Accounting Flashcard

Front

If total liabilities are $75,000 and owner’s equity is $150,000, total assets must be

Back

$250,000.

Front

Jackson Company received cash on account from customers, $2,300. The accountant would record a

Back

credit to accounts receivable, $2,300.

Front

Kaufman Company had a beginning normal balance of $15,000 in the accounts payable account. The accountant posted a $5,000 credit on May 6, a $2,500 credit on May 14, and a $8,000 debit on May 26. What is the balance of accounts payable in the general ledger?

Back

$15,500 credit

Front

In the accounting process, the second step is to

Back

post entries to the ledger accounts.

Front

Anderson’s Architectural Design works a five-day workweek and pays $30,000 in salaries every Friday. If the accounting period ended on a Wednesday, what would be the proper adjusting entry? Options: Debit Salaries Expense $12,000; credit Salaries Payable $12,000, Debit Salaries Expense $18,000; credit Salaries Payable $18,000, Debit Salaries Expense $24,000; credit Salaries Payable $24,000, Debit Salaries Expense $30,000; credit Salaries Payable $30,000

Back

Debit Salaries Expense $18,000; credit Salaries Payable $18,000

Front

If the Income Statement Debit and Credit columns on a worksheet are not equal after adding the respective columns,

Back

an error has been made.

Front

After journalizing and posting adjusting entries to the general ledger, the balances in the accounts should agree with the balances shown on the adjusted trial balance.

Back

adjusted trial balance.

Front

Which of the following is not a result of the closing process?
The owner’s capital account has a zero balance.
The owner’s drawing account has a zero balance.
The revenue account has a zero balance.
Expense accounts have zero balances.

Back

The owner’s capital account has a zero balance.

Front

When transferring a net income for the period to the owner’s capital account,

Back

the owner’s capital account is credited.

Front

The Income Statement column on the work sheet for Heidi’s Swiss Chocolates had the following expenses: Wage Expense 2,600, Utilities Expense 1,400, Depreciation Expense 1,500. Which of the following is true regarding the closing of these accounts?

Back

Income Summary will be debited for $5,500.