1. Reports and Financial records of the business are kept separate from the personal records

2. Business Entity Concept

3. Following the same accounting procedures in the same way in each accounting period is an application of the which concept

4. Consistent Reporting

5. A business prepares a balance sheet to report information about

6. the business's assets, liabilities, and owner's equity

7. A business that buys and resells merchandise to retail merchandising businesses is called

8. Wholesale Merchandising Business

9. Keeping the reports and financial records of a business separate from the personal records of the partners is an application of the accounting concept

10. Business Entity

11. The price a business pays for goods it purchases to sell

12. Cost of merchandise

13. Increases in an owner's capital account are shown on a T account's

14. credit side

15. A business expecting to make money and continue in business indefinitely is applying the accounting concept

16. Going Concern

17. The amount added to the cost of merchandise to establish the selling price is called

18. Markup

19. The employer social security tax rate is based on

20. the same rate and earnings as employee social security tax

21. The procedure for transferring information from a journal entry to a ledger account is

22. Posting

23. A business from which merchandise is purchased

24. Vendor

25. An agreement between a buyer and a seller about payment for merchandise is called

26. Terms of Sale

27. Tax on the sale of merchandise or services

28. Sales Tax

29. The amount of sales tax collected is a business ______________ until it is paid to the state government.

30. Liability

31. Accounting concept applied when a sales invoice is used as a source document for recording a sale on account

32. Objective Evidence

33. A ledger that is summarized in a single ledger account

34. Subsidiary Ledger

35. A subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account

36. Accounts payable ledger

37. A subsidiary ledger containing only accounts for charge customers

38. Accounts receivable ledger

39. An account in a general ledger that summarizes all accounts in a subsidiary ledger

40. Controlling Account

41. A listing of customer accounts, account balances, and total amount due from all customers is called

42. Schedule of accounts receivable

43. To prove the accuracy of posting, what three things must be done:

44. 1. Cash is Proved 2. Subsidiary schedules are prepared to prove that the total of the balances in the subsidiary ledgers equals the balance of the controlling account in the general ledger. 3. A trial balance is prepared to prove that debits equal credits in the general ledger

45. The total amount earned by all employees for a pay period is called

46. Payroll

47. The total pay due for a pay period before deductions

48. Total Earnings

49. Taxes based on the payroll of a business are called

50. Payroll Taxes

51. A deduction from total earning for each person legally supported by a taxpayer including the employee

52. Withholding allowance

53. What does FICA stand for?

54. Federal Insurance Contributions Act

55. What is FICA for?

56. Provides for a federal system of old-age, survivors, disability, and hospital insurance.

57. A federal tax paid for old-age, survivors, and disability insurance is called

58. Social Security Tax

59. A federal tax paid for hospital insurance is called

60. Medicare Tax

61. A business form used to record payroll information is called a

62. Payroll Register

63. In general, when are employers required to pay state unemployment taxes

64. During the month following each calendar quarter

65. A form used to record details affecting payments made to an employee is called

66. An employee earnings record

67. A federal tax used for state and federal administrative expenses of the unemployment program is called

68. Federal Unemployment Tax

69. The accounting concept applied when adjusting entries bring general ledger account balances up to date and when the closing entries prepare temporary accounts for the next fiscal period.

70. Matching Expenses with Revenue

71. A state tax used to pay benefits to unemployed workers is called

72. State Unemployment Tax

73. An annual report provided to an employee that summarizes the total year’s earnings, and the amounts withheld from taxes for an employee

74. W-2 Wage and Tax Statement

75. The accounting concept applied when a work sheet is prepared at the end of each fiscal period because financial statements are prepared at the end of each fiscal period

76. Accounting Period Cycle

77. The amount of goods on hand for sale to customers is called

78. Merchandise Inventory

79. All the payroll information needed to prepare a payroll and tax reports are found on

80. the payroll register and the employee earnings record

81. The accounting concept applied when expenses in the fiscal period are recorded in the same period as when the expenses contributed to earning revenue to ensure accurate reporting.

82. Matching Expenses with Revenue

83. The accounting concept applied when The prepaid insurance account balance must be adjusted to bring the balance up to date.

84. Matching Expenses with Revenue

85. The total earnings subject to federal unemployment tax is referred to as

86. unemployment taxable earnings

87. Accounting concept applied when the financial statements are prepared to show a business’s financial condition, changes in the financial condition and the progress of operations

88. Adequate disclosure

89. Accounting concept applied when financial information is reported the same way from one fiscal period to the next

90. Consistent Reporting

91. The two additional financial statements that a partnership must prepare, that a sole proprietor does not

92. Distribution of Net Income and Statement of Owner’s Equity

93. The accounting concept applied when the total original price of all merchandise sold during a fiscal period is reported as the cost of merchandise sold.

94. Historical Cost

95. The revenue remaining after cost of merchandise sold has been deducted

96. Gross Profit on Sales

97. A partnership financial statement showing net income or loss distribution to partners is called

98. Distribution of Net Income Statement

99. A financial statement that summarizes the changes in owners’ equity during a fiscal period is called

100. Owners’ Equity Statement

101. What three factors can change owner’s equity:

102. Additional investments 2) Withdrawals 3) Net Income/Loss