An accounting period that begins on July 1 and ends on June 30 is a calendar-year accounting period.

The type of source document prepared depends upon the type of the transaction.

Every amount posted will either increase or decrease the balance of a ledger account.

The income statement represents the basic accounting equation.

Net income or net loss is the difference between total revenue and total expenses over a specific period of time.

After the closing entries have been posted, the balance in the capital account(s) reflect the net income or net loss and the withdrawals and additional investments for the period.

The sales journal is an all-purpose journal used for recording unusual and infrequent types of business transactions.

Journalizing is a term often used to describe initially recording a business transaction.

A compound entry is a journal entry with two or more debits and/or two or more credits.

Only permanent accounts and their balances are listed on the post-closing trial balance.

An example of an internal control is the daily deposit of cash receipts in the bank.

The FICA tax has no maximum taxable amount.

A Form W-4 lists the marital status and number of exemptions claimed by the employee.

Amounts deducted from employees' earnings and held for payment by the employer are liabilities of the business.

The payroll journal (register) contains detail information about employees' earnings and deductions during a pay period.

The account Salaries and Wages Expense has a normal credit balance.

A bank's itemized record of all the transactions occurring in a depositor's account over a given period is is called a bank statement.

The person who signs a check is the payee.

Outstanding checks are deposits that have been made and recorded in the checkbook but that do not appear on the bank statement.

The employee's earning record is an individual payroll record kept for each employee.