The amount remaining after the value of all
liabilities is subtracted from the value of all
assets is ____.
A.
B.
C.
D.
the fair market value of the business
owner's equity
a financial report
a transaction
A business form ordering a bank to pay
cash from a bank account is a ____.
A.
B.
C.
D.
signature card
Check
deposit slip
none of the above
When services are sold on account for $500.00,
____.
A. Sales is decreased with a debit and Accounts
Receivable is increased with a credit
B. Sales is increased with a debit and Accounts
Receivable is increased with a credit
C. Sales is increased with a credit and Accounts
Receivable is increased with a debit
D. Sales is increased with a debit and Accounts
Receivable is increased with a debit
Prepaid Insurance is ____.
A. an asset account
B. an owner's equity account
C. a liability account
D. none of the above
A business has the following expense
accounts: 510, Advertising Expense; 520,
Miscellaneous Expense; 530, Repair
Expense. A new account titled Utilities
Expense is added. The account number for
this new account is ____.
A.
B.
515
525
C.
D.
540
550
When a business buys an asset on one
date and agrees to pay on a later date, the
transaction is ____.
A.
B.
C.
D.
delayed
increased
on account
none of the above
The account debited when cash is paid for
supplies is ____.
A.
B.
C.
D.
Supplies
Supplies Expense
Cash
none of the above
Transactions are recorded in a
journal in order by ____.
A.
B.
C.
D.
date
source document
account name
none of the above
The account debited when cash is paid for
supplies is ____.
A.
B.
C.
D.
Supplies
Supplies Expense
Cash
none of the above
When services are sold on account, ____.
A. Accounts Receivable is debited and Sales
is credited
B. Sales is debited and Accounts Receivable
is credited
C. Accounts Payable is debited and Sales is
credited
D. Sales is debited and Accounts Payable is
credited
The journal entry to close Sales is ____.
A.
B.
C.
D.
debit Income Summary; credit Sales
debit Sales; credit Income Summary
debit Income Summary; credit owner's capital
none of the above
The entry to establish a $200.00 petty cash
fund is ____.
A. debit Cash, $200.00; credit Petty Cash,
$200.00
B. debit Miscellaneous Expense, $200.00;
credit Cash, $200.00
C. debit Petty Cash, $200.00; credit Cash,
$200.00
D. debit Petty Cash, $200.00; credit
Miscellaneous Expense, $200.00
The date on a monthly income statement
prepared on July 31 is written as ____.
A.
B.
C.
D.
For Month Ended July 31, 20—
20--, July 31
July 31, 20-none of the above
Temporary accounts begin each new fiscal
period with a ____.
A.
B.
C.
D.
debit balance
zero balance
credit balance
balance equal to the net income
A columnar form used to summarize general
ledger information needed to prepare
financial statements is ____.
A.
B.
C.
D.
a balance sheet
a work sheet
a trial balance
an income statement
The journal entry to adjust Supplies is ____.
A. debit Supplies; credit Supplies Expense
B. debit Supplies Expense; credit Supplies
C. debit Income Summary; credit Supplies
D. debit Supplies Expense; credit Income
Summary
When total revenue is greater than total
expenses, the difference is a ____.
A.net income
B.debit balance
C.net loss
D.none of the above
Accounts used to accumulate information from
one fiscal period to the next are ____
accounts.
A.Revenue
B.Temporary
C.Permanent
D.expense
Information needed to prepare a balance
sheet liabilities section is obtained from a
work sheet's Account Title column and ____.
A.Income Statement Debit column
B.Balance Sheet Debit column
C.Income Statement Credit column
D.Balance Sheet Credit column
Information needed to prepare an income
statement's expense section is obtained
from a work sheet's Account Title column
and ____.
A.
B.
C.
D.
Income Statement Debit column
Balance Sheet Debit column
Income Statement Credit column
Balance Sheet Credit column
After the closing entries are posted, the only
accounts with balances are ____ accounts.
A.
B.
C.
D.
owner's equity
Temporary
Permanent
asset
The journal entry for a cash and credit card sales
transaction is ____.
A. debit Cash; credit Sales; credit Sales Tax
Payable
B. debit Cash; debit Sales Tax Payable; credit
Sales
C. debit Sales; credit Cash; credit Sales Tax
Payable
D. debit Sales Tax Payable; debit Cash; credit
Sales
If a customer buys $300.00 worth of
merchandise and the sales tax is 8%, the total bill
the customer must pay is ____.
A.$300.00
B.$324.00
C.$304.00
D.$342.00
Supplies bought for use in a business are
recorded in the ____.
A.supplies expense account
B.supplies account
C.purchases account
D.cash account
A listing of customer accounts, account
balances, and total amount due from all
customers is a ____.
A.
B.
C.
D.
schedule of accounts payable
subsidiary ledger
schedule of accounts receivable
controlling list
A form prepared by the vendor showing the
amount deducted for returns and allowances is
called a ____.
A.
B.
C.
D.
credit memorandum
purchase invoice
sales invoice
cash receipt
The entry to journalize buying supplies for
cash is ____.
A. debit Supplies; credit Cash
B. debit Accounts Payable; credit Supplies
C. debit Purchases; credit Cash
D. debit Purchases; credit Supplies
A special journal used to record only cash
receipt transactions is ____.
A.a cash journal
B.a cash receipts journal
C.a purchases journal
D.none of the above
When merchandise is sold on account and
sales tax is also collected, ____.
A. Accounts Receivable is credited for the
total sale and sales tax
B. the accounts receivable account balance
is increased
C. Sales is debited for the price of the goods
D. the sales tax is not reported
The ledger that contains all accounts needed
to prepare financial statements is the ____.
A.
B.
C.
D.
accounts payable ledger
general ledger
accounts receivable ledger
subsidiary ledger
Medicare is for people who ____.
A.
B.
C.
D.
have a disability
have reached retirement age
are in the hospital
are under 50 years of age
Each employee name is listed in a
payroll register along with ____.
A.
B.
C.
D.
employee number
withholding allowances
marital status
all of the above
The total of the schedule of accounts receivable
should equal ____.
A. the accounts receivable account balance in
the general ledger
B. the cash account
C. the debit and credit proof
D. none of the above
Employers must pay payroll taxes for ____.
A. social security and Medicare and sales
taxes
B. social security and Medicare, federal
unemployment, and state unemployment taxes
C. federal income and social security and
Medicare taxes
D. none of the above
Social security tax is calculated by ____.
A.
B.
C.
D.
multiplying total earnings by the tax rate
multiplying net earnings by the tax rate
using a tax table
none of the above
Accurate and detailed payroll records ____.
A. do not have to be retained
B. must be maintained
C. are the responsibility of the employee, not
the business
D. none of the above
Individual payroll checks are usually written on
____.
A.
B.
C.
D.
a company's regular checking account
a special payroll checking account
a special purposes account
an employee earnings account
Employers are required to furnish each
employee an annual statement of earnings and
withholdings before ____.
A.
B.
C.
D.
December 31 of the current year
January 1 of the following year
January 15 of the following year
January 31 of the following year
Until payment is made, payroll taxes for an
employer are ____.
A.
B.
C.
D.
an asset
Capital
a liability
an expense
The period covered by a salary payment is a ____.
A.
B.
C.
D.
bimonthly base
pay period
pay schedule
payroll