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WorksheetsAccounting
Total questions: 43
Worksheet time: 22mins
A Statement of Owner's Equity for a sole proprietorship is called what for a corporation?
They are named the same.
A corporation does not have an equivalent.
Statement of Retained Earnings.
Statement of Capital.
Financial accounting focuses on ...
Recording and summarizing transactions to prepare financial statements for interested users.
Creating internal controls.
Developing product costs
To only serve the decision making needs of internal users.
A ledger account
Initially records an accounting transaction.
Lists all of the debits and credits to make sure they are in balance.
Records the increases and decreases of a specific account (like accounts payable) to calculate its ending balance.
Is a listing of accounts used by a business with corresponding account numbers.
How many basic financial statements are there?
1
2
3
4
5
The cost principle requires transactions to be recorded ...
At the amount actually paid.
At market value.
When cash is exchanged.
At the lower of cost or market.
A book of original entry where transactions are first recorded.
General Journal
General Ledger
Trial Balance
Subsidiary Ledger
A company purchases $1,200 of merchandise on January 1. On January 5, it returned $200 of merchandise. On January 10, it paid the balance taking a 2% early payment discount. How much was paid for the merchandise?
$800
$880
$900
$980
Purchase discounts is an expense account that is increased with a credit, the opposite side of increasing a normal expense account. This kind of account is called a(n) ...
Journal account
Contra account
Inventory account
Financial statement are prepared in what order?
Balance Sheet, Income Statement, Statement of Owner's Equity, Statement of Cash Flows.
Income Statement, Balance sheet, Statement of Owner's Equity, Statement of Cash Flows.
Income Statement, Statement of Owner's Equity, Balance Sheet, Statement of Cash Flows.
Statement of Cash Flows, Balance Sheet, Statement of Owner's Equity, Income Statement.
An account used to record the cost of products sold in a perpetual inventory system is ...
Cost of Goods Sold
Purchases
Merchandise Inventory
Sales
On the worksheet, the purpose of adjusting entries is to ...
Adjust permanent accounts to their actual balances by increasing or decreasing revenues or expenses.
Calculate Net Income.
To split accounts between the income statement and the Balance sheet.
To close temporary accounts.
The basic payroll taxes withheld from an employee's check are
FICA Social Security, FICA Medicare, Federal Income Tax and State Income Tax
Hourly Rate, Gross Pay, Net Pay, and Overtime Pay
Withholding Allowance, FICA, Income Tax, Net Pay
Sales Tax, Employment Tax, Retirement Tax, General Tax.
An employees take-home pay is calculated as ...
Gross Pay minus Withholding Allowances.
Hours worked * Hourly rate
Gross Pay plus Payroll Taxes
Gross Pay minus Payroll Taxes
Which document is used as the source of information to record the payroll for all of the employees.
Journal
Payroll Register
Ledger
Employee earnings report
Where does the W-2 information come from in the payroll system?
W-4
Payroll Register
Employee Earnings Register
941
Which form is used to report and remit FICA Social Security, FICA Medicare, and Federal Income Taxes to the IRS?
940
941
W-4
W-2
Which form is used to report and pay unemployment insurance to the IRS
940
941
W-2
W-4
What payroll taxes is an employer responsible for?
State Income Tax, FUTA, SUTA, FICA Taxes
Federal Income Tax, State Income Tax, FICA Social Security (EE Match), FICA Medicare (EE Match)
FICA Social Security (EE Match), FICA Medicare (EE Match), FUTA and SUTA
FICA Social Security (EE Match), Federal Income Tax, FUTA
What is the difference between Journal(s) and Ledger Account(s)?
Journals calculate account balances, Ledgers record transactions.
Journals list accounts and their ending balances, Ledgers list accounts and their beginning balances
Journals are used to prepare source documents, Ledgers are used to record source documents.
Journals record transactions, Ledgers calculate account balances.
What accounting document is used to calculate individual customer account balances?
Journal
Accounts Receivable Subsidiary Ledger
Accounts Payable Subsidiary Ledger
Accounts Receivable General Ledger
A controlling ledger account
Controls the journal entries
A subsidiary ledger that controls the general ledger account
A general ledger account that controls the subsidiary ledger account
A general ledger account that controls the trial balance.
The total of the accounts receivable subsidiary ledger accounts must
Equal the accounts payable general ledger control account.
Equal the accounts receivable general ledger control account.
Exceed the accounts payable general ledger control account.
Exceed the accounts receivable general ledger control account.
How are the accounts receivable subsidiary ledgers reconciled to the accounts receivable general ledger controlling account?
With the Financial Statements.
They are not reconciled.
The Schedule of Accounts Receivable must equal the accounts receivable account balance on the trial balance.
With a journal.
What is the purpose of posting references?
To state where transaction information is going to (ledger) or coming from (journal)
To balance the accounts
To calculate the balance of a specific account.
To reconcile subsidiary ledgers to the general ledger controlling account.
The journal entry to record the initial start-up of a business is ...
A
B
C
D
What does double entry accounting mean?
Transactions must be recorded on a journal.
Transactions must be posted to a ledger account.
Debits must equal credits in at least two different accounts.
Debits must exceed credits on the trial balance.
Where does the information come from to record transactions in the Journals?
Source Documents.
The Ledger.
The Trial Balance.
The Computer.
Why would a credit in the sales account on a post-closing trial balance indicate an error.
There is no error.
Temporary accounts (Revenues, Expenses, and Owner Withdrawals) are closed to the Capital account at the end of the year, so their balances should be 0 after the closing entry.
The sales account should have a debit balance.
Why does the book cash balance need reconciled to the bank statement monthly?
To give the accountant something to do.
They do not need reconciled.
To update the book records for timing differences (Recorded Transactions vs. Bank Reported Transactions).
To update the bank records.
A check that is recorded in the checkbook but has not been processed by the bank is an
Outstanding Check
Debit Memo
Deposit in Transit
Credit Memo
Bank initiated transactions that are not recorded in the business checkbook yet are
Outstanding checks
Debit and Credit Memos
Deposit in transit
Book errors
Deposits recorded in the business checkbook, but have not been processed by the bank are
Outstanding Checks
Deposits in transit
Credit Memos
Debit Memos
The four basic closing entries are
1. Close Liabilities
2. Close Expenses
3. Close Revenues
4. Close Assets
1. Close Revenues
2. Close Expenses
3. Close Assets
4. Close Withdrawals
1.Close Assets
2. Close Liabilities
3. Close Withdrawals
4. Close Accumulated Depreciation
1. Close income statement debits.
2. Close income statement credits.
3. Close Net Income to Capital
4. Close Withdrawals to Capital.
The journal entry to replenish the petty cash fund would be
List expenses on the petty cash slips as expenses (debit),
Credit cash
List expenses on the petty cash slips as expenses (Credits),
Debit cash
List expenses on the petty cash slips as expenses (debit),
Credit Capital
List expenses on the petty cash slips as expenses (Credits),
Debit Withdrawals
Procedures used by managers to monitor and control business activities to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies are
Bookkeeping
Recordkeeping
Internal Controls
External Controls
A major tenet of internal controls is to
Separate duties (Authorization, Recordkeeping, Asset Custody)
Only have one person reconcile the bank account.
Only have one person write checks.
Only have one person record transactions.
Who writes Generally Accepted Accounting Principles (GAAP) that accountants follow when recording transactions?
Financial Accounting Standards Board (FASB)
Securities and Exchange Commission (SEC)
American Institute of Certified Public Accountants (AICPA)
International Accounting Standards Board
Who issues guidance and regulations on the accounting methods to be used in financial statements that are filed with it by publicly traded companies pursuant to the federal securities laws.
Financial Accounting Standards Board (FASB)
Securities and Exchange Commission (SEC)
American Institute of Certified Public Accountants (AICPA)
Institute of Certified Financial Planners
Which accounting principle dictates that revenues are recorded when earned, not when cash is received?
Cost Principle
Expense Recognition Principle
Revenue Recognition Principle
Materiality Principle
Which accounting principle states that businesses should report their financial results in distinct time periods such as monthly, quarterly, or annually?
Time period principle
Matching principle
Objectivity principle
Relevance principle
Which accounting principle states that accounting transactions will be supported by unbiased evidence?
Cost Principle
Objectivity Principle
Full Disclosure Principle
Matching Principle
Which accounting method creates accounts like accounts receivable and accounts payable because the revenue recognition and expense recognition principles are followed?
Cash
Accrual
Which accounts are used in a perpetual inventory system to record merchandise inventory purchases and sales?
Merchandise Inventory and Cost of Goods Sold
Purchases, and Merchandise Inventor
Purchases, Purchase discounts, Purchase returns and allowances, Transportation-in.
Merchandise inventory and Purchase returns.
