WorksheetsAcctounting Final Reivew
Total questions: 71
Worksheet time: 36mins
The account Accounts Receivable is an example of a(n) ____.
asset
liability
owner's equity
capital
The purchase of a desk on account will increase Office Furniture and will also increase ____.
Cash in Bank
Accounts Payable
Accounts Receivable
Marie Krabish, Capital
Which of the following accounts is not closed at the end of the accounting period?
Revenue
Income Summary
Maintenance Expense
John Smith, Capital
Transferring the expense account balances to the Income Summary account is the ____.
first closing entry
second closing entry
third closing entry
fourth closing entry
The balance of the revenue account is transferred to the ____.
debit side of the cash in the Bank Account
credit side of the owner's capital account
credit side of the Income Summary account
debit side of the owner's withdrawals account
Closing entries are used to transfer the net income or net loss for the accounting period to the ____.
Cash in Bank
Expense Account
Revenue Account
Capital Account
A financial statement showing the revenue and expense for a fiscal period is the ____.
statement of stockholder's equity
income statement
balance sheet
trial balance
A proof of the equality of debits and credits in a general ledger is a ______.
balance sheet
work sheet
ledger balance
trial balance
A trial balance prepared after the closing entries are posted is a(n) _____.
closing trial balance
opening trial balance
balance sheet trial balance
post-closing trial balance
The account Accounts Receivable is an example of a(n) ____.
asset
liability
owner's equity
capital
Which of the following accounts is not closed at the end of the accounting period?
Revenue
Income Summary
Maintenance Expense
John Smith, Capital
What are assets?
Cash in the business
Anything that a creditor has financial claim to
What remains after liabilities are paid
Any item or property owned by the business
Accounting is referred to as the "language of ___________________."
profit
life
work
business
Amount owed by a business
liability
asset
capital
account
What is the main purpose of accounting?
To let the business owner know if there are enough funds to purchase a much needed company vehicle
To print business documents to take to the bank in hope of obtaining a loan for your business
To organize and analyze all financial activities of the business
To know if your business is making money or losing money
Which term is associated with the "right side" of the T-Account?
The right side of the T-Account is called the positive side
The right side of the T-Account is called the negative side
The right side of the T-Account is called the debit side
The right side of the T-Account is call the credit side
What term is associated with the "left side" of the T-account?
The left side of the T-account is called the positive side
The left side of the T-Account is called the negative side
The left side of the T-Account is called the debit side
The left side of the T-Account is called the credit side
What is an example of an Asset?
Accounts Receivable
Water Bill
Electricity Bill
Accounts Payable
What is an example of a liability?
Accounts Receivable
Company vehicle
Fork lift
Accounts Payable
What is capital?
What a business owner contributes to his business, and has a cash value
The location where a business owner works
A large corporation
The balance of your cash account
Liabilities plus Owner's Equity equals what?
Accounts Receivable
Accounts Payable
Materials
Assets
Accounting entries involve a minimum of how many accounts?
Two
Three
Four
Five
What account is Supplies associated with?
Assets
Liabilities
Owner's Equity
Materials
A business that only has one owner is called what?
Corporation
Partnership
LLC
Sole Proprietorship
What does GAAP stand for?
General Accounting Application Problems
Greater Accounting Applications Project
Geographic Accounting Application Principles
Generally Accepted Accounting Principles
When a business is making money, what is that called?
Loss
Revenue
Profit
Net income
What is Double-Entry Accounting?
Every accounting entry has an opposite, corresponding entry in a different account
Every accounting entry is entered into the software two times
Using 2 accounting software programs on the same computer
Using 2 accounting software programs on two separate computers
Which of the following statement is TRUE?
Petty cash is an amount of cash kept on hand to make very large purchases
Petty cash is an amount of cash kept on hand to make very small purchases
For money to gain interest, you must make frequent withdrawals
For money to gain interest, you must make consistent withdrawals
What does FDIC stand for in the banking industry?
Federally Driven Investment Company
Federal Deposit of Instant Credit
Federal Dangers of Insurance Companies
Federal Deposit Insurance Corporation
Which one of the following is a Liability?
Notes Receivable
Supplies
Office Equipment
Accounts Payable
Which of the following is an Asset?
A fork lift used in the warehouse
Accounts Payable
Office Supply Expense
Gas Expense
The amount of money in an account is called th
transaction balance
account total
total amount
account balance
The net salary earned by an employee after all payroll deductions have been made is called the
gross pay
summarized pay
Total pay
net pay
The principles of right and wrong that guides an individual in making decisions
A director
Character
Ethics
Charisma
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
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 procedure for transferring information from a journal entry to a ledger account is
File maitenance
Posting
Journalizing
None 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
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 check that the bank refuses to pay
Postdated check
Dishonored check
Restrictive endorsement
Electronic endorsement
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
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
The difference between total revenue and total expenses when total expenses is greater
net income
net loss
income statement credit
balance sheet credit
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 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
GAAP is a set of accepted rules that all accountants use to prepare financial reports
True
False
When a business spends more money to operate than it earns from the sale of goods or services
profit
loss
balance
equity
Assets = Liabilities + Owner’s Equity
equities
business transaction
financial capital
accounting equation
___ is income earned from the sale of goods and services.
expenses
profit
capital
revenue
____is the total amount of money to be received in the future for goods and services sold on credit.
accounts payable
accounts receivable
profit
expenses
The amount of money owed to the creditors of a business is
accounts receivable
equities
accounts payable
business transaction
A sequence of business activities completed throughout a fiscal period to keep accounting records in an orderly fashion is the
accounting cycle
general journal
source document
invoice
A net loss decreases the balance in the owner's equity account
True
False
In the heading of the Balance Sheet, the date should look like which of the following?
March 31, 2020
For the Month Ended March 31, 2020
A report of the balances in the permanent accounts on a specific date
balance sheet
income statement
statement of changes in owner's equity
work sheet
On which financial statement(s) you would most likely find the following (select all that apply): Service Revenue
income statement
balance sheet
statement of changes in owner's equity
On which financial statement(s) you would most likely find the following (select all that apply): Accounts Payable
income statement
balance sheet
statement of changes in owner's equity
The ______ are used to record transactions involving revenue, expenses, and withdrawals.
capital accounts
permanent accounts
temporary accounts
liability accounts
The trial balance prepared after the closing entries have been posted is the
income statement
post-closing trial balance
trial balance
Closing entries are used to transfer the net income or net loss for the period to the
revenue account
withdrawals account
capital account
Cash in Bank account
Closing entries reduce the capital account balance to zero
True
False
The Income Summary account has a normal credit balance
True
False
