Accounting Final Interim Review

Accounting Final Interim Review

Mrs. Carter

Items for today:

• Schedule for Tuesday and Wednesday for Star Testing

• Date of Final Interim for Accounting - Wednesday, Jan. 6

• Review for the Accounting Interim.Assignments for the week.

Open Ended

Type your first and last name.

How to calculate Social Security and Medicare

• Multiply total earnings by the tax rate for each.

W4 Form

Form initially used to report an employee's withholding allowances. Determines how much, in taxes, is deducted from you gross pay.

Ledger

• form summarizes all the changes to a single account in one place

Two Steps to Opening a General Ledger Account

• Write the account name.

• Write the account number, from the chart of accounts.

Items that are caused by an error in posting:

• Overpayment to a vendor

• understated income

• unequal cash balances

• all of these

Steps in posting to an accounts receivable ledger:

• Write the date in the ledger.

• Write journal page number in the ledger.

• Write the Credit or debit amount in the ledger.

• Add or subtract the credit or debit column to the previous balance in the ledger.

• Write the customer number in the Post. Ref. column of the journal.

Merchandise Inventory Adjustment

When you record an adjustment to Merchandise Inventory, the other account affected is Income Summary.

Matching Expenses with Revenue

• The recording, in the same accounting period, of the revenue from business activities and the expenses associated with earning that revenue

Multiple Choice

A financial statement showing the revenue and expenses for a fiscal period is called a(n):

• balance sheet

• income statement

• chart of accounts

• statement of owner's equity

Income Statement

financial statement showing the revenue and expenses for a fiscal period.

Temporary Accounts

• Accounts that are used to gather information until it is transferred to a permanent account.

Open Ended

Type the accounting equation.

Accounting Equation

Transaction

• business activities that change the accounting equation

Multiple Choice

Is the left side of a T-account a debit or credit?

• Debit

• Credit

T Account

Debit is always on the left side.

Credit is always on the right side.

Chart of Accounts

A list of accounts used by a business.

Journal

A form used to record transactions in a chronological order.

Owner's Investment Journal Entry

• Owner deposits cash into the business account.

• This is placed in the Owner's Capital account.

Closing Entries and Owner's Capital Account Balance

• When all closing entries are completed,

• the Owner's Capital Account should be the same as the Capital Account on the Balance Sheet.

Double Entry Accounting

• The concept that you record a debit and credit for each transaction.

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Multiple Choice

What accounting activities make a merchandising business differ from a service business?

• the owner's capital and drawing account

• the purchasing of supplies and insurance

• the purchasing and selling of products

• the selling on account

Merchandising Business

The purchasing and selling of products makes a merchandising business different from a service business.

Temporary Accounts

• Accounts that are used to gather information until it is transferred to a permanent account.

Accounts with a normal Credit Balance

• Accounts Payable

• Capital

Accounts with a normal Debit Balance (all shown below are Asset accounts)

• Cash

• Supplies

• Insurance

Balance Sheet

A financial statement that reports the balances of asset, liability, and owner's equity accounts on a specific date.

Multiple Choice

A business that is owned by multiple people but acts as its own entity is called a(n):

• partnership

• corporation

• sole proprietorship

• owner's equity

Corporation

A business that is owned by multiple people but acts as its own entity.

Advertising Expense

When a business pays cash for advertising, Owner's Equity decreases.

Revenues and expenses affect Owner's Equity.

If a business pays cash for advertising, it is an expense associated with earning revenue for the business.

Petty Cash

An amount of cash that a business keeps on hand for small payments or purchases.

Multiple Choice

The length of time in which a business summarizes and reports financial information is called a(n):

• earning period

• fiscal period

• yearly report

• annual income statement

Fiscal Period

The length of time in which a business summarizes and reports financial information

Income Summary

When a business shows a net income, the Income Summary account has a credit balance before notating retained earnings.

Questions?