Cooley
2012-13
An equation showing the relationship
among assets, liabilities, and owner’s
equity.
An increase in owner’s equity resulting
from the operation of a business
A business paper from which information is
obtained for a journal entry
Accounts used to accumulate information
until it is transferred to the owner’s
capital account
A business that performs an activity for a
fee.
Journal entries recorded to update general
ledger accounts at the end of the fiscal
period
A columnar accounting form used to
summarize the general ledger information
needed to prepare financial statements
A list of accounts used by a business
Journal entries used to prepare temporary
accounts for a new fiscal period.
A financial statement that reports assets,
liabilities, and owner’s equity on a specific
date.
Transferring information from a journal
entry to a ledger account.
An accounting device used to analyze
transactions.
A proof of the equality of debits and
credits in a general ledger.
A business owned by one person
A trial balance prepared after the closing
entries are posted
Making adjustments to general ledger
accounts is an application of the Matching
Expenses with Revenue accounting
concept.
The posting reference should always be
recorded in the journal’s Post. Ref. column
before amounts are recorded in the ledger
The current capital to be reported on a
balance sheet is calculated as the capital
account balance plus net income equals
current capital.
Blank endorsements should be used when
sending checks through the mail.
Temporary accounts must start each fiscal
period with a zero balance.
The balances of the expense accounts must
be reduced to zero to prepare the accounts
for the next fiscal period.
Net income on a work sheet is calculated
by subtracting the Income Statement
Credit column total from the Income
Statement Debit column total.
The formula for calculating the total
expenses component percentage is total
expenses divided by total sales equals total
expenses component percentage
The value of the prepaid insurance
coverage used during a fiscal period is an
expense.
When the petty cash fund is replenished,
the balance of the petty cash account
increases.
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 current capital to be reported on a
balance sheet is calculated as the capital
account balance plus net income equals
current capital.
The account number is placed in the Post.
Ref. column of the journal as the last step
in the posting procedure.
A double line ruled across both Trial
Balance columns shows that the two
columns are to be totaled.
The balance of the supplies account plus
the value of the supplies on hand equals
the up-to-date balance of the supplies
account.
A petty cash fund is always
replenished
daily
weekly
At the end of the month
None of these
An account number in the journal’s
Post.Ref. column shows
The account to which an amount is posted.
The date of the entry
The work on that journal page is completed
None of these
A net loss is entered in the work
sheet’s
Income Statement Credit and Balance Sheet Debit columns
Income Statement Debit and Balance Sheet Credit columns
Balance Sheet Debit and Trial Balance Credit columns
Income Statement Debit and Trial Balance Credit columns
Preparing financial statements at the
end of each monthly fiscal period is an
application of the accounting concept
Going Concern
Adequate Disclosure
Objective Evidence
Accounting Period Cycle
On a work sheet, the balance of the
Sales account is extended to
Income Statement Debit column
Balance Sheet Debit column
Income Statement Credit column
Balance Sheet Credit column
The journal entry to adjust Supplies
is
Debit Supplies; credit Supplies Expense
Debit Supplies Expense; credit Supplies
Debit Income Summary; credit Supplies
Debit Supplies Expense; credit Income Summary
Posting references in a journal are
Always placed in an account’s Post. Ref. column
Not necessary
The first item recorded when posting
None of these
The bank statement shows an account balance of
$5,500.00. There are outstanding checks totaling
$600.00 and an outstanding deposit of $400.00. The
adjusted bank balance should be
$5,300.00
$5,700.00
$5,285.00
None of these
An endorsement on the back of a check
indicating that the check is to be
accepted for deposit only is a
Special Endorsement
Blank Endorsement
Restrictive Endorsement
Deposit Endorsement
The formula for calculating the net
income component percentage is
Total sales divided by total expenses equals net income component percentage
Net income divided by total sales equals net income component percentage
Total sales minus total expenses divided by net income equals total net income
percentage
None of these
After the adjusting entry for Supplies
has been posted, Supplies Expense has
an up-to-date balance that is the
Value of supplies bought during the fiscal period
Same as the beginning balance for Supplies
Same as the ending balance for Supplies
Value of supplies used during the fiscal period
The journal entry to close the
expense accounts is
Debit each expense account; credit Income Summary
Debit Income Summary; credit owner’s capital
Debit Income Summary for the total expense; credit each expense account
None of these
The last step in the posting
procedure is writing
The journal page number in the Post.Ref. column of the account
The entry date in the Date column of the account
The entry amount in the debit or Credit column of the account
None of these
Following the same accounting procedures in the
same way in each accounting period is an application
of the account concept
Accounting Period Cycle
Matching Expenses with Revenue
Consistent Reporting
Going Concern
A lost check with a blank
endorsement on it can be cashed by
Anyone who has the check
Only the person whose name follows the words “Pay to the order of.”
Only the person who endorsed the check.
No one
After the adjusting entry for Prepaid
Insurance has been posted, Insurance Expense
has an up-to-date balance that is the
Same as the ending balance for Prepaid Insurance
Same as the beginning balance for Prepaid Insurance
Value of insurance premiums used during the fiscal period
Value of insurance premiums bought during the fiscal period
The journal entry to close Sales is
Debit Income Summary; Credit Sales
Debit Income Summary; credit Owner’s Capital
Debit Sales; credit Income Summary
None of these
The entry to establish a $200.00
petty cash fund is
Debit petty Cash, $200.00; credit Cash, $200.00
Debit Cash, $200.00; credit Petty Cash, $200.00
Debit Miscellaneous Expense, $200.00; credit Cash, $200.00
Debit Petty Cash, $200.00; credit Miscellaneous Expense $200.00