The series of accounting activities included in recording financial information for a fiscal period is known as the accounting cycle.

An amount owed by a business is known as a receivable.

A business must earn a net income to continue in existence is an application of the Going Concern Concept.

A purchases journal is normally used to record cash purchases.

Accounts Receivable is a general ledger control account that summarizes the total amount owed to all vendors.

A business prepares a balance sheet to report information about revenues and expenses for a period of time.

A balance sheet reports a business's financial position as of a specific date.

A form listing and describing the goods sold, the quantity, and the price is called a sales invoice.

The owner's capital account is a liability account.

A sale on account is a transaction that increases accounts receivable and increases revenues.

Recording revenue from business activities and expenses associated with earning that revenue in the same accounting period is an application of the matching concept.

The major sections of an income statement are assets, liabilities, and owner's equity.

Recording the actual amount paid for merchandise or other items bought is an application of the historical cost accounting concept.

The account Sales Tax Payable, the amount of sales tax a business collects and owes, is an asset account.

A debit to an account is always an increase.

A payor is the person or business to whom a check is made payable to.

Book depreciation expenses the cost of an asset over the asset’s useful life.

A balance sheet presents the final balances of all asset, liability, and owner’s equity accounts as of a specified date.

An accounting record used for initially recording accounting information in a chronological order is called the general ledger.

Recording errors never occur when using the double entry accounting system

A balance sheet shows how a business is doing over a specific period of time.

A business that performs an activity for a fee is a service type of business.

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

Employers in many states are required to withhold state, city, or county income tax from employee earnings.

The employer social security tax rate is not the same as the employee social security tax rate.

A purchase invoice is the source document for journalizing a sales on account transaction.

A sale for which cash will be received at a later date is a called a sale on account.

The amount remaining after the value of all liabilities is subtracted from the value of all assets is called profit.

Collecting cash from a sale on account does not affect owner's equity.

Adjusting entries are recorded in the general journal.