Fundamental Accounting - BPA

Which of the following accounts is increased with a debit?

Owners Capital

Prepaid insurance is expensed:

When it is consumed

Elizabeth is a sales person for a car dealer. Last week she received 296.00 salary plus a commission of 1% of her total sales of 63,255. How much were her gross earnings for the week?

928.55

If a companies assets are 106,219 with liabilities of 154,962, how much is capital?

(48,743) Debit

Which of the following is NOT am appropriate form of business organization?

Charter Certification

Financial statements are prepared with the expectation that a business with remain in operation indefinitely is the accounting concept of?

Going Concern

The three most common forms of check endorsements are?

Blank, Special, and restrictive

To calculate the component precentages on an income statement, divide

Each account by total sales

If the transactions for a business are properly analyzed and recorded, the total debits will equal the total credits on the

Trial Balance

Cash on hand at the beginning of the month, plus total cash received during the month, equals the cash balanced on hand at the end of the month. If t the balance on the next unused check sub is the same as the above calculation:

Cash is proved

Assume overtime is paid at 1.5 times the regular earning rate. If Donatello earns 125.50 per hour and works 43.5 hours in one week, his total earnings are:

56.63

Financial information is recorded and reported speratley from the owner's personal financial information. This accounting concept is called?

Business entity

Which is an asset account?

Prepaid Rent

A chart of accounts is typically begins with:

Asset Accounts

Which of the following does not result in the recording of an expense?

Owner withdrawal of cash

When a service has been preformed, but no cash is received as a payment, which of the following statements is true

the entry would include a debit to accounts receivable

Accounts that are continuous from one accounting period to the next where balances are carries forward are referred to as:

Permanent accounts

The balance sheet shows

the financial position of a business on a a specific date

The accounting principle stating that expenses are compared to revenues for the same period is called?

Matching

Dawanda Corporation paid cash for advertising and debited Misc. Expenses instead of Advertising expenses when entering a transaction. The correcting entry should contain?

A debit to advertising expense and a credit to Misc. Expenses

The process of transferring information form the journal to the individual general journal ledger accounts is called?

Posting

The source documents is used when a consumer makes a payment on his/her account is a

Recepit

Which of the following is NOT a temporary account?

Dawn Ovdaded, Capital

A set of rules used by all accountants to provided a consistent form when recording and reposting financial information is referred to as?

Generally accepted accounting principals

The accounting concept which states that eh actual amount paid for merchandise or other items bought in the accounting record is

Current cost

Sales

Revenue

Accounts Payable

Liablity

Cash

Asset

Repair Services

Revenue

Repair Expense

Expenses

Accounts Recievable

Asset

Equimpent

Asset

Income Summary

Owners Equity

Micha Monore, Capital

Owners Equity

Prepaid insurance

Asset

When only two asset accounts are changed in a transaction, there must be an increase and a decrease

True

A withdrawal is an expense

False

When cash is paid for supplies, the supplies account is increased by a debit

True

Cash is increased with a credit

False

Receiving cash from sales from sales increases two accounts in a state without sales tax

True

To correct an error in a journal, erase the incorrect item and replace with the correct item

False

If the previous account balance and the current entry posted to an account are both debits, new new account balance is a debit

True

The petty cash fund is a liability with a normal debit balance

False

The source document for a debit card purchase is a memo

False

The value of the prepaid insurance coverage used during a fiscal period is an expense

Truee

When the Income Statement Credit column total is greater than the Income Statement Debit column total on a worksheet, the business has an net income

True

The net income calculated for the income statement for a service business comes from a trial balance columns and the income statement columns of a worksheet

False

At the end of the fiscal period, the balances of temporary accounts are summarized and transferred to the owners capital account

True

A post-trial balance verifies the equality of debits and credits in a general ledger after the closing entries are posted

True

The right side of the T- account is the

Credit Side

When a business issues a check in payment of rent, Rent Expense is

Increased by a Debit

When services are sold on account for $300

Sales is increased with a credit; accounts receivable is increased with a debit

The last step in the posting procedure is

Record the ledger account number in the Pof. Ref. 3 in the general journal

The bank statement shows a checking account balance of 4,800. There are outstanding checks totaling $400, an outstanding deposit of $200, and a bank service charge of $15. The adjusted bank statement balance should be

$4,600

The date on a monthly income statement prepared on September 30 is written as

For month Ended September 30, 20--

When preparing a balance sheet, amounts need to determine an owner's capital are obtained form

The balance sheet, Credit side of owners capital

When the total expenses are greater than the total revenue?

the income summary account has a debit balance

The journal entry to close Income summary when there is a net income is:

A debit Income Summary; Credit Owners Capital

A net loss is entered in the worksheets:

Income statement credit and balance sheet debit column

The amount of cash received for a sale on account of $1,200 with a 7% sales tax when cash is received with in the 2% discount period is

$1258.38

Ann Eagle is paid $9.80 per hour with a time and a half for hours over 40 per week. In a two-week pay period, she worked a total of 85 hours. What was Ann's total for the two-week pay period?

$857.50

The journal entry to journalize a paying a vendor account is

a credit to cash in bank; debit to accounts payable

How would you calculate ending capital for a sole proprietorship?

Beginning capital minus net income plus drawing

The accounts receivable ledger contains only accounts

Of charged customers

Financial Statements are used by

Management, Government agencies and creditors.

Which of the following agencies are charged with the primary responsibility for developing accounting principals

FASB (financial Accounting Standards Board)

The assets and owner's equity of a company are 192,000 and 110,000, respectively. Liabilities must be equal to

82,000

Supplies purchased on account for future use in the business are classified as

Assets

The asset created when a business makes a sale on account

Accounts Receivable

In accounting terms, a creditor has a claim against the assets of a business. That claim is reflected in the accounting records as a

Liablity

Accounts are listen in the general ledger

in accordance with their appearance in the chart of accounts

A debit may signify a

Decrease in a liablity

Which of the following is the final step in the accounting cycle?

Preparing a post-trial balance

The process of initially recording a business transaction is called?

Journalizing

The process of transferring the journal entries to the general ledger is known as

posting

which of the following errors will cause the trial balance totals to be unequal?

Posting a transaction to both accounts as credits

Using accrual accounting, revenue is recorded and reported only

when the service is rendered without regard to when cash is received.

Adjusting entries will always involve

At lease on income statement and one balance sheet account

Which of the following is a temporary account?

Scott Thompson, Drawing

What best describes the logical order during the end-of- period procedures?

Prepare worksheet, financial statements, closing entries

The balance sheet should be prepared

after the income statement and summary of owners equity

What is the order to prepare the closing entrie

revenues, expense, income summary, drawing

A fiscal year

is twelve months period that may be different for different companies

The amount of net income for an accounting period represents an increase in

Owners Equity

The primary ledger containing all of the balances sheet and income statement accounts is called

General ledger

Beginning accounts payable shows a balance of $4,150. Debits to the account to the month total $2,200. while credits total 2, 500. What is the ending balance for accounts payable

4,450

The entry to establish a petty cash fund of $500 is

Debit: Petty Cash-500
Credit:Cash- 500

What method describes the balancing of the checkbook and the bank balance

Bank reconciliation

Accounts Receivable

Asset Account ; Debit balance

Peggy Lind, Capital

Owner's Equity ; Credit Balance

Fees Earned

Revenue Account ; Credit Balance

Wages Payable

Liability ; Credit Balance

Cash

Asset Account ; Debit Balance

Utilities Expense

Expense ; Debit Balance

Prepaid Insurance

Asset Account ; Debit Balance

Accounts Payable

Liability Account ; Credit Balance

Interest Expense

Expense ; Debit Balance

Equipment

Asset Account ; Debit Balance

Peggy Lind, Drawing

Owners Equity Account ; Credit Balance

Sales

Revenue Account ; Credit Balance