Returns & Allowances - Purchases Discounts = Net Purchases
64
Goods transported in bulk by truck, train, ship, or plane are known as ____________
Freight
65
The shipping method in which the seller pays shipping charges and legal title passes to the buyer when goods reach their destination is known as _____________
FOB Destination
66
The shipping method in which the buyer pays shipping charges and legal title passes to buyer when goods are shipped is known as ___________
FOB Shipping Point
67
Which of the following are a component of the final Income Statement
All of the above
68
True or False Additional investment(s) by the owner would be added to his or her beginning capital amount
True
69
True or False The statement of owner's equity is the same for a merchandise business as for a service firm
True

Mortuary Management (8 decks)

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