1. Accounting 1 Review #2
State Test

2. An income statement shows total revenues earned, total expenses paid, and:
Net expenses
Net Income or Net Loss
Total income
Balance of all permanent accounts

3. A balance sheet reports financial information ____, indicating the financial condition of a business
Daily
At the end of the fiscal period
At the end of the month
On a specific date

4. The Income Summary account is unique because:
It does not have a normal balance side
It always has a zero balance
It always has a credit balance
It always has a debit balance

5. Reports prepared to summarize the changes resulting from business transactions that have occurred during a fiscal period:
Bank Statement
Balance Sheet
Income Statement
Financial Statements

6. A check with a future date is called a ___ check.
Futures
Postdated
Staledated
Voided

7. A check that is recorded in the depositor’s records but not on the bank statement is called a(n):
Outstanding deposit
Postdated check
Staledated check
Outstanding check

8. Which of the following is a temporary account?
Assets
Revenue
Liabilities
Capital

9. When using closing entries, you close expenses into what account?
Income Summary
Capital
Revenue
Liabilities

10. A form on which a brief message is written describing a transaction.
Check
Receipt
Check stub
Memorandum

11. The process of matching your checkbook register with your bank statement is called:
Checking
Reporting
Adjusting
Reconciling

12. The amount of cash kept on hand and used for making small payments:
Excess Cash
Petty Cash
Payment Cash
Revenue Cash

13. A check the bank refuses to pay is called a(n):
Dishonored Check
Voided Check
Canceled Check
Bounced Check

14. Which of the following accounts is not used in the Statement of Changes in Owner’s Equity?
Net Income
Capital
Cash
Withdrawals

15. Determining that the amount of cash agrees with the accounting records is called?
Balancing the account
Verifying records
Proving cash
Ruling

16. A trial balance prepared after the closing entries are posted:
Post Closing Trial Balance
Final Trial Balance
Ending Trial Balance
Fiscal Trial Balance

17. Temporary account in the general ledger that is only used for closing entries:
Capital
Drawing
Income Summary
Sales

18. A report of deposits, withdrawals, and bank balances sent to a depositor by a bank is called:
a bank reconciliation
a bank statement
a bank record
bank adjustments

19. If total expenses exceed _____, a net loss is reported on an income statement.
net expenses
profit
total revenue
net income

20. Which accounting concept is applied when financial statements are prepared with the expectation that a business will remain in operation indefinitely?
Continual operation
Indefinite operation
Continual concern
Going concern

21. Accounts used to accumulate information from one fiscal period to the next are called ___ accounts.
cumulative
permanent
carry-over
perennial

22. Journal entries used to prepare temporary accounts for a new fiscal period.
Adjusting entries
Closing entries
Correcting entries
Journal entries

23. Putting lines under an amount column to show that the amounts are in balance and work is accurate.
Double ruling
Single ruling
Proving
Equaling

24. Accounts used to accumulate information until it is transferred to the owner’s capital section.
Permanent accounts
Adjusting accounts
Temporary accounts
Closing accounts

25. Information needed to prepare the ____ section of a balance sheet is obtained from the work sheet’s Account Title column and the Balance Sheet credit column.
assets
liabilities
owner’s equity
total liabilities and owner’s equity

26. A business form giving written acknowledgement for cash received:
Invoice
Receipt
Check stub
Memorandum