Accounting

Front 1

The chart of accounts includes assets liabilities and owner's equity accounts only?

Back 1

False

Front 2

After posting journal information to the ledger accounts a check mark should be entereing in the posting reference column of the hournal to indicate that the transaction item has been posted

Back 2

False

Front 3

The owner's captial account in the last two columns of the work sheet is an up to date account and includes net income and withdrawals of the current period

Back 3

False

Front 4

A contra account in sused with related accounts to bring about an increase in the net amount of the two account balances

Back 4

False

Front 5

A computer workstation cost $28.000 has an expected life of 7 yeras and an expected salvage value of $7,000. Depreciation expense using the straight line method will be $3000 per year

Back 5

True

Front 6

Purchase invoices received from suppliers provide information about

Back 6

purchases of goods

Front 7

For every transaction the accountant enters the

Back 7

day

Front 8

the simplest form of journal is one with

Back 8

two columns

Front 9

service revenue received in cash is entered by

Back 9

debiting cash and crediting service revenue

Front 10

every entry in the hournal sould include all of the following except

Back 10

the balance of the accounts affected

Front 11

In completing the worksheet what is the reason for adding the net income for the year to the Balance sheet credit column

Back 11

Owner's equity is not up to date

Front 12

Net income is shown on the worksheet as

Back 12

debit int he Income Statement column

Front 13

What does the credit balance in the accumulated depreciation account represent

Back 13

the amount of depreciation taken the in past years

Front 14

The adjusting entry for the depreciation of office equipment for the period includes

Back 14

debiting depr exp office equipment and crfediting acc dep off equip

Front 15

the first pair of columns on a 10 column worksheet would be the

Back 15

trial balance columns

Front 16

when assets are recorded at original value they are recorded under the

Back 16

historical cost principle

Front 17

an asset cost 33,000 it has an expected useful life of 5 years and an expected salvage value of 3,000 deor expense for the first year of the assets life using the straight line method is

Back 17

6,000

Front 18

The work sheet column that show the amounts that will be reported in the statement of OE and balance sheet

Back 18

Balance sheet columns

Front 19

A principle that requires the matching of revenues earned during an accounting period with the expenses incurred to produced the revenues

Back 19

matching principles

Front 20

principle requires assets to be recorded at their actual cost

Back 20

historical cost principle

Front 21

matching assets original cost against revenues produced over useful life

Back 21

depreciation

Front 22

period of time assets expected to produce revenues

Back 22

useful life

Front 23

expecteted market value of asset at end of useful life

Back 23

salvage value

Front 24

12 month period for which financial reports are prepared

Back 24

fiscal year

Front 25

form used to pull all infor to enter adjusted entries & prepare financial statements

Back 25

worksheet

Front 26

cost of an asset subject to depreciation

Back 26

depreciable cost

Front 27

amount of an item can be sold for under normal eco conditions

Back 27

market value

Front 28

account with credit balance deducted from related asset acct on balance sheet

Back 28

contra asset

Front 29

depr method which depr cost divided by est useful life

Back 29

straight line method

Front 30

journal entries at tend of acct pd to reflect changed in acct balances not direct result of exhange with outside party

Back 30

adjusting entries

Front 31

assets of durable nature used for operations over several years

Back 31

plant assets

Front 32

3rd part of amount column on work sheet

Back 32

adjusted trail balance columns

Front 33

Financial statement that should be completed first is the

Back 33

income statement

Front 34

person who reviews operationg and acfct control pordecures adopted bu management to make sure controls are adequate

Back 34

internal auditor

Front 35

person who records or enters infor in acct records may be refereed to as

Back 35

accounting clerk

Front 36

cost acct provide wide variety of service including

Back 36

analyzing cost effectiveness of products and services that are produced

Front 37

Does NOT use nonprofit acct guidelines and procedures

Back 37

proprietorships

Front 38

a credit

Back 38

is on right side

Front 39

invest of cash in business by owner

Back 39

increases cash

Front 40

coporation is usually manages by

Back 40

a professional manager

Front 41

stockholders own which type of business

Back 41

corporation

Front 42

debit

Back 42

is on left side

Front 43

purchase of an asset on accoutn and making a partial payment results in all of following EXCEPT

Back 43

increase in OE

Front 44

example of expense

Back 44

advertising

Front 45

accounting equation may be expressed as

Back 45

OE-assets=liabilities

Front 46

credit represents a decrease in

Back 46

an asset

Front 47

drawing acct should be used to show

Back 47

amoutn owner has taken out of business

Front 48

liability owner's capitial and revenue accoutns normally have

Back 48

credit balances

Front 49

Increasees OE may be from

Back 49

revenue that is derived from sales of goods or services

Front 50

Jason purchased office equipment for $4,800 on account. Transaction would

Back 50

increaset assets and decrease liabilities

Front 51

Example of expense is

Back 51

supplies consumed

Front 52

Falance received 7,000 in cash from client fro pro serviceces transaction would

Back 52

increase assets and increase OE

Front 53

reviewing operation and acct control prodcedures adopted by management to make sure controls are adequate and being followed assuring accurate and timely info

Back 53

internal auditing

Front 54

bring various items of infor to determine result

Back 54

summarizing

Front 55

looking at events that have taken place and thinking how they affect the business

Back 55

analyzing

Front 56

focusing on tax planning, preparing tax returns, dealing with IRS and other gov agencies

Back 56

tax acct

Front 57

business that buys products to sell

Back 57

merchandising business

Front 58

business that makes products to sell

Back 58

manufacturing business

Front 59

accountants help managers develop a financial plan

Back 59

budgeting

Front 60

procedures and guidelines develiped by FASB followed in acct and reporting process

Back 60

gaap

Front 61

deciding meaning of importance of infor in various reports

Back 61

interpreting

Front 62

type of ownership strcture in which one person owns business

Back 62

sole proprietorship

Front 63

entering financial infor about events affeting company into acct sustem

Back 63

recording

Front 64

generally supervises work of acctr clerks helps with daily acct work and summarized acct info

Back 64

bookeeper

Front 65

more than one person owns business

Back 65

partnership

Front 66

ownership stockholders owns business

Back 66

corporation

Front 67

business that provides service

Back 67

service business

Front 68

reviewing and testing to be certain proper acct policies and practices have been followed

Back 68

auditing

Front 69

sorting and grouping similar items together

Back 69

classifying

Front 70

includes preparing various reports and financial statements and analyzing operating, investing and financing decision

Back 70

financial accct

Front 71

sustem of gathering financial info about a business and reporting infor to users

Back 71

accounting

Front 72

Self employment tax is double SS and med rates

Back 72

True

Front 73

med tax is applied to all employee earnings

Back 73

true

Front 74

payments from petty cash fund should not be made with out obtaining some sort of receipt in return

Back 74

true

Front 75

journal entry to record payroll transaction for acct period to debit wages and salaries expense for gross pay and credit appropriate liability and cash acct

Back 75

true

Front 76

fair labor standards act provides 1.5 ot

Back 76

true

Front 77

outstanding checks are chekcs issued that have no yet been presented to bank for payment

Back 77

true

Front 78

unless employer has only a few employees manual systems can be inefficent

Back 78

true

Front 79

amoutn of employers med taxes is computed by multiplying by 1.45%

Back 79

true

Front 80

workers comp provides insurance for employees who suffer job related illness or injury

Back 80

true

Front 81

business commply use cash register tape that accumulate a record of the days cash receipts

Back 81

true

Front 82

from 941 emplyrs quarterly tax return

Back 82

true

Front 83

balance in cash acct on depositors books will be same as bank balance

Back 83

true

Front 84

business cash includes currency coins check money in chekcing acct money orders and bank cashiers checks

Back 84

true

Front 85

payroll expenditures rep small part of total expenditures

Back 85

false

Front 86

ind contrator performs service for fee and doesnt work under control of company

Back 86

true

Front 87

emploery pays total cost of

Back 87

workers comp

Front 88

employers usually prepare which of the following types of payroll records

Back 88

payroll register, employee earings record, and payroll chekc

Front 89

rules by which employers must deposit ss and med taxes cna be found in

Back 89

circular e

Front 90

journalize employers payroll taxes, need to credit all following acct except

Back 90

payroll tax expense

Front 91

when all taxes have been paid payroll tax liablilty accoutn will have

Back 91

zero balance

Front 92

key source of infor for computing employer payroll tax is

Back 92

payroll register

Front 93

process op bring book and bank balance in to agree ment is called

Back 93

reconciling the bank statement

Front 94

output from manual or electronic payroll acct system inc all of the following except

Back 94

time cards

Front 95

any person who agrees to perform a service for a fee and is not subject to control of those for whom the service is performed is called a

Back 95

independent contractor

Front 96

atm machine depositor must have a

Back 96

pin number

Front 97

self employment tax is required of an individual who owns his or her own business and makes

Back 97

$400 or more

Front 98

check written to establish the petty cash fund is entered in journal by

Back 98

debiting petty cash and crediting cash

Front 99

multi column form used to assemble computer and summarize data for all employees at end of payroll period is an

Back 99

payroll register

Front 100

when all taxes have been paid payroll tax liablilty accoutn will have

Back 100

zero balance

Front 101

key source of infor for computing employer payroll tax is

Back 101

payroll register

Front 102

process op bring book and bank balance in to agree ment is called

Back 102

reconciling the bank statement

Front 103

output from manual or electronic payroll acct system inc all of the following except

Back 103

time cards

Front 104

any person who agrees to perform a service for a fee and is not subject to control of those for whom the service is performed is called a

Back 104

independent contractor

Front 105

atm machine depositor must have a

Back 105

pin number

Front 106

self employment tax is required of an individual who owns his or her own business and makes

Back 106

$400 or more

Front 107

check written to establish the petty cash fund is entered in journal by

Back 107

debiting petty cash and crediting cash

Front 108

multi column form used to assemble computer and summarize data for all employees at end of payroll period is an

Back 108

payroll register