Quiz Review 1

Question 1

An accounting period is based on __________

Answer 1

a period of time

Question 2

Definition of a calendar year?

Answer 2

January 1 - December 31

Question 3

Definition of accounting

Answer 3

The process of keeping financial accounts
Process that takes bookkeeping information and prepares financial statements

Question 4

When journalizing a transaction, what is recorded first?

Answer 4

A debit (then credit)

Question 5

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

Answer 5

Accounting Period

Question 6

What separates each transaction recorded in the journal?

Answer 6

A blank line

Question 7

Definition of posting?

Answer 7

The transfer of information from the journal to the ledger

Question 8

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

Answer 8

Taking the sum of all deposits and subtracting all withdrawals

Question 9

What numbers are the Assets?

Answer 9

100-199

Question 10

What numbers are the liabilities?

Answer 10

200-299

Question 11

What numbers are the owner’s equity?

Answer 11

300-399

Question 12

What numbers are the revenue?

Answer 12

400-499

Question 13

What numbers are the expenses?

Answer 13

500-599

Question 14

In assets _________ increases
___________ decreases

Answer 14

Debit increases
Credit decreases

Question 15

In liabilities _______ increases
_________ decreases

Answer 15

Credit increases
Debit decreases

Question 16

In capital _________ increases
________ decreases

Answer 16

Credit increases
Debit decreases

Question 17

In withdrawals _______ increases
_________ decreases

Answer 17

Debit increases
Credit decreases

Question 18

In revenues _________ increases
__________ decreases

Answer 18

Credit increases
Debit decreases

Question 19

In expenses _________ increases
__________ decreases

Answer 19

Debit increases
Credit decreases

Question 20

What does the trial balance consist of?

Answer 20

All the accounts with their balances in the same order as they appear in the chart of accounts
Including Assets, liabilities, equity, revenue, expenses, gains, and losses

Question 21

In the trial balance, should debits and credits be equal?

Answer 21

Yes

Question 22

How do you make a correction before posting?

Answer 22

Cross the wrong one out, write the correct response above, and initialize it

Question 23

How do you make a correction after posting?

Answer 23

Cross the wrong one out, write the correct response above, and initialize it ???

Question 24

What is the first step in the accounting cycle?

Answer 24

Collect source documents from business transactions as they occur

Question 25

What is the second step in the accounting cycle?

Answer 25

Analyze and record business transactions in a journal

Question 26

What is the third step in the accounting cycle?

Answer 26

Post or transfer information from journal to ledger

Question 27

What is the fourth step in the accounting cycle?

Answer 27

Prepare a trial balance

Question 28

What is the fifth step in the accounting cycle?

Answer 28

Prepare a worksheet

Question 29

What is the sixth step in the accounting cycle?

Answer 29

Prepare financial statements

Question 30

What is the seventh step in the accounting cycle?

Answer 30

Journalize and post adjusting entries

Question 31

What is the eighth step in the accounting cycle?

Answer 31

Journalize and post closing entries

Question 32

What is the ninth step in the accounting cycle?

Answer 32

Prepare a post-closing trial balance

Question 33

What are the categories of the worksheet?

Answer 33

Account titles Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Question 34

Are adjustments from the worksheet journalized in the same journal as Step 2?

Answer 34

Yes

Question 35

Are financial statements prepared from the worksheet?

Answer 35

Yes

Question 36

What accounts are listed on the balance sheet?

Answer 36

Asset, Contra Assets, Liabilities, Capital, Withdrawals

Question 37

What accounts are listed on the Income Statement

Answer 37

Revenue and Expenses

Question 38

What is the straight-line method of depreciation

Answer 38

Cost of equipment - Residual value _____________________________________ Estimated years of usefulness

Question 39

What accounts are listed on the Formal Income Statement

Answer 39

Revenues and expenses

Question 40

When accumulated depreciation is __________ from equipment, the balance of the equipment is then ____________

Answer 40

subtracted Reduced

Question 41

What happens to the balance when withdrawals are made from the Owner's Equity account?

Answer 41

Debit decreases the balance

Question 42

What kind of accounts are listed in the Post Closing Trial?

Answer 42

Cash Prepaid Rent Inventory Accounts payable *Permanent account balances

Question 43

What is the accounting equation?

Answer 43

A = liabilities+ ending capital