Basic Accounting

Front 1

Assets, Liabilities and owners equity are located on the:

Back 1

Balance Sheet

Front 2

Which account is used to close the revenue and expense accounts:

Back 2

Income summary

Front 3

Revenue, expenses and net profit or loss are entered on the:

Back 3

Income statement

Front 4

Method of charging uncollectable accounts expense in the period when the sales are recorded:

Back 4

Allowance method

Front 5

Method of recording uncollectable account losses as they occur:

(also used for tax purposes)

Back 5

Direct charge off method

Front 6

What is GAAP:

Back 6

Generally accepted accounting principles

Front 7

Who is represented by the SEC:

Back 7

Public sector and the government

Front 8

Who is represented by the FASB:

Back 8

Private sector and Businesses

Front 9

Created by the Sarbanes Oxly act, oversees CPA firms that audit publicly held companies:

Back 9

Public company accounting oversight board

Front 10

What is FASB:

Back 10

Financial accounting standards board

Front 11

What is AICPA:

Back 11

American institute of certified public accountants

Front 12

In 1973 AICPA and other groups formed:

Back 12

FASB (federal accounting standards board)

Front 13

What group has 7 full time members with distinguished accounting backgrounds and is responsible for developing financial accounting and reporting standard principles:

Back 13

FASB (federal accounting standards board)

Front 14

Formed to develop standards that can be adopted around the world:

Back 14

IASB (international accounting standards board)

Front 15

What organization required corporations to publish annual reports as early as the 1930's and required independent audits for corporations since 1933:

Back 15

NYSE (New York stock exchange)

Front 16

Organization that has many members who teach accounting and write textbooks and articles:

Back 16

AAA (American accounting association)

Front 17

Merchandise inventory is recorded in the:

Back 17

Income statement credit and balance sheet debit columns

Front 18

Net income for an accounting period appears on the worksheet in the:

Back 18

Income statement debit and balance sheet credit columns

Front 19

Uncollectable accounts is a contra asset account, true or false?

Back 19

FALSE

Front 20

An adjusting entry is not required for a revenue item when:

Back 20

it is paid by the customer, recorded and earned in the same period

Front 21

allowance for doubtful accounts is:

Back 21

subtracted from accounts receivable in the assets section of the balance sheet

Front 22

(accruals)

Revenue is recognized when a sale is:

Back 22

complete, a sale is complete when title to the goods passes to the customer or when the service is provided

Front 23

revenue is recognized when the sale occurs even though the cash is not immediately collected:

Back 23

Sales on account

Front 24

The merchandise inventory account is debited when goods are purchased for resale and credited when goods are sold and delivered to customers, true or false:

Back 24

FALSE

Front 25

Under the accrual basis of accounting, only the income that has been earned appears on the income statement, true or false:

Back 25

True

Front 26

Formula for calculating interest:

Back 26

Principle x Rate x Time = interest

Front 27

Balances due to insurance companies are recorded as a:

Back 27

Liability by an adjusting entry

Front 28

Generally, the base earnings subject to state unemployment tax is:

Back 28

Smaller than the base for social security

Front 29

The returns for Federal unemployment tax are done:

Back 29

Annually

Front 30

The entry to record the social security and medicare taxes levied on a business includes a debit to payroll taxes expense, true or false:

Back 30

True

Front 31

Form 940 must be filed quarterly, true or false:

Back 31

FALSE

Front 32

what does form W3 verify:

Back 32

total social security tax withheld

Front 33

Employers annual federal unemployment tax return form (pre-printed) government form

Back 33

940-EZ

Front 34

The concept that a firm will operate indefinitely:

Back 34

Going concern assumption

Front 35

The concept that records are kept in terms of money and that the value of money is stable:

Back 35

Monetary unit assumption

Front 36

The concept that income should be reported in certain time periods

Back 36

Periodicity of income

Front 37

The principle that requires assets to be recorded at their cost at the time they are aquired:

Back 37

Historical cost basis

Front 38

Determining the period in which to record revenue and report it on the income statement:

Back 38

Recognition

Front 39

The concept that revenue and costs incurred in earning that revenue should be matched in the appropriate accounting period:

Back 39

Matching principle

Front 40

Requirement that all information that might affect the users interpretation of financial statements be disclosed in the statements or the footnotes:

Back 40

Full disclosure principle

Front 41

Assets are:

Back 41

economic resources

Front 42

Liabilities and owners equity are:

Back 42

Claims to economic resources

Front 43

D.E.A.D is:

Back 43

Debits increase expenses, assets, and dividends

Front 44

A record of payroll and other information for each employee for the payroll period:

Back 44

Payroll register

Front 45

Income tax return:

Back 45

Form 1040

Front 46

Employees witholdings:

Back 46

W4

Front 47

An account used to record the cost of goods bought for resale during a period:

Back 47

Purchase account

Front 48

returns or allowances are recorded in the:

Back 48

General Journal

Front 49

A firm uses special journals, the purchase of merchandise for cash is recorded in the:

Back 49

Cash payments journal

Front 50

The amount of purchases for a period is represented in:

Back 50

The cost of goods sold section of the income statement

Front 51

When a supplier is selected, the purchasing department issues a form called a:

Back 51

Purchase order

Front 52

Purchases of merchandise on credit should be recorded in the:

Back 52

Purchases Journal

Front 53

A balance that is circled in the accounts payable ledger is a credit balance, true or false:

Back 53

FALSE

Front 54

Credit purchases of suppliers to be used in business are entered in the:

Back 54

General Journal

Front 55

Purchases on credit post to:

Back 55

Purchases journal

Front 56

Returned goods are recorded in:

Back 56

General Journal

Front 57

Purchases on cash are recorded in:

Back 57

Cash payments journal

Front 58

A customers returned by the bank would include:

Back 58

A debit to accounts receivable and a credit to cash

Front 59

The entry to replenish the petty cash fund:

Back 59

Debit to various expense accounts and a credit to cash

Front 60

The collection of sums on account from credit client customers is recorded in the:

Back 60

Cash receipts journal