Accounting Review

Accounts used to accumulate information from one fiscal period to the next are ____ accounts.

• revenue

• permanent

• temporary

• expense

If cash is increased by $2,000.00 when the owner invests cash in the business, then capital is?

• increased by $2000

• decreased by $2000

• increased by $1000

• not changed

The accounting equation is most often stated as?

• Assets=Liabilies

• Cash=Assets

• Assets=Liabilities + Owner's Equity

• Liabilities + Assets = Owner's Equity

After the closing entries are posted, the only accounts with balances are ____ accounts.

• Owner's equity

• Permanent

• Temporary

• Asset

The recording of debit and credit parts of a transaction is ____?

• checking equality

• double-entry accounting

• single-entry accounting

• transaction analysis

An endorsement on the back of a check consisting only of a signature is?

• a blank endorsement

• a special endorsement

• a restrictive endorsement

• an incorrect endorsement

The values of all equities or claims against the assets (liabilities and owner's equity) are on the accounting equations?

• left side

• right side

• debit side

A business form ordering a bank to pay cash from a bank account is a?

• check

• memorandum

• receipt

When a business pays cash on account to another business, the liability account is?

• increased by a debit

• increased by a credit

• decreased by a debit

• decreased by a credit

Buying items and paying for them at a future date is?

• not recommended

• not a common business practice

• illegal

• a common business practice