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WorksheetsAccounting Part 1 Final Exam Review
Total questions: 40
Worksheet time: 20mins
A person or business to whom a liability is owed
creditor
chart of accounts
debitor
income
A transaction recorded in a journal is not considered a permanent record.
True
False
A balance sheet reports financial information for a period of time.
True
False
The source document for an electronic funds transfer is a memorandum
True
False
The drawing account is a permanent account
True
False
The transaction for the sale of goods or services results in a decrease in owner's equity.
True
False
The formula for calculating net income is total revenue minus total expenses
true
false
If the previous account balance and the current entry posted are both credits, the new account balance is a credit
true
false
Adjusting entries must be posted to the general ledger accounts.
true
false
Temporary accounts are used to accumulate information until it is transferred to the owner's capital account.
true
false
If an error is recorded in a journal entry,
cancel the error by drawing a neat line through the error
correct the entry by writing in the correct item above the canceled error
do not erase the incorrect item
all of these
The first step in the posting procedure is writing
the entry date in the Date Column
journal page number in the Post. Ref. Column
account number in the Post. Ref. Column
entry amount in the Debit or Credit column of the account.
Income summary is a(n)
asset account
liability account
temporary account
permanent account
Assets taken our of the business for personal use of the owner are called
net income
net loss
investments
withdrawals
The entry to establish a $200.00 petty cash fund is
debit Petty Cash, credit Cash
debit Petty Cash, credit Miscellaneous Expense
debit Miscellaneous Expense, credit cash
debit Cash, credit Petty Cash
If an amount is recorded on the side of the T account opposite the normal balance side, the account balance is
increased
decreased
unaffected
correct
On a work sheet, the balance of the owner's drawing account is extended to the
income statement debit column
income statement credit column
balance sheet debit column
balance sheet credit column
Information needed to prepare an income statement's Revenue section is obtained from a work sheet's Account Title column and
Income statement debit column
Income statement credit column
Balance Sheet Debit column
Balance Sheet Credit column
When cash is paid for insurance
prepaid insurance is decreased
prepaid insurance is credited
Prepaid insurance is increased
none of these
The first digit in the account number 410 means the account is in the
Assets division of the general ledger
Liabilities division of the general ledger
revenue division of the general ledger
expenses division of the general ledger
The journal entry to close Income Summary when there is a net income is
debit sales; credit Income summary
debit owner's capital; credit income summary
debit income summary; credit sales
debit income summary; credit owner's capital
Asset accounts include Cash, Prepaid Insurance, and
accounts payable
accounts receivable
sales
utilities expenses
The formula for calculating the net income ratio is
net income divided by total sales
total sales divided by total expenses
total sales minus total expenses divided by net income
none of these
Reporting changes in financial information for specific period of time in the form of financial statements is an application of the accounting concept
matching expenses with revenue
accounting period cycle
consistent reporting
going concern
The normal balance side of any expense account is
the debit side
the credit side
the right side
either the debit side or the credit side
