The capital account is an owner's equity account.

A business that charges fees is a service type of business.

The petty cash slips are the source documents used to make the entry to replenish the petty cash fund.

Only revenue and expense accounts are used to prepare an income statement.

A journal lists all the activity during a period for an account.

Most banks will accept post dated checks.

If the Income Summary Account debit balance is greater than the credit balance, a profit has occurred.

A Balance Sheet is a formal representation of the Accounting Equation.

A sales invoice with credit terms is a source document for recording an entry in what journal ?

Employers are required to remit payments to the government for taxes withheld from employee's earnings.

The employer's social security tax rate is NOT the same as the employee's tax rate.

Purchases on account are recorded in what journal ?

In addition to withholding amounts for federal income tax from employee's earnings, many states also require amounts to be withheld for state income tax.

Expense accounts are closed at the end of a period by debiting the Expense Account and crediting the Income Summary Account.

Debits and Credits are often abbreviated as Dr and Cr.

A sole proprietorship is what is known as a flow-thru type of entity.

An Owner's Drawing Account is increased with a credit.

A contract to provide future services is immediately recorded in the Sales Journal.

Investors and creditors of a business are two groups who do NOT need financial information.

The Management of a business is a major external user of a business's financial information.

Which of the following events is NOT an accounting transaction ?

The time period rule (assumption) is also known as the matching principle.

The matching principle requires that assets be matched with liabilities.

A fiscal year is the time period January 1 thru December 31.

A T-Account is a way of representing the structure of an account.