Revenues minus expenses equals:

What will usually cause the liability account Accounts Payable to increase?

Mrs Do has personal properties of amounting to P3 million pesos. One half of this was invested in the business called Do Laundry Shop and the other half in another business called Do Convenience Store. Two financial reports were prepared by the bookkeeper, one for each business.

Kala Corp has a division in Japan. Prior to preparing the financial statements for the company and all of its foreign divisions, the Japanese Ministry of Finance announced a possible devaluation of the yen for the incoming year. Since this has not happened Kala Corp. did not include this information in this year's financial statements. Which accounting principle is being violated?

The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period.

Financial statements are prepared with the expectation that a business will remain in operation indefinitely.

On June 25, Galing Repair Shop rendered service shop to a client for P600. The service fee was collected July 4. The bookkeeper recorded the revenue on June 25.

What are the accounting rules used to prepare, present and report financial statements called?

The first step in the recording process is to

After transaction information has been recorded in the journal, it is transferred to the

Transactions are recorded in a journal in chronological order.

The Scott Company decided to sell stock to raise capital. Under what form of business ownership does the company operate?

"To form my business, I used all of my savings and borrowed from the bank, and I'm personally liable for all of the debts."

This business sells stock, creating many small owners.

What is ONE advantage of a Corporation?

An asset account is increased with a _________.

An increase to Utilities Expense is a ____________.

An increase to a revenue account is a ____________.

A financial statement that reports assets, liabilities, and owner's equity on a specific date.

What are the items (accounts) shown in the Income Statement?

The Right-hand side of a "T" account is called _______.

The accounting element that provides benefits now and in future.

The accounting equation is defined as _______.

Sold office machinery for cash

Started a business with $25000 cash

The business owner, Jack invested $9000 into the business bank account. What is the double entry to record this transaction?

Jack withdrew goods worth $500 from the business for his personal use. What is the double entry to record this transaction?

Documents prepared immediately after a transaction takes place is called

The accounts in a business are kept in a book called a ledger

The trial balance is

A transposition error occurs when

When the balance of an account is on the credit side and another credit amount is entered, we

When opening an account in the General Ledger we

Information about specific accounts is recorded in the

Which Financial Statement identifies company's financial position?

Which one is right?

What Three Items are on the Heading of the Balance Sheet?

What is the effect of an expense on the value of owners' equity?

A bank overdraft will appear as a __________balance in Bank Statement.

Whenever money is deposited by the business, a credit entry in its records corresponds to a debit entry in the bank's records.

If the final balance of the bank statement is credit, it indicates that the business owes the bank money.

If the bank charges the business fees, the bank makes a credit entry in the bank statement.

What do we call a cheque that the bank refused to pay the payee because the drawer has insufficient funds in his current account?

Who prepare Bank Reconciliation statement

A Bank Reconciliation statement is prepared to

If the bank statement balance does not agree with the balance of the cash book then we must prepare a

What accounts are included in the post closing trial balance?

An additional journal entry made to correct an incorrect journal entry -

The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current -

A ledger that contains all accounts needed to prepare financial statements -

Writing an account title and number on the heading of an account -

Determining that the amount of cash agrees with the balance of the cash account in the accounting records -

The asset division accounts are numbered in the 200s -

The first digit of account numbers for accounts in the owner's equity ledger division is 4 -

The last two digits in a 3-digit account number indicate the general ledger division of the account -

When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515 -

Expenses are arranged in chronological order in a general ledger -

If an incorrect amount is posted in an account, a line should be drawn through the incorrect amount, the correct amount should be written in above the correction, and the account balance should be recalculated -

If an error in posting is made but not discovered until additional postings have been made to the account, the correct posting should be made on the next available line in the correct account -

If a debit is posted to an asset account, the amount of the debit will be subtracted from the previous account balance to determine the new account balance -

Errors discovered before entries are posted must be corrected with a correcting entry -

If an error requires a correcting entry, a memorandum is prepared as the source document describing the correction to be made.

If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to Cash -

The two steps for opening an account are writing the account title and recording the balance -

There are five steps in posting an amount from the debit or credit column of a general journal -

After a journal has been posted, the Post. Ref. column is completely filled in with account numbers -

The only reason for the Post. Ref. columns of the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted -

The cash account for a service business organized as a sole proprietorship is the first asset account and is numbered 110 -

Because cash transactions occur more frequently than other transactions, there is more chance for making recording errors affecting cash -

The journal entry for a payment on account using electronic funds transfer is exactly the same as when the payment is made by debit card -

The source document for an electronic funds transfer is a check number -

The source document for a debit card purchase is a memorandum -

When the petty cash fund is replenished, the balance of the petty cash account increases -

Not only do banks charge a fee for handling a dishonored check, but they also deduct the amount of the check from the account as well -

The purpose of a petty cash fund is to make small cash payments without writing checks -

An important aspect of cash control is verifying that the information on a bank statement and a checkbook are in agreement -

Most banks do not look at the date the check is written and will withdraw money from the depositor's account anytime -

A check with a blank endorsement can be cashed by anyone who has possession of the check -