POST T

EST REVIEW

Y O U AR E A

L M O S T DO N E …

…

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 businessB. owner's equityC. a financial reportD. a transaction

A business form ordering a bank to pay cash from a bank account is a ____.

A. signature cardB. CheckC. deposit slipD. none of the above

When services are sold on account for $500.00, ____.

A. Sales is decreased with a debit and Accounts Receivable is increased with a creditB. Sales is increased with a debit and Accounts Receivable is increased with a creditC. Sales is increased with a credit and Accounts Receivable is increased with a debitD. Sales is increased with a debit and Accounts Receivable is increased with a debit

Prepaid Insurance is ____.

A. an asset accountB. an owner's equity accountC. a liability accountD. none of the above

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. 540B. 525 D. 550

When a business buys an asset on one date and agrees to pay on a later date, the transaction is ____.

A. delayedB. increasedC. on accountD. none of the above

The account debited when cash is paid for supplies is ____.

A. SuppliesB. Supplies ExpenseC. CashD. none of the above

Transactions are recorded in a journal in order by ____.

A. dateB. source documentC. account nameD. none of the above

The account debited when cash is paid for supplies is ____.

A. SuppliesB. Supplies ExpenseC. CashD. none of the above

When services are sold on account, ____.

A. Accounts Receivable is debited and Sales is creditedB. Sales is debited and Accounts Receivable is creditedC. Accounts Payable is debited and Sales is creditedD. Sales is debited and Accounts Payable is credited

The journal entry to close Sales is ____.

A. debit Income Summary; credit SalesB. debit Sales; credit Income SummaryC. debit Income Summary; credit owner's capitalD. none of the above

The entry to establish a $200.00 petty cash fund is ____.

A. debit Cash, $200.00; credit Petty Cash, $200.00B. debit Miscellaneous Expense, $200.00; credit Cash, $200.00C. debit Petty Cash, $200.00; credit Cash, $200.00D. debit Petty Cash, $200.00; credit Miscellaneous Expense, $200.00

The date on a monthly income statement prepared on July 31 is written as ____.

A. For Month Ended July 31, 20—B. 20--, July 31 C. July 31, 20--D. none of the above

Temporary accounts begin each new fiscal period with a ____.

A. debit balanceB. zero balanceC. credit balanceD. balance equal to the net income

A columnar form used to summarize general ledger information needed to prepare financial statements is ____.

A. a balance sheetB. a work sheetC. a trial balanceD. an income statement

The journal entry to adjust Supplies is ____.

A. debit Supplies; credit Supplies ExpenseB. debit Supplies Expense; credit SuppliesC. debit Income Summary; credit SuppliesD. debit Supplies Expense; credit Income Summary

When total revenue is greater than total expenses, the difference is a ____.

A.net incomeB.debit balanceC.net lossD.none of the above

Accounts used to accumulate information from one fiscal period to the next are ____ accounts.

A.RevenueB.TemporaryC.PermanentD.expense

Information needed to prepare a balance sheet liabilities section is obtained from a work sheet's Account Title column and ____.

A.Income Statement Debit columnB.Balance Sheet Debit columnC.Income Statement Credit columnD.Balance Sheet Credit column

Information needed to prepare an income statement's expense section is obtained from a work sheet's Account Title column and ____.

A. Income Statement Debit columnB. Balance Sheet Debit columnC. Income Statement Credit columnD. Balance Sheet Credit column

After the closing entries are posted, the only accounts with balances are ____ accounts.

A. owner's equityB. TemporaryC. PermanentD. asset

The journal entry for a cash and credit card sales transaction is ____.

A. debit Cash; credit Sales; credit Sales Tax Payable

B. debit Cash; debit Sales Tax Payable; credit Sales

C. debit Sales; credit Cash; credit Sales Tax Payable

D. debit Sales Tax Payable; debit Cash; credit Sales

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

A.$300.00B.$324.00C.$304.00D.$342.00

Supplies bought for use in a business are recorded in the ____.

A.supplies expense accountB.supplies accountC.purchases accountD.cash account

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

A. schedule of accounts payableB. subsidiary ledgerC. schedule of accounts receivableD. controlling list

A form prepared by the vendor showing the amount deducted for returns and allowances is called a ____.

A. credit memorandumB. purchase invoiceC. sales invoiceD. cash receipt

The entry to journalize buying supplies for cash is ____.A. debit Supplies; credit CashB. debit Accounts Payable; credit SuppliesC. debit Purchases; credit CashD. debit Purchases; credit Supplies

A special journal used to record only cash receipt transactions is ____.

A.a cash journalB.a cash receipts journalC.a purchases journalD.none of the above

When merchandise is sold on account and sales tax is also collected, ____.

A. Accounts Receivable is credited for the total sale and sales taxB. the accounts receivable account balance is increasedC. Sales is debited for the price of the goodsD. the sales tax is not reported

The ledger that contains all accounts needed to prepare financial statements is the ____.

A. accounts payable ledgerB. general ledgerC. accounts receivable ledgerD. subsidiary ledger

Medicare is for people who ____.

A. have a disabilityB. have reached retirement ageC. are in the hospitalD. are under 50 years of age

Each employee name is listed in a payroll register along with ____.

A. employee numberB. withholding allowancesC. marital statusD. all of the above

The total of the schedule of accounts receivable should equal ____.

A. the accounts receivable account balance in the general ledgerB. the cash accountC. the debit and credit proofD. none of the above

Employers must pay payroll taxes for ____.

A. social security and Medicare and sales taxesB. social security and Medicare, federal unemployment, and state unemployment taxesC. federal income and social security and Medicare taxesD. none of the above

Social security tax is calculated by ____.

A. multiplying total earnings by the tax rateB. multiplying net earnings by the tax rateC. using a tax tableD. none of the above

Accurate and detailed payroll records ____.

A. do not have to be retainedB. must be maintainedC. are the responsibility of the employee, not the businessD. none of the above

Individual payroll checks are usually written on ____.

A. a company's regular checking accountB. a special payroll checking accountC. a special purposes accountD. an employee earnings account

Employers are required to furnish each employee an annual statement of earnings and withholdings before ____.

A. December 31 of the current yearB. January 1 of the following yearC. January 15 of the following yearD. January 31 of the following year

Until payment is made, payroll taxes for an employer are ____.

A. an assetB. CapitalC. a liabilityD. an expense

The period covered by a salary payment is a ____.

A. bimonthly baseB. pay periodC. pay scheduleD. payroll