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Questions 1-175

An entry on the right side of an account. Credit
Will increase an asset account. Debit
Will decrease the balance in Accounts Payable. Debit
A general journal entry will have this listed first. Debit
The normal balance for Rent Expense. Debit
To decrease Accounts Receivable. Credit
The expected balance in Prepaid Insurance. Debit
A negative Cash balance will have this account balance. Credit
Will increase the account Inventory. Debit
The expected balance in the account Petty Cash. Debit
The usual entry for an expense. Debit
Will increase a liability account. Credit
An entry on the left side of an account. Debit
A revenue account's normal balance. Credit
The expected balance in Allowance for Doubtful Accounts. Credit
The balance you would expect in Unearned Revenues. Credit
The entry to Account Payable for a purchase on credit. Credit
A general journal entry will have this account indented. Credit
The expected balance in Purchase Discounts Credit
The expected balance for Land Debit
The expected balance in Sales Discounts. Debit
The expected balance in Accumulated Depreciation. Credit
The entry to J. Smith, Drawing when a withdrawal occurs. Debit
The expected balance in the account Supplies. Debit
A profitable corporation's balance in retained earnings. Credit
The entry to increased J. Smith, Capital. Credit
The expected balance in Depreciation Expense. Debit
The entry to Machinery and Equipment when a machine is scrapped. Credit
The entry to Accumulated Depreciation to remove an amount associated with a machine that was scrapped. Debit
The entry to reduce the balance in Supplies. Credit
The entry to Accounts Receivable when an account is collected. Credit
The entry to close the account J. Smith, Drawing at the end of the accounting year. Credit
The entry to close the account Sales at the end of the year. Debit
The entry to increase the balance in Prepaid Insurance Debit
The entry to Cash when recording a bank service charge. Credit
The entry to Payroll With-holdings Payable when remitting payroll taxes. Debit
The entry to increase Sales Taxes Payable Credit
The usual entry to Sales or Service Revenues Credit
The entry to Cash Short and Over when the replenishment of Petty Cash indicates a shortage. Debit
The Cash account is credited when the petty cash fund is replenished. True
Accumulated Depreciation is a contra asset account. True
Payroll withholdings are current liabilities. True
Recording an entry in the general journal is referred to as posting. False
Both assets and expenses will normally have debit balances. True
Both liabilities and revenues will normally have credit balances. True
Liabilities are claims against the company's assets. True
Under the accrual-basis of accounting, the amount collected from accounts receivable should be reported. False
Recording 1000 of Rent Expense as Property Tax Expense will cause the trial balance to be out of balance. False
A withdrawal by a sole proprietor is reported on the income statement. False
The trial balance will be out of balance if a journal entry is recorded twice. False
Sales taxes collected bu not yet remitted should be reported as a current liability. True
An error in counting the ending inventor will cause the net income to be incorrect. True
An hourly employee's take-home pay is referred to as gross wages. False
If a company has a loan payable, it is reasonable to expect a debit balance in the account Interest Expense. True
Unexpired insurance premiums should be deferred to an asset account until they expire. True
When replenishing the petty cash fund, differences are recorded in the income statement account Cash Short and Over. True
Retained Earnings is part of stockholder's equity. True
The periodic inventory system means that the balance in the account Inventory will change after each purchase of goods. False
The end of year balances in asset accounts will become the following year's beginning balances. True
The end of year balances in revenue accounts will become the following year's beginning balances. False
Advertising Expense is part of the cost of goods sold. False
Dividends are distributions of a corporation's profits to it stockholders. True
The dollar amount in the Inventory account is the sales value of the items on hand. False
Under the periodic inventory system, the cost of merchandise purchased is debit to a purchases account instead of the inventory account. True
When the amount of an asset's accumulated depreciation is equal to the cost of the asset, no depreciation expense will be recorded in the next accounting year even though the asset is in service. True
If equipment used in the business is sold for more than its book value, a gain is recorded. True
The cost of the land used for the site of a new warehouse should be depreciated. False
When an asset has the same amount of depreciated expense each year, it is being depreciated under the straight-line method. True
A cash withdrawal by a sole proprietor appears as a debit in the drawing account. True
Checks received from customers, but not yet deposited should be considered as part of the company's cash. True
Land, buildings,and equipment are often referred to as fixed assets. True
The annual wage statement given to employees in January that shows the amounts earned and withheld in the previous year is the form W-4 False
A debit to expense has the effect of reducing owner's (stockholders') equity. True
Under the accrual- basis of accounting, receipts are revenues. False
Each year's depreciation expense for financial accounting should agree with the depreciation expense used for income tax purposes. False
Under the accrual-basis of accounting, the collection of accounts receivable will increase owner's equity. False
The balance sheet is also known as the statement of financial position. True
The book value of a company's equipment is generally the same as the equipment's fair market value. False
A listing of account numbers and titles without account balances is the ______ of accounts. Charts
The depreciation entry will be recorded in the _______ journal. General
A _________ is referred to as the book of original entry. journal
The accounts with activity and balances are contained in the general _______. Ledger
A control account in the general ledger is supported by details in ________ ledger Subsidiary
A small amount of currency and coins on hand that is used to pay small amounts is a ________ cash fund. Petty
Making certain that the amounts in a company's general ledger's Cash account agrees with the amounts on the company's bank statement is known as a bank _________. Reconciliation
Checks written but not yet clearing the bank are referred to as ________checks. outstanding
_______ is the process of recording amounts from the general journal into the general ledger. Posting
If an amount is recorded with two of its digits transposed, the amount of the difference is evenly divisible by the digit________. Nine
Recognizing revenues when the money is received is the ________ -basis of accounting. Cash
The accounting equation is: Assets = Liabilities + Owner's (Stockholders)_________. Equity
In order to encourage customers to remit amounts owed, a company will send _______ showing the amounts owed. Statements
A report that shows the accounts receivable sorted by the length of time invoices have been open is an _______ of accounts receivable. Aging
The financial statement that reports revenues and expenses is the ______ statement income
The financial statement that reports assets and liabilities is the _______ sheet. Balance
Cash and other assets that will turn to cash within one year are ______ assets. Current
When M. Ott withdraws cash form her sole proprietorship, the amount is debited to the account M. Ott,________. Drawing
Generally, the amounts reported int the accounts Land, Buildings, and Equipment are the historical ________ and not the current market values. costs
When depreciation is recorded, the account Depreciation _______ is debited Expense
When depreciation is recorded, the account _______ Depreciation is credited. Accumulated
When a credit sale is recorded, Accounts ________ is debited. receivable
When a purchase is made on credit, Accounts _______ is credited. Payable
A _______ discount is usually a percentage that is deducted from a catalog's list price. trade
The unexpired cost of insurance premiums should be reported in the account ________ Insurance. Prepaid
Prepaid expenses should appear on the balance sheet as ________. assets
Money received in advance of being earned should be recorded in the asset account Cash and in the ________ account Unearned Revenues. liability
The net of a plant asset's cost minus its accumulated depreciation is the asset's _______ value or carrying value. Book
Entries made at the end of the accounting year so that all of the income statement accounts begin the following year with balances of zero are _______ entries. closing
Entries to accrue expenses that have occurred during an accounting period but were not recorded through the normal paperwork are part of ________ entries. adjusting
The financial statement that explains how the cash and cash equivalents have changed is the statement of ________. cash flows
Another word for lenders or supplier who have extended credit to a company is ________. creditors
A cost that has been uses up, expired, or matched with revenues is an ________. expense
Amounts spent to acquire property, plant, and equipment are referred to as ________ expenditures capital
Sales minus the cost of good sold is ______ profit. gross
Sales minus the total of sales returns, sales allowances, and sales discounts is ________ sales. net
The amount of supplies used during the current accounting period should be reported in the account Supplies _________. Expense.
If the amount of supplies on hand is significant, it should be reported as an ______. Asset
An internal report that lists all general ledger accounts and their balances in order to verify that the total of the debit balances equals the total of the credit balances is a _________. trial balance
______ and owner's equity can be thought of as claims against a company's assets. Liabilities
The balance sheet reports amounts as of a _____ in time. point
The income statement reports amounts for a ______ of time. period
Prior to approving a vendor's invoice for payment, the invoice, receiving ticket, and ________ order should be compared. purchase
The account that is credited when replenishing the petty cash fund is the _______ account. cash
The accounting year of July 1 through June 30 is referred to as a _______ year (as opposed to a calender year). fiscal
A ______ lender has a lien or mortgage on a specific asset or assets. Secured
FICA is the combination of Social Security tax and ________ tax. Medicare
EFT is the acronym for electronic _______ transfer. funds
Current assets minus current liabilities is ________ capital. working
An asset account Account Receivable
An account that is not a asset Account Payable
A temporary account Interest Revenue
A permanent account Temporary Investments
A balance sheet account Interest Receivable
A liability account Unearned Revenues
An account that does not close at the end of the accounting year. Cash
An account that is closed at the end of an accounting year. Miscellaneous Expense
When the terms of a sale are FOB shipping point, the freight cost is the responsibility of the buyer
When the terms of sale are FOB destination, the freight cost is the responsibility of the seller
Which amount should be added to the balance per bank in a bank reconciliation? deposits in transit
Which amount should be deducted from the balance per bank when preparing a bank reconciliation? outstanding checks
Which amount should be added to the balance per books when preparing a bank reconciliation? interest received on the bank account
Which one of the following payroll taxes is withheld from an employee's pay but is not matched by the employer? federal income tax
Which one of the following taxes applies to every dollar of every employee's wages or salary ? Medicare tax
Which financial statement does not cover a period of time ? balance sheet
Which one of the following is a non operating expense. interest Expense
When a long-term asset is sold for more than its carrying amount, which of the following is the best way to report the transaction? Gain on Sale of Asset
Sales minus the cost of goods sold is gross profit
Commissions earned by a company's sales staff is part of the company's Selling expenses
Freight- in is part of cost of goods sold
Items recorded in the general journal are in order by date
A manufacturer's factory overhead is a product cost
Entries at the of and accounting period to accrue revenues and expenses or to defer revenues and expenses are adjusting entries
The chart of accounts usually begins with this group of accounts assets
Reporting expenses with the corresponding revenues is associated with which of the following accounting principles? matching
Which of the following is not included in a manufacturer's inventory? office supplies
Losses due to accounts receivable not being collected are reported as bad debts expense
An invoice for An invoice for $500 has credit terms of 2/10 , n/30. If the invoice is paid within the discount period, the amount to be remitted is $_____. 490 500-[2% x 500]
An invoice has credit terms of 1/10, n/30. The invoice is for $1000 but $100 of merchandise was returned within two days. The amount to be remitted with the discount period is $______. 891 900 -[1%x 900]
Created by: ida39
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