Question 1

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

Accepted Answer

A)   Income Statement Debit column.
B)   Income Statement Credit column.
C)   Balance Sheet Debit column.
D)   Balance Sheet Credit column.E) None of the above
F) A) and D)

Question 2

Adjusting entries must be posted to the general ledger accounts.

Accepted Answer

A) True 
 B)False

Question 3

Assets taken out of a business for the personal use of the owner are called

Accepted Answer

A)   net income.
B)   net loss.
C)   investments.
D)   withdrawals.E) B) and D)
F) None of the above

Question 4

Select the one term that best fits each definition
-Accounts used to accumulate information from one fiscal period to the next.

Accepted Answer

A)   accounting system
B)   accrual basis of accounting
C)   adjusting entries
D)   balance sheet
E)   chart of accountsF)  closing entriesG)  creditorH)  expenseI)  postingJ)  income statementK)  permanent accountsL)  revenueM)  T accountN)  temporary accountsO)  trial balanceP) A) and I)
Q) I) and M)

Question 5

The first digit in the account number 410 means that the account is in the

Accepted Answer

A)   Assets division of the general ledger.
B)   Liabilities division of the general ledger.
C)   Revenue division of the general ledger.
D)   Expenses division of the general ledger.E) None of the above
F) A) and B)

Question 6

A transaction for the sale of goods or services results in a decrease in owner's equity.

Accepted Answer

A) True 
 B)False

Question 7

Asset accounts include Cash, Prepaid Insurance, and

Accepted Answer

A)   Accounts Payable.
B)   Accounts Receivable.
C)   Sales.
D)   Utilities Expense.E) B) and C)
F) B) and D)

Question 8

Select the one term that best fits each definition
-The cost of goods or services used to operate a business.

Accepted Answer

A)   accounting system
B)   accrual basis of accounting
C)   adjusting entries
D)   balance sheet
E)   chart of accountsF)  closing entriesG)  creditorH)  expenseI)  postingJ)  income statementK)  permanent accountsL)  revenueM)  T accountN)  temporary accountsO)  trial balanceP) G) and L)
Q) B) and C)

Question 9

Select the one term that best fits each definition
-A financial statement showing the revenue and expenses for a fiscal period.

Accepted Answer

A)   accounting system
B)   accrual basis of accounting
C)   adjusting entries
D)   balance sheet
E)   chart of accountsF)  closing entriesG)  creditorH)  expenseI)  postingJ)  income statementK)  permanent accountsL)  revenueM)  T accountN)  temporary accountsO)  trial balanceP) B) and H)
Q) E) and I)

Question 10

If the previous account balance and the current entry posted to an account are both credits, the new account balance is a credit.

Accepted Answer

A) True 
 B)False

Question 11

Select the one term that best fits each definition
-A financial statement that reports assets, liabilities, and owner's equity on a specific date.

Accepted Answer

A)   accounting system
B)   accrual basis of accounting
C)   adjusting entries
D)   balance sheet
E)   chart of accountsF)  closing entriesG)  creditorH)  expenseI)  postingJ)  income statementK)  permanent accountsL)  revenueM)  T accountN)  temporary accountsO)  trial balanceP) J) and L)
Q) A) and C)

Question 12

A transaction recorded in a journal is not considered a permanent record.

Accepted Answer

A) True 
 B)False

Question 13

If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is

Accepted Answer

A)   increased.
B)   decreased.
C)   unaffected.
D)   correct.E) B) and C)
F) A) and D)

Question 14

Select the one term that best fits each definition
-A planned process designed to compile financial data and summarize the results in accounting records and reports.

Accepted Answer

A)   accounting system
B)   accrual basis of accounting
C)   adjusting entries
D)   balance sheet
E)   chart of accountsF)  closing entriesG)  creditorH)  expenseI)  postingJ)  income statementK)  permanent accountsL)  revenueM)  T accountN)  temporary accountsO)  trial balanceP) C) and I)
Q) H) and I)

Question 15

The journal entry to close Income Summary when there is a net income is

Accepted Answer

A)   debit Sales; credit Income Summary.
B)   debit owner's capital; credit Income Summary.
C)   debit Income Summary; credit Sales.
D)   debit Income Summary; credit owner's capital.E) C) and D)
F) All of the above

Question 16

The normal balance side of any expense account is

Accepted Answer

A)   the debit side.
B)   the credit side.
C)   the right side.
D)   either the debit side or credit side.E) B) and C)
F) A) and B)

Question 17

Income Summary is a(n)

Accepted Answer

A)   asset account.
B)   liability account.
C)   temporary account.
D)   permanent account.E) All of the above
F) B) and C)

Question 18

The source document for an electronic funds transfer is a memorandum.

Accepted Answer

A) True 
 B)False

Exam 25: Service Business Organized As a Proprietorship

Asset accounts include Cash, Prepaid Insurance, and

Correct Answer
verified

Select the one term that best fits each definition -The cost of goods or services used to operate a business.

Correct Answer
verified

A transaction for the sale of goods or services results in a decrease in owner's equity.

Correct Answer
verified

Adjusting entries must be posted to the general ledger accounts.

Correct Answer
verified

The first digit in the account number 410 means that the account is in the

Correct Answer
verified

If the previous account balance and the current entry posted to an account are both credits, the new account balance is a credit.

Correct Answer
verified

The journal entry to close Income Summary when there is a net income is

Correct Answer
verified

Select the one term that best fits each definition -A financial statement that reports assets, liabilities, and owner's equity on a specific date.

Correct Answer
verified

The normal balance side of any expense account is

Correct Answer
verified

Select the one term that best fits each definition -A planned process designed to compile financial data and summarize the results in accounting records and reports.

Correct Answer
verified

Income Summary is a(n)

Correct Answer
verified

If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is

Correct Answer
verified

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

Correct Answer
verified

A transaction recorded in a journal is not considered a permanent record.

Correct Answer
verified

Select the one term that best fits each definition -Accounts used to accumulate information from one fiscal period to the next.

Correct Answer
verified

Select the one term that best fits each definition -A financial statement showing the revenue and expenses for a fiscal period.

Correct Answer
verified

The source document for an electronic funds transfer is a memorandum.

Correct Answer
verified

Assets taken out of a business for the personal use of the owner are called

Correct Answer
verified

Exam 25: Service Business Organized As a Proprietorship

Asset accounts include Cash, Prepaid Insurance, and

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -The cost of goods or services used to operate a business.

Correct AnswerverifiedShow Answer

A transaction for the sale of goods or services results in a decrease in owner's equity.

Correct AnswerverifiedShow Answer

Adjusting entries must be posted to the general ledger accounts.

Correct AnswerverifiedShow Answer

The first digit in the account number 410 means that the account is in the

Correct AnswerverifiedShow Answer

If the previous account balance and the current entry posted to an account are both credits, the new account balance is a credit.

Correct AnswerverifiedShow Answer

The journal entry to close Income Summary when there is a net income is

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -A financial statement that reports assets, liabilities, and owner's equity on a specific date.

Correct AnswerverifiedShow Answer

The normal balance side of any expense account is

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -A planned process designed to compile financial data and summarize the results in accounting records and reports.

Correct AnswerverifiedShow Answer

Income Summary is a(n)

Correct AnswerverifiedShow Answer

If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A transaction recorded in a journal is not considered a permanent record.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -Accounts used to accumulate information from one fiscal period to the next.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -A financial statement showing the revenue and expenses for a fiscal period.

Correct AnswerverifiedShow Answer

The source document for an electronic funds transfer is a memorandum.

Correct AnswerverifiedShow Answer

Assets taken out of a business for the personal use of the owner are called

Correct AnswerverifiedShow Answer

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