If two amounts are recorded on the same side of the accounting equation, the equation will no longer be in balance.

A business that performs an activity for a fee is a service business.

A proprietorship is also known as a sole proprietorship.

A business has two types of equities.

When an owner withdraws cash from the business, the transaction affects both assets and owner's equity.

When cash is paid to the owner for personal use, assets decrease and owner's equity decreases.

The right side of a balance sheet presents liabilities and assets.

Sandra Stern, Drawing is increased with a credit.

The source document for cash payments is a check.

The Objective Evidence accounting concept requires that there be proof that a transaction did occur.

A journal shows in one place all the changes in a single account.

A chart of accounts is a list of account titles and numbers showing the location of each account in a ledger.

If a bank does not receive payment from the person who signed the check, each endorser of the check is individually liable for payment.

Blank endorsements should be used when sending checks through the mail.

Most banks will accept postdated checks.

Anytime a payment is made from the petty cash fund, a petty cash slip is prepared showing proof of a petty cash payment.

The petty cash slip is the source document for the entry to replenish petty cash.

All general ledger account titles are listed on a trial balance even if some accounts do not have a balance.

Making adjustments to general ledger accounts is an application of the Matching Expenses with Revenue accounting concept.

When the Income Statement Credit column total is greater than the Income Statement Debit column total on a work sheet, the business has a net income.

Information needed to prepare the liabilities section of a balance sheet is obtained from the work sheet's Account Title column and the Balance Sheet Credit column.

The Adequate Disclosure accounting concept is applied when financial statements contain all information necessary to understand a business's financial condition.

Only revenue accounts and expense accounts are used in preparing the income statement.

The net income on an income statement is verified by checking the balance sheet.

An amount written in parentheses on a financial statement indicates an estimate.

A balance sheet reports information about the elements of the accounting equation.

A cash sale is a sale in which a credit card is used for the total amount of the sale at the time of the transaction.

A listing of customer accounts, account balances, and total amount due from all customers is a schedule of accounts receivable.

Medicare is funded by the federal government but not under the social security law.

Employers in many states are required to withhold state, city, or county income tax from employee earnings.

The information used to prepare payroll checks is taken from a payroll register.

Employers must pay to the government the taxes withheld from employee earnings.

The employer social security tax rate is not the same as the employee social security tax rate.

Work sheets for service and merchandising businesses are very different.

The inventory of supplies at the end of a fiscal period is determined by actually counting the amount of supplies on hand.

Data needed to prepare the liabilities section of a balance sheet are obtained from a work sheet's Balance Sheet Debit column.

Indicating a source document is not necessary when journalizing adjusting entries.

Amounts needed for the closing entries are obtained from the Trial Balance columns of a work sheet.

Expense accounts are closed by debiting the expense accounts and crediting Income Summary.

Only one type of accounting system can be used to record, summarize, and report a business's financial information.

The amount on each line of a purchases journal is posted as a credit to the named vendor account in the accounts payable ledger.

When several journals are used, an abbreviation is used in the Post. Ref. column of a ledger to show the journal from which the posting is made.

Purchases on account are recorded in a purchases journal at list price.

A schedule of accounts receivable is prepared before financial statements are prepared to prove the accounts receivable ledger.

A sales invoice is the source document for journalizing a sales on account transaction.

When the allowance account has a previous credit balance, this previous balance is subtracted from the amount of the adjustment for uncollectible accounts expense.

The Realization of Revenue accounting concept explains why failing to collect an account at a later date than the original sale cancels the sale and reduces revenue.

Canceling the balance of a customer account because the customer does not pay is called writing off an account.

When an account is written off, the account balance is transferred to Allowance for Uncollectible Accounts.

A business has total cash of $30,000.00. Then the business pays $1,000.00 on account, buys insurance coverage of $750.00, buys supplies for $1,200.00, and pays $300.00 more on account. The balance of the cash account is now ____.

A business has total assets of $30,000.00. Then the business pays $1,000.00 on account, buys insurance coverage of $750.00, buys supplies for $1,200.00, and pays $300.00 more on account. Total assets are now ____.

When the owner withdraws cash for personal use, ____.

When the owner invests cash in a business, the owner's capital account is ____.

In a transaction by a revenue, Sales is ____.

Debits must equal credits ____.

The normal balance side of any revenue account is ____.

A sale on account ____.

If an error is discovered in a general journal entry, ____.

When the previous balance of an account is zero and a credit amount is posted to the account, the new balance is ____.

When the previous balance of an account is a debit and a debit amount is posted to the account, the new balance is ____.

A business form ordering a bank to pay cash from a bank account is ____.

An endorsement on the back of a check consisting only of a signature is ____.

A lost check with a blank endorsement on it can be cashed by ____.

On a work sheet, the balance of Cash is extended to the ____.

If the Trial Balance columns are not equal and the difference is 1, the error often is ____.

If the Trial Balance columns are not equal and the difference can by divided evenly by 9, the error most likely is ____.

The sections of an income statement are ____.

After the adjusting entry for Prepaid Insurance has been posted, Insurance Expense has an up-to-date balance, which is the ____.

Temporary accounts begin each new fiscal period with a ____.

When the total expenses are greater than the total revenue, ____.

The journal entry to close the expense accounts is ____.

Information needed to journalize a closing entry for the owner's drawing account is obtained from the ____.

The last step in the accounting cycle is ____.

Keeping the reports and financial records of a business separate from the personal records of the partners is an application of the accounting concept ____.

The entry to journalize a purchase of merchandise on account is ____.

An increase in revenue resulting from a sale on account should be recorded ____.

A sale for which cash will be received at a later date is a ____.

A subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account is ____.

An account in a general ledger that summarizes all accounts in a subsidiary ledger is ____.

The special amount column totals of the cash receipts journal are ____.

A general ledger sorts and summarizes all information affecting ____.

The period covered by a salary payment is a ________.

A business form used to record payroll information is ________.

When a semimonthly payroll is paid, the credit to Cash is equal to the ________.

To record the total federal tax payment for employee income tax, social security tax and Medicare tax, the account credited is ________.

To record the payment of federal unemployment tax, the account debited is ________.

Preparing a work sheet at the end of each fiscal period is an application of the accounting concept ________.

The amount of goods on hand for sale to customers is ________.

On a work sheet, Accounts Payable is extended to the ________.

When a work sheet is completed, a net loss will appear in the ________.

Acceptable component percentages should be determined ________.

The two types of journal entries needed to change general ledger account balances at the end of the fiscal period are ________.

To close the revenue account, the revenue account balance for the fiscal period is transferred into ________.

The unit of ownership in a corporation is ________.

Total shares of ownership in a corporation is ____.

Using a copy of the sales invoice as the source document for recording a sale on account transaction is an application of the accounting concept ____.

When the percentage of total sales on account method is used, the estimated uncollectible accounts expense is calculated by ____.

Estimating uncollectible accounts expense at the end of a fiscal period is an application of the accounting concept ____.

The journal entry to reopen an account that has been written off is debit Accounts Receivable and credit ____.