Terminology
Accounts used to accumulate information from one fiscal period to the next.
What are permanent accounts?
True or false?
When cash is short, the entry to replenish petty cash includes a debit to Cash Short and Over.
What is True
The last step in the posting procedure.
What is write the account number in the Post. Ref. column of the journal.
A customer prepares this each time cash or checks are placed in a bank account.
What is a deposit slip?
Owner deposits $100,000.00 of his personal cash into his new business' checking account. Receipt 1
What is
debit cash $100,000.00
credit owner's capital $100,000.00
A customer notifies the vendor that purchased merchandise is damaged and cannot be sold at the normal price. Any credit granted to the customer would be called this.
what is a sales allowance?
The entry to establish a $200.00 petty cash fund.
What is debit Petty Cash, $200.00; credit Cash, $200.00?
The second step in the posting procedure.
What is write the journal page number in the Post. Ref. column of the account.
True or False?
The amount of net income calculated on an income statement is correct if it is the same as the net income shown on the balance sheet.
What is False?
(The amount of net income calculated on an income statement is correct if it is the same as the net income shown on the work sheet)
The business purchased $2,500.00 of office equipment on account from Discount Furniture. Invoice 21
What is
Debit Office Equipment $2,500.00
Credit Accounts Payable -Discount Furniture $2,500.00
Preparing financial statements at the end of each monthly fiscal period is an application of this accounting concept.
What is accounting period cycle?
Marris Company records a $1,000.00 sale on account on May 23. On June 6, the customer pays the account. The sale should be recorded on this day, in this journal.
What is sales journal on May 23?
The accounts that appear on the post-closing trial balance
What are assets, liabilities, and owner’s capital?
The formula for calculating the net income ratio.
What is net income divided by total sales?
The business received $500.00 cash from customer for repair services. Receipt 30
what is
Debit cash $500.00
Credit Sales- Repairs $500.00
The Purchases account is classified as this.
What is cost of goods sold account?
True or false?
The purchase of supplies on account results in a credit to Accounts Payable and the vendor’s accounts payable account.
What is true?
True or False?
If posting is interrupted, the accounting personnel know to resume posting at the beginning of the journal page.
What is false.
(Posting should resume on the line with a blank Post. Ref. column in the journal)
When the total expenses are greater than the total revenues, the income summary account will have this balance.
What is the Income Summary account has a debit balance?
Paid $2,500.00 bill owed to discount Furniture for purchase of office furniture. Check 32
What is
Debit Accounts payable - Discount Furniture $2,500.00
Credit Cash $2,500.00
When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the accounting personnel are doing this.
For a sale on account of $1,000.00 plus sales tax of $80.00, this amount is recorded in the Accounts Receivable amount column of a sales journal.
What is $1080.00?
The Accumulated Earnings column of the employee earnings record shows this.
What is the total earnings since the first of the year?
Information needed to prepare an income statement’s Expense section is obtained from a work sheet’s Account Title column and this column.
What is Income Statement Debit column?
Provided repair services on account to Walden Inc. The total owed is $100.00. Invoice 5.
What is
Credit Accounts Receivable - Walden Inc. $100.00
Debit Sales - Repairs $100.00