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WorksheetsAccounting Final Review
Total questions: 60
Worksheet time: 34mins
Accounts used to accumulate information until it is transferred to the owner's capital account
T-accounts
Permanent Accounts
Temporary Accounts
Balance sheet accounts
A business that performs an activity for a fee
Sole proprietorship
Service Business
Wholesale business
Retail Business
Journal entries used to prepare temporary accounts
Adjusting entries
Post-closing entries
Closing entries
Accounting entries
Anything of value that is owned
Creditor
Capital
Liability
Asset
A business owned by one person
Sole proprietorship
Service business
Partnership
Corporation
The planning, recording, analyzing, and interpreting of financial information is called
Accounting
Sale on account
Transaction
Financial statements
An increase in owner's equity resulting from the operation of a business is called
Expense
Sale on Account
Financial Statements
Revenue
The principles of right and wrong that guides an individual in making decisions
A director
Character
Ethics
Charisma
A business activity that changes assets, liabilities, or owners equity is called
A withdrawal
A sale
A purchase on account
A transaction
Assets taken out of a business for the owner's personal use is called
A contra account
An expense
Drawing
Capital
The right side of a T account is the
Credit side
Debit side
Normal Balance side
Equity side
If an amount is recorded on the side of a T account opposite the normal balance side,
The account balance is increased
The account balance is decreased
The account balance is unaffected
The account balance is correct
The normal balance side of an asset account is the
Debit side
Credit side
Decrease side
Right side
When the owner invests cash in a business, the owner's capital account is
increased by a debit
increased by a credit
decreased by a credit
decreased by a debit
When a business pays cash on account, a liability account is
increased by a debit
increased by a credit
decreased by a debit
decreased by a credit
Increases in a revenue account are shown on a T account's
Debit side
Credit side
Left side
None of these
The normal balance of any expense account is the
Debit side
Credit side
Right side
None of these
A business form ordering a bank to pay cash from a bank account is called
source document
invoice
receipt
check
A business paper from which information is obtained for a journal entry
a source document
expense
asset
transaction
The first digit in the account number '120' means that the account is in the?
Expense division
Liability division
Asset Division
Revenue division
When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the account personnel are:
Posting
Doing file matinence
Journalizing
None of these
The procedure for transferring information from a journal entry to a ledger account is
File maitenance
Posting
Journalizing
None of these
the first step in the posting procedure
Journal page number in the post ref
Entry amount in the debit or credit
Entry date in the date column of the account
None of these
If posting is interrupted, the accounting personnel knows to resume posting
On the line with a blank post ref column in the journal
the next day
at the beginning of a new journal page
all of these
When the previous balance of an account is zero, and a credit amount is posted to the account, the new balance is a:
Dollar amount
debit
credit
none of these
Determining that the amount of cash agrees with the accounting records is
Posting
journalizing
Proving cash
None of these
A bank card that, when making purchases, automatically deducts the amount of the purchase from the checking account of the cardholder
Debit card
Credit card
Prepaid Card
A check that the bank refuses to pay
Postdated check
Dishonored check
Restrictive endorsement
Electronic endorsement
An endorsement restricting further transer of a checks ownership
Blank endorsement
Special endorsement
Restrictive endorsement
Electronic endorsement
An endorsement consisting only of the endorser's signature
Blank endorsement
Restrictive Endorsement
Special Endorsement
Electronic Endorsement
A report of deposits, withdrawals, and bank balances sent to a depositer by a bank
Bank statement
Financial statement
Journal
Ledger
A lost check with a blank endorsement on it can be cashed by:
Only the owner
Only the person who the check is written for
No one
Anyone
If any kind of error occurs when preparing a check,
a new check should be prepared
VOID should be written on the check
VOID should be written on the stub
All of these
None of these; erase and correct your mistake
Each time cash or checks are placed in a bank account, the customer prepares a
Signature card
Check
Deposit slip
Nothing
The entry to establish a $200 petty cash fund is..
Debit cash, credit petty cash
Debit petty cash, credit cash
Debit misc. expense, credit petty cash
Debit petty cash, credit misc. expense
A petty cash fund is always replenished
daily
weekly
monthly
yearly
Following the same accounting procedure in the same way in each accounting period is an application of the account concept
Matching Expenses with Revenue
Accounting Period Cycle
Going Concern
Consistent Reporting
On the trial balance columns of a worksheet,
all general ledger accounts are listed
only general ledger account titles are listed
only accounts with debit balances are listed
only accounts with credit balances are listed
On a worksheet, the balance of the owner's capital account is extended to the
balance sheet debit column
balance sheet credit column
income statement debit column
income statement credit column
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements
Balance sheet
Work sheet
Cash flow sheet
Income statement
The difference between total revenue and total expenses when total expenses is greater
net income
net loss
income statement credit
balance sheet credit
The date on a monthly income statement prepared on July 31 is written as..
For the month ended on July 31, 20--
July 31, 20--
20--, July 31
none of these are right
Information needed to prepare an income statement's revenue section is obtained from a worksheets account title column and..
Income statement debit
Income statement credit
Balance sheet debit
Balance sheet credit
The amount of net income calculated on an income statement is correct if..
It is the same as the net income shown on a worksheet
debit = credits
none of these
it is the same as shown on the balance sheet
Information needed to prepare a balance sheet liabilities section is obtained from a work sheet's account title column and
income statement debit column
balance sheet credit column
income statement credit column
balance sheet debit column
Adjustments are analyzed and planned
in the ledgers
on the financial statements
on a worksheet
none of these
After the adjusting entry for Supplies has been posted, supplies expense has an up-to-date balance, which is the
same as beginning balance for supplies
value of supplies used during the fiscal period
value of the supplies bought during the fiscal period
same as the ending balance for supplies
The journal entry to adjust prepaid insurance is
debit prepaid insurance; credit insurance expense
debit insurance expense; credit prepaid insurance
debit income summary; credit prepaid insurance
debit insurance expense; credit income summary
Temporary accounts begin each new fiscal period with a..
Debit balance
Credit Balance
Zero balance
balance from previous fiscal period
the journal entry to close the expense accounts is..
debit income summary; credit owners capital
debit income summary for the total expenses; credit each expense account
debit each expense account; credit income summary
none of these
Accounts used to accumulate information from one fiscal period to the next..
Revenue accounts
Temporary Accounts
Permanent accounts
Expense accounts
The journal entry to close sales is..
Debit income summary; credit sales
debit sales; credit income summary
Debit income summary; credit owners capital
none of these
the source document for a cash purchase is
a memorandum
an invoice
a receipt
a check
Supplies bought for use in a business are recorded in the
supplies expense account
purchases account
supplies account
cash account
An amount owed by a business
Asset
Liability
Owner's equity
Purchases
A decrease in owners equity resulting from operation of business
Expense
Asset
Liability
Revenue
The petty cash fund is
An asset with a normal credit balance
An asset with a normal debit balance
A liability with a normal credit balance
A liability with a normal debit balance
A financial statement that reports assets, liabilities, and owner's equity on a specific date
Cash flow statement
Worksheet
Balance sheet
Income statement
The formula for calculating net income component percentage is..
Net income divided by total sales equals net income percentage
total sales divided by total expenses equals net income percentage
total sales minus total expenses divided by net income equals net income percentage
none of these
Which of the following accounts is NOT an asset?
Prepaid insurance
Accounts Receivable
Cash
Accounts Payable
