Accounting Final Exam

The account Accounts Receivable is an example of a(n) ____.

• asset

• liability

• owner's equity

• capital

A business transaction that involves a purchase on account is considered to be a(n) ____.

• cash transaction

• credit transaction

• investment by the owner

• expense transaction

The purchase of a desk on account will increase Office Furniture and will also increase ____.

• Cash in Bank

• Accounts Payable

• Accounts Receivable

• Marie Krabish, Capital

Which of the following accounts is not closed at the end of the accounting period?

• Revenue

• Income Summary

• Maintenance Expense

• John Smith, Capital

Transferring the expense account balances to the Income Summary account is the ____.

• first closing entry

• second closing entry

• third closing entry

• fourth closing entry

The balance of the revenue account is transferred to the ____.

• debit side of the cash in the Bank Account

• credit side of the owner's capital account

• credit side of the Income Summary account

• debit side of the owner's withdrawals account

Closing entries are used to transfer the net income or net loss for the accounting period to the ____.

• Cash in Bank

• Expense Account

• Revenue Account

• Capital Account

At the start of a fiscal period, the merchandise a business has on hand is called the ____.

• beginning inventory

• ending inventory

• adjustment

• physical inventory

A(n) ____ is taken to actually count by hand the items in stock.

• Beginning Inventory

• Ending Inventory

• Physical Inventory

• adjustment

The amount of money actually received by the employee after all deductions are subtracted is called the ____.

• Gross Pay

• Net Pay

• overtime rate

• accumulated earnings