1. Cooley 2012-13

2. An equation showing the relationship among assets, liabilities, and owner’s equity.

3. An increase in owner’s equity resulting from the operation of a business

4. A business paper from which information is obtained for a journal entry

5. Accounts used to accumulate information until it is transferred to the owner’s capital account

6. A business that performs an activity for a fee.

7. Journal entries recorded to update general ledger accounts at the end of the fiscal period

8. A columnar accounting form used to summarize the general ledger information needed to prepare financial statements

9. A list of accounts used by a business

10. Journal entries used to prepare temporary accounts for a new fiscal period.

11. A financial statement that reports assets, liabilities, and owner’s equity on a specific date.

12. Transferring information from a journal entry to a ledger account.

13. An accounting device used to analyze transactions.

14. A proof of the equality of debits and credits in a general ledger.

15. A business owned by one person

16. A trial balance prepared after the closing entries are posted

17. TRUE or FALSE? Making adjustments to general ledger accounts is an application of the Matching Expenses with Revenue accounting concept.

18. TRUE or FALSE? The posting reference should always be recorded in the journal’s Post. Ref. column before amounts are recorded in the ledger

19. TRUE or FALSE? The current capital to be reported on a balance sheet is calculated as the capital account balance plus net income equals current capital.

20. TRUE or FALSE? Blank endorsements should be used when sending checks through the mail.

21. TRUE or FALSE? Temporary accounts must start each fiscal period with a zero balance.

22. TRUE or FALSE? The balances of the expense accounts must be reduced to zero to prepare the accounts for the next fiscal period.

23. TRUE or FALSE? Net income on a work sheet is calculated by subtracting the Income Statement Credit column total from the Income Statement Debit column total.

24. TRUE or FALSE? The formula for calculating the total expenses component percentage is total expenses divided by total sales equals total expenses component percentage

25. TRUE or FALSE? The value of the prepaid insurance coverage used during a fiscal period is an expense.

26. TRUE or FALSE? When the petty cash fund is replenished, the balance of the petty cash account increases.

27. TRUE or FALSE? The only reason for the Post. Ref. Columns of the journal and general ledger is to indicate which entries in the journal still need to be posted if posting is interrupted.

28. TRUE or FALSE? The current capital to be reported on a balance sheet is calculated as the capital account balance plus net income equals current capital.

29. TRUE or FALSE? The account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure.

30. TRUE or FALSE? A double line ruled across both Trial Balance columns shows that the two columns are to be totaled.

31. TRUE or FALSE? The balance of the supplies account plus the value of the supplies on hand equals the up-to-date balance of the supplies account.

32. A petty cash fund is always replenished None of these daily weekly At the end of the month

33. An account number in the journal’s Post.Ref. column shows None of these The work on that journal page is completed The date of the entry The account to which an amount is posted.

34. A net loss is entered in the work sheet’s Income Statement Debit and Trial Balance Credit columns Balance Sheet Debit and Trial Balance Credit columns Income Statement Debit and Balance Sheet Credit columns Income Statement Credit and Balance Sheet Debit columns

35. Preparing financial statements at the end of each monthly fiscal period is an application of the accounting concept Going Concern Objective Evidence Adequate Disclosure Accounting Period Cycle

36. On a work sheet, the balance of the Sales account is extended to Balance Sheet Credit column Income Statement Debit column Balance Sheet Debit column Income Statement Credit column

37. The journal entry to adjust Supplies is Debit Supplies Expense; credit Income Summary Debit Income Summary; credit Supplies Debit Supplies; credit Supplies Expense Debit Supplies Expense; credit Supplies

38. Posting references in a journal are Always placed in an account’s Post. Ref. column The first item recorded when posting Not necessary None of these

39. The bank statement shows an account balance of $5,500.00. There are outstanding checks totaling $600.00 and an outstanding deposit of $400.00. The adjusted bank balance should be None of these $5,285.00 $5,700.00 $5,300.00

40. An endorsement on the back of a check indicating that the check is to be accepted for deposit only is a Deposit Endorsement Special Endorsement Blank Endorsement Restrictive Endorsement

41. The formula for calculating the net income component percentage is None of these Total sales minus total expenses divided by net income equals total net income percentage Total sales divided by total expenses equals net income component percentage Net income divided by total sales equals net income component percentage

42. After the adjusting entry for Supplies has been posted, Supplies Expense has an up-to-date balance that is the Value of supplies bought during the fiscal period Same as the ending balance for Supplies Same as the beginning balance for Supplies Value of supplies used during the fiscal period

43. The journal entry to close the expense accounts is None of these Debit each expense account; credit Income Summary Debit Income Summary; credit owner’s capital Debit Income Summary for the total expense; credit each expense account

44. The last step in the posting procedure is writing The entry amount in the debit or Credit column of the account The journal page number in the Post.Ref. column of the account The entry date in the Date column of the account None of these

45. Following the same accounting procedures in the same way in each accounting period is an application of the account concept Going Concern Accounting Period Cycle Matching Expenses with Revenue Consistent Reporting

46. A lost check with a blank endorsement on it can be cashed by No one Only the person who endorsed the check. Only the person whose name follows the words “Pay to the order of.” Anyone who has the check

47. After the adjusting entry for Prepaid Insurance has been posted, Insurance Expense has an up-to-date balance that is the Value of insurance premiums bought during the fiscal period Same as the ending balance for Prepaid Insurance Same as the beginning balance for Prepaid Insurance Value of insurance premiums used during the fiscal period

48. The journal entry to close Sales is None of these Debit Income Summary; Credit Sales Debit Income Summary; credit Owner’s Capital Debit Sales; credit Income Summary

49. The entry to establish a $200.00 petty cash fund is Debit Petty Cash, $200.00; credit Miscellaneous Expense $200.00 Debit Miscellaneous Expense, $200.00; credit Cash, $200.00 Debit Cash, $200.00; credit Petty Cash, $200.00 Debit petty Cash, $200.00; credit Cash, $200.00