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WorksheetsAccounting 1 Final Review
Total questions: 23
Worksheet time: 12mins
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 the correct item above the canceled error.
do not erase the incorrect item.
all of these.
The second step in the posting procedure is writing the
entry date in the Date column of the account.
journal page number in the Post. Ref. column of the account.
account number in the Post. Ref. column of the account.
entry amount in the Debit or Credit column of the account.
Income Summary is a(n)
asset account
liability account
temporary account
permanent account
An example of a permanent account is
sales
insurance expense
cash
drawing
Assets taken out of a business for the personal use of the owner are called
net income
net loss
investments
withdrawals
When the owner puts cash into the company it's an
expense
investment
drawing
cash
The entry to establish a $100.00 petty cash fund is
debit Petty Cash, $100.00; credit Cash, $100.00.
debit Petty Cash, $100.00; credit Miscellaneous Expense, $100.00.
debit Miscellaneous Expense, $200.00; credit Cash, $200.00.
debit Cash, $200.00; credit Petty Cash, $200.00.
If an amount is recorded on the side of a account (T account) opposite the normal balance side, the account balance is
increased
decreased
unaffected
wrong
On a work sheet, the balance of the owner’s capital account is extended to the
(A) Income Statement Debit column.
Income Statement Credit column.
Balance Sheet Debit column.
Balance Sheet Credit column
Information needed to prepare an income statement’s Expense 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 supplies,
Supplies is decreased
Supplies is credited
Supplies is increased
none of these
When cash is received for sales,
Sales is decreased
Sales is credited
Sales is debited
none of these
The first digit in the account number 110 means that 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 first digit in the account number 210 means that 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.
The journal entry to close Income Summary when there is a net loss 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 Expense
Liability accounts include
Accounts Payable
Accounts Receivable
Sales
Utilities Expense
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 a 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.
either the debit side or credit side.
The normal balance side of any asset account is
the debit side.
the credit side.
either the debit side or credit side.
The normal balance side the capital account is
the debit side.
the credit side.
either the debit side or credit side.
