Planning, recording, analyzing, and interpreting financial information
What is Accounting
100
The accounting equation
What is assets = liabilities + owner's equity
100
How is cash classified? List increase/decrease and normal balance side.
What is asset. Debit - Increase/Normal balance, Credit - Decrease
100
Recording transactions in a journal is called posting
What is False, journalizing
100
What accounts are listed on the trial balance of a worksheet?
What is all of the accounts in the general ledger
200
A business owned by one person
What is sole proprietorship
200
The amount remaining after the value of liabilities is subtracted from the value of assets
What is owner's equity
200
Accts. Payable
What is Liability, Increase/Normal balance - Credit, Decrease - Debit
200
On a chart of accounts, all asset and expense accounts are in the same division
What is False, assets - 100s, expenses - 500s
200
An account number in the journal's post ref. column shows ___________.
What is the account to which the amount has been posted
300
Anything of value that is owned
What is assets
300
A business activity that changes assets, liabilities, or owner's equity
What is a transaction
300
Expenses
What is expense, Increase/Normal balance - debit, Decrease - credit
300
A receipt is a source document for cash received from transactions other than sales
What is true
300
Preparing financial statements at the end of each fiscal period is an application of what accounting principle?
What is Accounting Period Cycle
400
A computerized cash payment system that transfers funds without the use of checks, currency, or other paper documents
What is electronic funds transfer (EFT)
400
True/False (if False, state why): There must be an increase and a decrease on each side of the accounting equation for each transaction
What is False (increase on either side or increase/decrease on same side)
400
Sales
What is Revenue, Increase/Normal balance - credit, Decrease - debit
400
When writing a check the first step is to prepare the check, then the stub.
What is False, check stub is first
400
510 Advertising Expense, 520 Misc. Expense, 530 Repair Expense. A new account titled Utilities Expense is added. The new number for this account is
What is 540
500
A form describing the goods or services sold, the quantity, and the price.
What is an invoice
500
Give an example of a transaction that takes place only on the asset side of the equation and an example of a transaction that takes place on both sides of the equation
What is example: paid cash for supplies, sold services on account
500
Owner's drawing
What is owner's equity, Increase/Normal balance - debit, Decrease - credit
500
Component percentages on the income statement are calculated by dividing sales and total expenses by net income
What is False, divide Total expenses and net income by sales
500
The value of prepaid insurance used during a fiscal period is a _________ to the company.