Post test Review

1. Post test Review You are almost done……

2. The amount remaining after the value of all liabilities is subtracted from the value of all assets is ____. A. the fair market value of the business B. owner's equity C. a financial report D. a transaction

3. A business form ordering a bank to pay cash from a bank account is a ____. signature card Check deposit slip none of the above

4. When services are sold on account for $500.00, ____. A. Sales is decreased with a debit and Accounts Receivable is increased with a credit B. Sales is increased with a debit and Accounts Receivable is increased with a credit C. Sales is increased with a credit and Accounts Receivable is increased with a debit D. Sales is increased with a debit and Accounts Receivable is increased with a debit

5. Prepaid Insurance is ____. A. an asset account B. an owner's equity account C. a liability account D. none of the above

6. A business has the following expense accounts: 510, Advertising Expense; 520, Miscellaneous Expense; 530, Repair Expense. A new account titled Utilities Expense is added. The account number for this new account is ____. A. 515 C. 540 B. 525 D. 550

7. When a business buys an asset on one date and agrees to pay on a later date, the transaction is ____. delayed increased C. on account D. none of the above

8. The account debited when cash is paid for supplies is ____. Supplies Supplies Expense Cash D. none of the above

9. Transactions are recorded in a journal in order by ____. date source document C. account name D. none of the above

10. The account debited when cash is paid for supplies is ____. Supplies Supplies Expense Cash none of the above

11. When services are sold on account, ____. A. Accounts Receivable is debited and Sales is credited B. Sales is debited and Accounts Receivable is credited C. Accounts Payable is debited and Sales is credited D. Sales is debited and Accounts Payable is credited

12. The journal entry to close Sales is ____. debit Income Summary; credit Sales B. debit Sales; credit Income Summary C. debit Income Summary; credit owner's capital D. none of the above

13. The entry to establish a $200.00 petty cash fund is ____. A. debit Cash, $200.00; credit Petty Cash, $200.00 B. debit Miscellaneous Expense, $200.00; credit Cash, $200.00 C. debit Petty Cash, $200.00; credit Cash, $200.00 D. debit Petty Cash, $200.00; credit Miscellaneous Expense, $200.00

14. The date on a monthly income statement prepared on July 31 is written as ____. For Month Ended July 31, 20— 20--, July 31 July 31, 20-- none of the above

15. Temporary accounts begin each new fiscal period with a ____. debit balance zero balance credit balance balance equal to the net income

16. A columnar form used to summarize general ledger information needed to prepare financial statements is ____. a balance sheet a work sheet a trial balance an income statement

17. The journal entry to adjust Supplies is ____. A. debit Supplies; credit Supplies Expense B. debit Supplies Expense; credit Supplies C. debit Income Summary; credit Supplies D. debit Supplies Expense; credit Income Summary

18. When total revenue is greater than total expenses, the difference is a ____. net income debit balance net loss none of the above

19. Accounts used to accumulate information from one fiscal period to the next are ____ accounts. Revenue Temporary Permanent expense

20. Information needed to prepare a balance sheet liabilities section is obtained from a work sheet's Account Title column and ____. Income Statement Debit column Balance Sheet Debit column Income Statement Credit column Balance Sheet Credit column

21. Information needed to prepare an income statement's expense section is obtained from a work sheet's Account Title column and ____. Income Statement Debit column Balance Sheet Debit column Income Statement Credit column Balance Sheet Credit column

22. After the closing entries are posted, the only accounts with balances are ____ accounts. owner's equity Temporary Permanent asset

23. The journal entry for a cash and credit card sales transaction is ____. debit Cash; credit Sales; credit Sales Tax Payable debit Cash; debit Sales Tax Payable; credit Sales debit Sales; credit Cash; credit Sales Tax Payable debit Sales Tax Payable; debit Cash; credit Sales

24. If a customer buys $300.00 worth of merchandise and the sales tax is 8%, the total bill the customer must pay is ____. $300.00 $324.00 $304.00 $342.00

25. Supplies bought for use in a business are recorded in the ____. supplies expense account supplies account purchases account cash account

26. A listing of customer accounts, account balances, and total amount due from all customers is a ____. schedule of accounts payable subsidiary ledger schedule of accounts receivable controlling list

27. A form prepared by the vendor showing the amount deducted for returns and allowances is called a ____. credit memorandum purchase invoice sales invoice cash receipt

28. The entry to journalize buying supplies for cash is ____. A. debit Supplies; credit Cash B. debit Accounts Payable; credit Supplies C. debit Purchases; credit Cash D. debit Purchases; credit Supplies

29. A special journal used to record only cash receipt transactions is ____. a cash journal a cash receipts journal a purchases journal none of the above

30. When merchandise is sold on account and sales tax is also collected, ____. A. Accounts Receivable is credited for the total sale and sales tax B. the accounts receivable account balance is increased C. Sales is debited for the price of the goods D. the sales tax is not reported

31. The ledger that contains all accounts needed to prepare financial statements is the ____. accounts payable ledger general ledger accounts receivable ledger subsidiary ledger

32. Medicare is for people who ____. have a disability have reached retirement age are in the hospital are under 50 years of age

33. Each employee name is listed in a payroll register along with ____. employee number withholding allowances marital status all of the above

34. The total of the schedule of accounts receivable should equal ____. A. the accounts receivable account balance in the general ledger B. the cash account C. the debit and credit proof D. none of the above

35. Employers must pay payroll taxes for ____. A. social security and Medicare and sales taxes B. social security and Medicare, federal unemployment, and state unemployment taxes C. federal income and social security and Medicare taxes D. none of the above

36. Social security tax is calculated by ____. A. multiplying total earnings by the tax rate B. multiplying net earnings by the tax rate C. using a tax table D. none of the above

37. Accurate and detailed payroll records ____. A. do not have to be retained B. must be maintained C. are the responsibility of the employee, not the business D. none of the above

38. Individual payroll checks are usually written on ____. A. a company's regular checking account B. a special payroll checking account C. a special purposes account D. an employee earnings account

39. Employers are required to furnish each employee an annual statement of earnings and withholdings before ____. A. December 31 of the current year B. January 1 of the following year C. January 15 of the following year D. January 31 of the following year

40. Until payment is made, payroll taxes for an employer are ____. an asset Capital a liability an expense

41. The period covered by a salary payment is a ____. bimonthly base pay period pay schedule payroll