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Accounting Funeral Service CompendCreated by jessie_parker

242 termsBasic accounting theory is based ondouble entry

The group of accounts which you debit when increased areassets and expenses

The group of accounts which you credit to increase areliabilit ies and capital

When a funeral director buys a casket coach on credit he would,debit casket coach and credit accounts payable The payment of rent by cash is recordeddebit rent expense and credit cash Purchase of off ice supplies on credit is recorded bydebit of f ice supplies and credit accounts payable A ledger is a book ofaccounts

An entry on the debit side of a liability account indicates the account has beendecreased

An entry made on the debit side of the proprietorship account indicates that the accounthas beendecreased

An entry made on the debit side of an expense account indicates that the account hasbeenincreased

The beginning balance in the supplies account is $600. During the month an addit ional $800worth of supplies were purchased. At the end of the month an inventory of supplies foundthat only $300 remained on hand. What would be the amount of the adjust ing entry for thesupplies account$1100

An entry made on the debit side of an asset account indicates that the account has beenincreased

The things of value owned by a business areassets

An accounting year ending on some other date than 12/31 is calledFiscal Year

A person to whom a debt is owed is called acreditor

A plant asset was purchased by the funeral home costing $8000. It has a useful life of 3 yrsand a salvage value of $2000. Using the straight line method of depreciat ion, what wouldthe yearly amount of depreciat ion be?$2,000

What does not appear on the balance sheet?Expenses

Liabilit ies are all things a funeral director

Owes

A prof it and loss statement can be preparedat any time

An entry on the credit side of a revenue account indicates the account has beenincreased

When cash is spent in the acquisit ion of an asset the net worth of a business isnot af f ected

The process of recording information in the ledger is calledposting

Accounts Receivable is a/anAsset Account

Another term for prof it and loss statement isIncome Statement

The amount of revenue from the sale of funeral services would be shown on theProf it and Loss Statement

The right side of a standard account is called thecredit side

The totaling of a column in a journal or ledger account is calledf ooting

Advert ising expense would be ref lected on theIncome Statement

The accounts payable account would be shown on theBalance Sheet

A group of accounts constitutes aledger

If the total of the operat ing expense sect ion of the income statement is smaller than thetotal of the income sect ion the dif ferenceis net prof it

Expense means a/andecrease in the owners equity

Which of the following accounts would be used to assist the accountant in an adjust ingentry?Accumulated Depreciation

The dif ference between the two sides of an account is calledaccount balance

The t it le of an account which would normally have a credit balance isaccounts payable

An increase in proprietorship as the result of a business transact ion is a/anIncome

A list of accounts that shows the arrangement of the accounts in the ledger is called

Chart of accounts

Double entry bookkeeping means an entry is madeas a debit and a credit

The proprietorship of a business may be increased byNet income and investment of assets in the business by the owner The proprietorship of a business may be decreased byexpenses and withdrawals of assets in the business by the owner To establish a petty cash fund one woulddebit petty cash and credit cash The abbreviat ion for debit isDr

The abbreviat ion for credit isCr

A person who signs a check or draft ordering payment to be made is called theDrawer

A person or concern, usually a bank, that has been ordered to make payment on a check ordraft is called theDrawee

A person or company who will receive payment on a promissory note, check, draft , ormoney order is called thePayee

F.I.C.A refers toSocial Security

Property of a relat ively permanent nature used in the operat ion of the business and notintended for resale is calledFixed Asset

Debts that are not due and payable within a year are calledFixed Liabilit ies

The dif ference between cost of goods sold and their selling price is calledGross Prof it

The excess of current assets over current liabilit ies is calledWorking Capital

A writ ten promise of a customer to pay the business a sum of money at a future date iscalledNote Receivable

Which of these does not qualify as a current asset?Land

A synonym for fair wear and tear of a durable asset isDepreciation

A language of business employed to communicate f inancial information based upon therecording, classif icat ion, summarizat ion, and interpretat ion of f inancial data is calledAccounting

Assets= Liabilit ies + Owners Equity is theAccounting Equation

The increase in net worth due to the excess of income over costs and expenses is calledProf it

Money paid for the use of money is calledInterest

The dif ference between net sales and cost of goods sold isGross Margin

Goods purchased for resale at a prof it isMerchandise

A disbursement is aPayment

What would be the closing entry to close the revenue account?Debit revenue, credit expense, and revenue summary Income received but not yet earned isDef erred income

A paper showing quantity, descript ion, prices of items, total amount of purchase, andterms of payment is a/anInvoice

One who has made a sale is called a/anVendor

An est imate of revenue and probable expense for a given period of t ime is aBudget

The person or business concern to whom a shipment is made is aConsignee

A distribut ion of prof its of a corporat ion to its stockholders as declared by the board ofdirector isDividend

The person who orders the bank to make payment of a f inancial instrument is properlytermed a/anDrawer

The sole owner of a business is aProprietor

A fund of currency and coin established for the payment of small amounts of money isPetty Cash

The dif ference between total sales and sales returns and allowances isNet Sales

The amount added to the cost of an art icle to determine the selling price of the art icle istheMarkup

A total, writ ten in small pencil f igures, under the last entry in a column is theFooting

A double line under the last entry on a T-account meansThe entry is complete

Increases in the owners equity result ing from business operat ions is known asIncome

That port ion of a plant assets original cost that cannot be depreciated is calledScrap Value

A decrease in net worth due to excess costs and expenses over income isLoss

The merchandise that a business keeps on hand for the sale is theInventory

Which of the following represents the dif ference between the total assets and the totalliabilit ies?Owners Equity, Net worth, and Capital, not net income The holder or person owning stock in a corporat ion is theStockholder

At the end of the month a funeral home's assets totaled $50,000, liabilit ies totaled$20,000, revenue for the month totaled $6,000 and the total of the expenses amounted to$4,000. Which statements are true?Owners Equity= $30,000 and Net Income= $2,000 The basic accounting theory is based onDouble Entry

The acronym REID is used whenClosing temporary accounts

The period of t ime required to purchase goods and services and turn them back into cashis called

Normal operating cycle

A ledger is a book ofAccounts

An entry on the debit side of the owners equity indicates that the account has beendecreased

An entry on the credit side of an expense account indicates the account has beenClosed

The book of original entry is inChronological Order

The debt one owes areLiabilit ies

The thing one owns areAssets

Sales minus cost of goods sold equalGross Prof it

The amount of depreciat ion taken during the current f iscal year is properly termedDepreciation expense

The decrease in the value of a f ixed asset is calledDepreciation

The process of recording information to the ledger is calledPosting

The primary purpose of a business isProf it

The only t ime debit side of the revenue account is used is when you makeClosing Entries

When cash is spent in the acquisit ion of an asset the impact on the accounting equation isThe asset cash is credited

An entry on the credit side of a liability account indicates that the account has beenIncreased

Accounts payable is a/anLiability account

Goodwill is classif ied as a/anIntangible asset

Another name for Prof it and Loss Statement isIncome Statement

The amount of income from the sale of funeral services would be shown on which formalf inancial statement?Prof it and Loss Statement

The left side of a standard account is called

Debit Side

Income earned but not received is calledAccrued Income

The totaling of a column of a journal or ledger is calledFooting

The cost of operat ing a business is calledOverhead

Working capital is a measure ofLiquidity

The debit side of the T-account is theLef t Side

A book in which the daily transact ions of a business are f irst writ ten is theJournal

The credit side of the T-account is theRight side

A decrease in owners equity result ing from a business transact ion is a/anExpense

An increase to which the accounts will increase owners equity?Client Fees

A term which is used synonymously with operat ing expenses isOverhead

Accounts receivables are examples ofAssets

Checks returned to the depositor that have been paid by the bank areCanceled checks

A check that has been issued but not presented for payment to a bank is called anOutstanding check

Accounts receivable which are uncollectable areBad debts

A Ledger must containAll Accounts

A loan from a bank secured by property isA mortgage payable

Salary expense is considered to beAn operating expense

Posting is a/anTransf er of f igures f rom the journal to the ledger When delivery revenue is earned on account which accounts increase and decrease?Accounts Receivable increases and revenues increase A special fund to use in disbursing small sums of money is call a/an

Petty cash f und

A journal designed for recording a part icular type of transact ion is known as a/anSpecial journal

If a funeral home sells a funeral service on a 30day account the entry to record thetransact ion would be toDebit accounts receivable and credit sales If a funeral director receives a payment from a client who had purchased a service on a30day account he would make which of the following entries in his journaldebit cash, credit accounts receivable If a funeral director purchases caskets from a casket manufacturer on a 30day account hewould record the transact ion as followsDebit purchases and credit account payable A funeral car is purchased by a funeral home for $30,000. The vehicle will be used for 5 yrsand then replaced. If the est imated salvage value will be $5,000 what will be the amount ofyearly depreciat ion using the straight line method of depreciat ion for computat ion$5,000

David O'Dell is an employee of Mid Cit ies Embalming Services and is paid a salary of $1850per month. He is also paid t ime and a half for all hours worked in excess of 40hrs per week.If he worked 62 hrs last week his gross earnings for the period would be$779.14

John Smith is employed at a local funeral home and is paid on an hourly rate of $5.00 per hr.He is also paid t ime and a half for any hrs worked in excess of 40 hrs per week. For thecurrent pay period he worked a total of 60 hrs. If his FICA tax is 6% and his withholding taxis 10%, what is his take home pay for the week$294.00

Liability accounts are identif ied by the account t it le followed by the wordPayable

Expenses are listed on which of the following reports?Prof it and loss statement and Income statement The report that shows the f inancial condit ion of the business at a point in t ime is called theStatement of Financial condition and balance sheet The accounting equation may be stated asAssets= Liabilit ies and Owners Equity and Assets - Liabilit ies =Owners Equity When you recognize revenue when it is earned and expenses when they are incurred youare operat ing under theAccrual basis of accounting

The account that provides a current or future benefit to the business is properly termedAsset account

Methods of depreciat ion that allow the business to recover the cost early in the life of theasset includeDouble declining balance and sum of the years digits Accounts Payable are exact ly the same as notes payableFalse because accounts payable are less f ormal while notes payable require a written agreement Assets are all things a funeral director owesFalse because assets are all things a f uneral director owns The funeral directors original investment is recorded by debit ing the capital account andcredit ing the cash accountFalse because you would credit capital account and debit cash A prof it and loss statement is a report that shows income,expenses, and the net worth ofa businessFalse because although it shows the income and expenses it does not show net worth. It can show netprof it or net loss but net worth is shown on a later document If the income of a business is less than expenses, the result is a net lossTrue

A trial balance is a report that shows the f inancial condit ion of a business

False, a trial balance is prepared to check the balancing of the accounts. It is not an actual accountingreport The debits and credits in any journal must always be equalTrue

Expenses for an accounting period will appear on the income statementTrue

The two ways in which owners equity can be increased are by revenue and investmentsTrue

Accounts payable will normally have a credit balanceTrue

An income statement shows net income or loss for a given period of t imeTrue

Any act ivity of an enterprise which involves the exchange of values is referred to as atransact iontrue

If the assets of a business total $60,000 and liabilit ies total $30,000, the owners equitywould total $90,000False, the equation is assets- liabilit ies= owners equity, so the right answer would be $30,000. Theequation could also be assets= Liabilit ies+ owners equity so $60,000= $30,000+ $30,000 The amount of wages paid to employees is shown on the balance sheetFalse, this would be an expense so it would be shown on the income statement (Prof it and LossStatement) A ledger is a book of original entryFalse, a ledger is a book of accounts A person to whom a debt is owed is called a debtor

False, they are called creditor Transferring information from the journal to the ledger is called foot ingFalse, f ooting is totaling a column. Transf erring inf ormation f rom the journal to the ledger is called posting All revenue accounts will normally have a credit balanceTrue

The capital account will normally have a credit balanceTrue

The book of original entry in accounting is called the journalTrue

The totaling of a column in a journal or ledger account is called postingFalse,totaling the columns in a journal or ledger is called f ooting. Posting is when you transf er inf ormationf rom the journal to the ledger. Expense means a decrease in owners equityTrue

The left side of a standard account is called the credit sideFalse, the lef t side is the debit while the right side is the credit When cash is spent in the acquisit ion of an asset , the net worth is not affectedTrue

Another term for balance sheet is Prof it and Loss statementFalse, another term f or balance sheet would be statement of f inancial condition. The prof it and lossstatement is also known as the Income statement Accounts Receivable of a business represents all those people to whom the businessowes moneyFalse, that would be accounts payable. Accounts receivable represents all the people whom owe thebusiness money

A cash purchase is recorded in the purchases journalFalse, purchases that occur f requently are recorded in the purchases journal The decrease in the value of f ixed assets due to normal wear and tear is calleddepreciat ionTrue

Accounts payable represents all those people that owe your business moneyFalse, accounts payable is money that the business owes people. Accounts receivable is where people owethe business money The statement of f inancial condit ion is a report that shows assets, liabilit ies, and networth of a businessTrue

Bookkeeping and accounting are synonymous termsFalse, bookkeeping is the recording of f inancial inf ormation while accounting involves analyzing, measuring,interpreting, and reporting inf ormation Transactions in the journal are recorded in chronological orderTrue

The net worth of a business is the dif ference between the assets and the liabilit iesTrue

An entry on the debit side of an asset account records an increase in the assetTrue

Cash paid transact ions are recorded in the cash receipts journalFalse, only transactions where cash is paid out Accounts with creditors are called accounts receivableFalse, this would be accounts payable since accounts receivables the business is the creditors When a worksheet is prepared, it is not necessary for the business to prepare a prof it andloss statement or balance sheet

False, it is necessary to prepare both always A person or concern, usually a bank, that has been ordered to make payment on a check ordraft is called the draweeTrue

A person who signs a check or draft ordering payment to be made is called the drawerTrue

The signature of the payee or other holder place on the back of a check or othernegotiable paper is called the endorsementTrue

Any consecutive twelve month period is called a physical yearFalse, although any consecutive 12 month period is called a f iscal year Another term for a f ixed liability is current liabilityFalse, a f ixed liability is one that will be around f or longer than a year such as a mortgage while a currentliability is one that would be paid within a year The dif ference between gross sales and sales returns and allowances is called net saleTrue

Another term for owners equity is net worthTrue

A writ ten promise of a customer to pay the business a sum of money at a future date iscalled an accounts receivableFalse, a written promise would be notes receivable A writ ten promise to pay a creditor a certain amount in the future is called an accountpayableFalse, a written promise would be notes payable Prepaid expenses (such as insurance) are classif ied as asset accountsTrue

One who has made a sale is called a vendorTrue

One to whom a sale has been made is called vendeeTrue

When a funeral director makes a payment on a funeral coach which was purchased oncredit , he would debit accounts payable and credit cashTrue

Another term for Prof it and Loss statement is income statementTrue

The cash basis of accounting is used primarily by a personal service enterpriseTrue

Recording expenses when they are paid and income when it is received describes the cashbasis of accountingTrue

The dif ference between the two sides of an account is called the account numberFalse, the two sides should be balanced with no dif f erence All expense and revenue accounts are summarized and closed at the end of an accountingperiodTrue

The chart of accounts is usually found at the beginning of the ledgerTrue

The process of determining whether the amount of cash (on hand and in the bank) is theamount that should be there according to the records is called the proving cashTrue

The main purpose of establishing a petty cash fund is to eliminate the necessity of writ ingchecks for small amountsTrue

To establish a petty cash fund you would debit cash and credit petty cashFalse, you would credit cash and debit petty cash A check that a bank refuses to pay is described as a dishonored checkTrue

The most common reason for checks being returned unpaid is not suff icient fundsTrue

Cancelled checks are of no value and should be thrown awayFalse, checks should be kept f or record keeping purposes In a personal service enterprise the chief source of revenue is dervied from servicesrenderedTrue

Accumulated depreciat ion is an example of a contra asset accountTrue

A post closing trial balance is made just prior to post ing the closing entriesFalse, it is made just af ter posting the closing entries Bookkeeping is the recording phase of the accounting processTrue

Proprietorship, net worth, and capital are all synonymous terms for owners equityTrue

If the liabilit ies of a business total $30,000 and the owners equity totals $40,000 the assetswould total $10,000False, the accounting equation is assets=liabilit ies+ owners equity so the assets would be $70,000 The most important formal f inancial statements are the income statement and the trialbalanceFalse, the most important f ormal statements are Balance sheet, income statement, and statement of cashf lows To increase a liability account you would debit that accountFalse, you would credit to show an increase To increase an asset account you would debit that accountTrue

When an expense is incurred,either the assets are reduced or the liabilit ies are increasedTrue

Transactions involving revenue and expenses always cause a change in the owners equityelement of an enterpriseTrue

Revenue and expense accounts are actually temporary owners equity accountsTrue

If the foot ings of an account are n amount the account is said to be balancedTrue

An account is a device for recording the changes in the fundamental accounting elementsTrue

The transferal of data from the journal to the ledger is called postingTrue

The terms overhead and income are synonymousFalse, overhead is the cost to run a business while income is what is lef t over af ter paying liabilit ies Net worth has the same meaning as owners equityTrue

The abbreviat ion for the word debit is DtFalse the abbreviation is Dr

Defer means to delay until a later dateTrue

The process of recording business transact ions in a journal is called foot ingFalse, totaling the columns is called f ooting. Recording business transactions in a journal is called posting Negotiable instruments refer to notes, checks, and other business papers that may betransferred by endorsementTrue

The amount of pay after deductions have been subtracted is called gross payFalse, gross pay is the total a person is paid bef ore deductions have been made FOB is the abbreviat ion for foot ing on balanceFalse, FOB mean f ree on board and is a term used with shipping products The one to whom a sale has been made is called draweeFalse, the drawee is the party on which an order f or the payment of money is drawn. The person to whom asale has been made is the vendee The terms unearned income and deferred income are synonymousTrue

A partnership is a business that is owned by two or more individualsTrue

A f iscal year is any consecutive 12 month period ending on the last day of any monthexcept DecemberTrue

EOM is the abbreviat ion for end of monthTrue

Cost is the amount a f ixed asset will sell for after it no longer has any use in the businessFalse, cost is the amount a business pays f or its goods. The term f or a f ixed asset it will sell af ter is nolonger has any use in the business is salvage value Book value is the cost of forms and records needed for recording transact ionsFalse, book value is the price an item is going f or A bill is a statement indicat ing changes for goods or services renderedTrue

A debtor is a business or individual that owes a debtTrue

The person or company whose name is writ ten on the back of a check is the endorserTrue

FICA is the abbreviat ion for f irst in credit assetsFalse, FICA is the abbreviation is Federal Insurance Contributions Act A bank draft is a check drawn by one bank on another bank in which it has funds depositedTrue

A check drawn by a bank on its own funds and signed by the cashier is known as a cashierscheckTrue

Property of a relat ively permanent nature used in the operat ion of a business and notintended for resale are known as current assetsFalse, these would be known as f ixed assets COD is the abbreviat ion for collect on deliveryTrue

Accrued expenses refers to the expenses incurred and paid during an accounting periodFalse, accrued expenses are expenses not yet paid Adjust ing entries are made at the conclusion of a f iscal period to bring accounts up todateTrue

A cash payments journal is a book of original entry in which only cash receipts are recordedFalse, cash payments journal includes any transaction in which cash is paid out A check register is an expanded trial balance for sort ing and classifying account balancesbefore preparing f inancial statementsFalse, a check register may not contain all accounts. It is used to help classif y and organize payments madeby checks

Accounting Funeral Service CompendCreated by jessie_parker242termsBasic accounting theory is based onThe group of accounts which you debit when increased areThe group of accounts which you credit to increase areWhen a funeral director buys a casket coach on credit he would,The payment of rent by cash is recordedPurchase of office supplies on credit is recorded byA ledger is a book ofAn entry on the debit side of a liability account indicates the account has beenAn entry made on the debit side of the proprietorship account indicates that the account has beenAn entry made on the debit side of an expense account indicates that the account has beenThe beginning balance in the supplies account is $600. During the month an additional $800 worth of supplies were purchased. At the end of the month an inventory of supplies found that only $300 remained on hand. What would be the amount of the adjusting entry for the supplies accountAn entry made on the debit side of an asset account indicates that the account has beenThe things of value owned by a business areAn accounting year ending on some other date than 12/31 is calledA person to whom a debt is owed is called aA plant asset was purchased by the funeral home costing $8000. It has a useful life of 3 yrs and a salvage value of $2000. Using the straight line method of depreciation, what would the yearly amount of depreciation be?What does not appear on the balance sheet?Liabilities are all things a funeral directorA profit and loss statement can be preparedAn entry on the credit side of a revenue account indicates the account has beenWhen cash is spent in the acquisition of an asset the net worth of a business isThe process of recording information in the ledger is calledAccounts Receivable is a/anAnother term for profit and loss statement isThe amount of revenue from the sale of funeral services would be shown on theThe right side of a standard account is called theThe totaling of a column in a journal or ledger account is calledAdvertising expense would be reflected on theThe accounts payable account would be shown on theA group of accounts constitutes aIf the total of the operating expense section of the income statement is smaller than the total of the income section the differenceExpense means a/anWhich of the following accounts would be used to assist the accountant in an adjusting entry?The difference between the two sides of an account is calledThe title of an account which would normally have a credit balance isAn increase in proprietorship as the result of a business transaction is a/anA list of accounts that shows the arrangement of the accounts in the ledger is calledDouble entry bookkeeping means an entry is madeThe proprietorship of a business may be increased byThe proprietorship of a business may be decreased byTo establish a petty cash fund one wouldThe abbreviation for debit isThe abbreviation for credit isA person who signs a check or draft ordering payment to be made is called theA person or concern, usually a bank, that has been ordered to make payment on a check or draft is called theA person or company who will receive payment on a promissory note, check, draft, or money order is called theF.I.C.A refers toProperty of a relatively permanent nature used in the operation of the business and not intended for resale is calledDebts that are not due and payable within a year are calledThe difference between cost of goods sold and their selling price is calledThe excess of current assets over current liabilities is calledA written promise of a customer to pay the business a sum of money at a future date is calledWhich of these does not qualify as a current asset?A synonym for fair wear and tear of a durable asset isA language of business employed to communicate financial information based upon the recording, classification, summarization, and interpretation of financial data is calledAssets= Liabilities + Owners Equity is theThe increase in net worth due to the excess of income over costs and expenses is calledMoney paid for the use of money is calledThe difference between net sales and cost of goods sold isGoods purchased for resale at a profit isA disbursement is aWhat would be the closing entry to close the revenue account?Income received but not yet earned isA paper showing quantity, description, prices of items, total amount of purchase, and terms of payment is a/anOne who has made a sale is called a/anAn estimate of revenue and probable expense for a given period of time is aThe person or business concern to whom a shipment is made is aA distribution of profits of a corporation to its stockholders as declared by the board of director isThe person who orders the bank to make payment of a financial instrument is properly termed a/anThe sole owner of a business is aA fund of currency and coin established for the payment of small amounts of money isThe difference between total sales and sales returns and allowances isThe amount added to the cost of an article to determine the selling price of the article is theA total, written in small pencil figures, under the last entry in a column is theA double line under the last entry on a T-account meansIncreases in the owners equity resulting from business operations is known asThat portion of a plant assets original cost that cannot be depreciated is calledA decrease in net worth due to excess costs and expenses over income isThe merchandise that a business keeps on hand for the sale is theWhich of the following represents the difference between the total assets and the total liabilities?The holder or person owning stock in a corporation is theAt the end of the month a funeral home's assets totaled $50,000, liabilities totaled $20,000, revenue for the month totaled $6,000 and the total of the expenses amounted to $4,000. Which statements are true?The basic accounting theory is based onThe acronym REID is used whenThe period of time required to purchase goods and services and turn them back into cash is calledA ledger is a book ofAn entry on the debit side of the owners equity indicates that the account has beenAn entry on the credit side of an expense account indicates the account has beenThe book of original entry is inThe debt one owes areThe thing one owns areSales minus cost of goods sold equalThe amount of depreciation taken during the current fiscal year is properly termedThe decrease in the value of a fixed asset is calledThe process of recording information to the ledger is calledThe primary purpose of a business isThe only time debit side of the revenue account is used is when you makeWhen cash is spent in the acquisition of an asset the impact on the accounting equation isAn entry on the credit side of a liability account indicates that the account has beenAccounts payable is a/anGoodwill is classified as a/anAnother name for Profit and Loss Statement isThe amount of income from the sale of funeral services would be shown on which formal financial statement?The left side of a standard account is calledIncome earned but not received is calledThe totaling of a column of a journal or ledger is calledThe cost of operating a business is calledWorking capital is a measure ofThe debit side of the T-account is theA book in which the daily transactions of a business are first written is theThe credit side of the T-account is theA decrease in owners equity resulting from a business transaction is a/anAn increase to which the accounts will increase owners equity?A term which is used synonymously with operating expenses isAccounts receivables are examples ofChecks returned to the depositor that have been paid by the bank areA check that has been issued but not presented for payment to a bank is called anAccounts receivable which are uncollectable areA Ledger must containA loan from a bank secured by property isSalary expense is considered to bePosting is a/anWhen delivery revenue is earned on account which accounts increase and decrease?A special fund to use in disbursing small sums of money is call a/anA journal designed for recording a particular type of transaction is known as a/anIf a funeral home sells a funeral service on a 30day account the entry to record the transaction would be toIf a funeral director receives a payment from a client who had purchased a service on a 30day account he would make which of the following entries in his journalIf a funeral director purchases caskets from a casket manufacturer on a 30day account he would record the transaction as followsA funeral car is purchased by a funeral home for $30,000. The vehicle will be used for 5 yrs and then replaced. If the estimated salvage value will be $5,000 what will be the amount of yearly depreciation using the straight line method of depreciation for computationDavid O'Dell is an employee of Mid Cities Embalming Services and is paid a salary of $1850 per month. He is also paid time and a half for all hours worked in excess of 40hrs per week. If he worked 62 hrs last week his gross earnings for the period would beJohn Smith is employed at a local funeral home and is paid on an hourly rate of $5.00 per hr. He is also paid time and a half for any hrs worked in excess of 40 hrs per week. For the current pay period he worked a total of 60 hrs. If his FICA tax is 6% and his withholding tax is 10%, what is his take home pay for the weekLiability accounts are identified by the account title followed by the wordExpenses are listed on which of the following reports?The report that shows the financial condition of the business at a point in time is called theThe accounting equation may be stated asWhen you recognize revenue when it is earned and expenses when they are incurred you are operating under theThe account that provides a current or future benefit to the business is properly termedMethods of depreciation that allow the business to recover the cost early in the life of the asset includeAccounts Payable are exactly the same as notes payableAssets are all things a funeral director owesThe funeral directors original investment is recorded by debiting the capital account and crediting the cash accountA profit and loss statement is a report that shows income,expenses, and the net worth of a businessIf the income of a business is less than expenses, the result is a net lossA trial balance is a report that shows the financial condition of a businessThe debits and credits in any journal must always be equalExpenses for an accounting period will appear on the income statementThe two ways in which owners equity can be increased are by revenue and investmentsAccounts payable will normally have a credit balanceAn income statement shows net income or loss for a given period of timeAny activity of an enterprise which involves the exchange of values is referred to as a transactionIf the assets of a business total $60,000 and liabilities total $30,000, the owners equity would total $90,000The amount of wages paid to employees is shown on the balance sheetA ledger is a book of original entryA person to whom a debt is owed is called a debtorTransferring information from the journal to the ledger is called footingAll revenue accounts will normally have a credit balanceThe capital account will normally have a credit balanceThe book of original entry in accounting is called the journalThe totaling of a column in a journal or ledger account is called postingExpense means a decrease in owners equityThe left side of a standard account is called the credit sideWhen cash is spent in the acquisition of an asset, the net worth is not affectedAnother term for balance sheet is Profit and Loss statementAccounts Receivable of a business represents all those people to whom the business owes moneyA cash purchase is recorded in the purchases journalThe decrease in the value of fixed assets due to normal wear and tear is called depreciationAccounts payable represents all those people that owe your business moneyThe statement of financial condition is a report that shows assets, liabilities, and net worth of a businessBookkeeping and accounting are synonymous termsTransactions in the journal are recorded in chronological orderThe net worth of a business is the difference between the assets and the liabilitiesAn entry on the debit side of an asset account records an increase in the assetCash paid transactions are recorded in the cash receipts journalAccounts with creditors are called accounts receivableWhen a worksheet is prepared, it is not necessary for the business to prepare a profit and loss statement or balance sheetA person or concern, usually a bank, that has been ordered to make payment on a check or draft is called the draweeA person who signs a check or draft ordering payment to be made is called the drawerThe signature of the payee or other holder place on the back of a check or other negotiable paper is called the endorsementAny consecutive twelve month period is called a physical yearAnother term for a fixed liability is current liabilityThe difference between gross sales and sales returns and allowances is called net saleAnother term for owners equity is net worthA written promise of a customer to pay the business a sum of money at a future date is called an accounts receivableA written promise to pay a creditor a certain amount in the future is called an account payablePrepaid expenses (such as insurance) are classified as asset accountsOne who has made a sale is called a vendorOne to whom a sale has been made is called vendeeWhen a funeral director makes a payment on a funeral coach which was purchased on credit, he would debit accounts payable and credit cashAnother term for Profit and Loss statement is income statementThe cash basis of accounting is used primarily by a personal service enterpriseRecording expenses when they are paid and income when it is received describes the cash basis of accountingThe difference between the two sides of an account is called the account numberAll expense and revenue accounts are summarized and closed at the end of an accounting periodThe chart of accounts is usually found at the beginning of the ledgerThe process of determining whether the amount of cash (on hand and in the bank) is the amount that should be there according to the records is called the proving cashThe main purpose of establishing a petty cash fund is to eliminate the necessity of writing checks for small amountsTo establish a petty cash fund you would debit cash and credit petty cashA check that a bank refuses to pay is described as a dishonored checkThe most common reason for checks being returned unpaid is not sufficient fundsCancelled checks are of no value and should be thrown awayIn a personal service enterprise the chief source of revenue is dervied from services renderedAccumulated depreciation is an example of a contra asset accountA post closing trial balance is made just prior to posting the closing entriesBookkeeping is the recording phase of the accounting processProprietorship, net worth, and capital are all synonymous terms for owners equityIf the liabilities of a business total $30,000 and the owners equity totals $40,000 the assets would total $10,000The most important formal financial statements are the income statement and the trial balanceTo increase a liability account you would debit that accountTo increase an asset account you would debit that accountWhen an expense is incurred,either the assets are reduced or the liabilities are increasedTransactions involving revenue and expenses always cause a change in the owners equity element of an enterpriseRevenue and expense accounts are actually temporary owners equity accountsIf the footings of an account are n amount the account is said to be balancedAn account is a device for recording the changes in the fundamental accounting elementsThe transferal of data from the journal to the ledger is called postingThe terms overhead and income are synonymousNet worth has the same meaning as owners equityThe abbreviation for the word debit is DtDefer means to delay until a later dateThe process of recording business transactions in a journal is called footingNegotiable instruments refer to notes, checks, and other business papers that may be transferred by endorsementThe amount of pay after deductions have been subtracted is called gross payFOB is the abbreviation for footing on balanceThe one to whom a sale has been made is called draweeThe terms unearned income and deferred income are synonymousA partnership is a business that is owned by two or more individualsA fiscal year is any consecutive 12 month period ending on the last day of any month except DecemberEOM is the abbreviation for end of monthCost is the amount a fixed asset will sell for after it no longer has any use in the businessBook value is the cost of forms and records needed for recording transactionsA bill is a statement indicating changes for goods or services renderedA debtor is a business or individual that owes a debtThe person or company whose name is written on the back of a check is the endorserFICA is the abbreviation for first in credit assetsA bank draft is a check drawn by one bank on another bank in which it has funds depositedA check drawn by a bank on its own funds and signed by the cashier is known as a cashiers checkProperty of a relatively permanent nature used in the operation of a business and not intended for resale are known as current assetsCOD is the abbreviation for collect on deliveryAccrued expenses refers to the expenses incurred and paid during an accounting periodAdjusting entries are made at the conclusion of a fiscal period to bring accounts up to dateA cash payments journal is a book of original entry in which only cash receipts are recordedA check register is an expanded trial balance for sorting and classifying account balances before preparing financial statements