A CPA is a person who has passed a national test and met specified experience and educational standards to become "certified" to practice accounting.

General accounting rules and procedures differ from business to business

GAAP is a set of accepted rules that all accountants use to prepare financial reports

A(n) ____ firm provides accounting services to clients such as individuals or businesses.

summarize information about the financial status of a business

When a business spends more money to operate than it earns from the sale of goods or services

The amount of money earned after the costs of operating a business are paid is ____.

Under the ____ accounting assumption, a business owner must keep the financial records for the business separate from personal records

Following the ____ accounting assumption, the accountant prepares reports as though the business will operate indefinitely.

To survive, a business must ____.

Accounting is often call the "language of business" because ____.

Assets = Liabilities + Owner’s Equity

The owner’s claims to the total assets of the business are called ___

A(n)____ is any property or item of value owned by a business

____are the creditor’s claims to the assets of the business.

___ is income earned from the sale of goods and services.

The costs of goods and services used to operate a business are ___

____is the total amount of money to be received in the future for goods and services sold on credit.

The amount of money owed to the creditors of a business is

___ refers to the dollar amount of the owner’s equity in the business.

When the owner takes cash or other assets from the business for personal use, a(n) ___ occurs

Paid for the monthly rent by check;

at least two accounts will be affected

The owner transferred a new bicycle to the business for deliveries;

at least two accounts will be affected

Purchased office equipment on account;

at least two accounts will be affected

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

Dylan used cash to purchase equipment for use in the business

ABC Plumbing received cash for water leak repair.

XYZ Bakery paid wages to its employees.

Requires a debit and a credit for each transaction

Is always on the increase side of an account.

An “official” list of all the accounts used by a business to record its transactions.

An amount entered on the right side of an account

Debit and credit rules for accounts on one side of the accounting equation are mirror images of those on the other side.

A business groups its accounts in a ledger.

A business transaction can affect two accounts on the same side of the accounting equation and still leave the equation in balance.

The normal balance for asset accounts

The normal balance for the owner’s capital account

The costs of doing business

The balance of a(n) _____ account does not carry forward to the next accounting period.

Money a business earns from the sale of goods or services

The dollar balance of a(n) _____ account is carried forward from one period to the next.

A(n) _____ occurs when the owner takes assets out of the business for personal use.

For the following transaction, which account is debited?

Billed a customer for services provided.

For the following transaction, which account is debited?

Received cash payment for services provided to ABC Customer.

For the following transaction, which account is debited?

Paid by check the $250 electric bill with check #1035

For the following transaction, which account is debited?

Owner wrote a check for $500 for personal use

If a business purchases a calculator on account, which accounts are affected by this transaction?

The business document prepared when cash is received is a(n)

A business paper that verifies that a transaction actually occurred is a(n)

A sequence of business activities completed throughout a fiscal period to keep accounting records in an orderly fashion is the

A chronological record of business transactions is a(n)

A fiscal year is an accounting period that always begins on

January 1 and ends on December 31.

When recording a business transaction, the amount is

always entered first because it is the most important part

of the journal entry.

Most businesses use an accounting period of:

Business transactions are recorded in what order?

Since the debit and credit amounts in a business transaction are the same, the order in which the account titles are recorded in the general journal does not matter.

A net loss decreases the balance in the owner's equity account

A net income for the period is the amount left after the expenses for the period have been subtracted from revenue.

Account names are listed on the work sheet in alphabetical order.

A net loss for the period is entered in the debit column of the Balance Sheet section.

Amounts from the Trial Balance section are extended first to the Income Statement section.

The first two columns of the work sheet are used to enter the

The permanent general ledger accounts are extended to the of the work sheet.

A net loss is entered in the column of the Income Statement section

If the total of the credit column of the Income Statement section is less than the debit column, there is a for the period

The amount of net income for the period is added to the total of the credit column of the Balance Sheet section because it increases the balance in the ____ account.

The of the work sheet answers the questions "who," "what," and "when."

_____ is transferring balances from the Trial Balance section of the work sheet to either the Balance Sheet section or the Income Statement section.

Drawing a line under a column of amounts is known as ____

Indicate whether the account will have a normal debit or credit balance on the Trial Balance section of the work sheet - Cash in Bank

Indicate whether the account will have a normal debit or credit balance on the Trial Balance section of the work sheet - Utilities Expense

Indicate whether the account will have a normal debit or credit balance on the Trial Balance section of the work sheet - Accounts Payable-Stuart

Indicate whether the account will have a normal debit or credit balance on the Trial Balance section of the work sheet - Haight, withdrawals

For the following Trial Balance account, indicate the section of the work sheet to which each account balance will be extended - Cash in Bank

For the following Trial Balance account, indicate the section of the work sheet to which each account balance will be extended - Advertising Expense

For the following Trial Balance account, indicate the section of the work sheet to which each account balance will be extended - J. Jones, Capital

A work sheet is prepared at the end of each fiscal period

Account titles are listed on the work sheet in alphabetical order

A double rule under a column of figures means that the figures are to be added or subtracted

A single rule across both amount columns of the Trial Balances section means that no more entries will be made

The balance sheet reports financial information ____.

The information needed to prepare the income statement comes from the____.

A(n) ____ is the financial statement that reports the final balances in all asset, liability, and owner's equity accounts at the end of the accounting period.

The ____ is completed as a support document for the balance sheet.

____ are debts of the business that must be paid within the next accounting period.

____ indicates what percentage of net sales represents profit

____ are those used up or converted to cash during the normal operating cycle of a business

Also called a profit-and-loss statement

In the heading of the Income Statement, the date should look like which of the following?

In the heading of the Balance Sheet, the date should look like which of the following?

On an Income Statement, the first amount column is used to enter

A net loss occurs when

An increase in owner’s equity could mean (select all that apply)

Information needed to prepare the statement of changes in owner’s equity include (select all that apply)

On the Statement of Changes in Owner’s Equity, the first line should look like which of the following?

Which of the following is not represented on the balance sheet?

A report of the balances in the permanent accounts on a specific date

The ratio that examines the portion of each sales dollar that represents profit

The ratio that refers to the ease with which an asset can be converted to cash

On which financial statement(s) you would most likely find the following (select all that apply): net income

On which financial statement(s) you would most likely find the following (select all that apply): Accounts Payable

On which financial statement(s) you would most likely find the following (select all that apply): Joe Smith, Capital March 1, 2020

On which financial statement(s) you would most likely find the following (select all that apply): Service Revenue

The Trial Balance section of the work sheet provides the information used in preparing the income statement.

is written in the Description column of the general journal to explain the entries that close out the balances in the temporary capital accounts

The only accounts and balances listed on the post-closing trial balance are the of the business.

The ______ are used to record transactions involving revenue, expenses, and withdrawals.

The general ledger account used to accumulate and summarize the revenue and expenses for the period is _______

The trial balance prepared after the closing entries have been posted is the

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

Of the following accounts, a closing entry would be required for

Which of the following is not a true statement?

If a business had a net loss for the period, the journal entry to close out the balance of the Income Summary account into the capital account would be

Which account would appear in the post-closing trial balance?

Temporary accounts start each fiscal period with

The first step in journalizing closing entries is to transfer the balance of the

The source of information for the closing entries is the

Which account is debited in the following situation?

Close out the amount of a net loss for the period

Which account is debited in the following situation?

Close out the balance of the revenue account

Which account is debited in the following situation?

Close out the balances of the expense accounts

Which account is credited in the following situation?

Close out the amount of a net loss for the period

Which account is credited in the following situation?

Close out the balances of the expense accounts

Which of the following accounts does not require a closing entry?

Which of the following is a true statement?

The balance of the revenue account is transferred to the

If a business has a net income for the period, the journal entry to close the balance of the Income Summary account is

Closing entries reduce the capital account balance to zero

The Income Summary account serves as a simple income statement in the ledger

The Income Summary account has a normal credit balance

The entry to transfer net income to capital is a credit to capital and a debit to Income Summary

A credit balance in Income Summary after the revenue, expense, and withdrawals accounts have been closed indicates a net income