The art of analyzing, recording, summarizing, reporting, reviewing, and interpreting financial information is called -
- accounting
- bookkeeping
- keeping-the-books
- all of the listed answers are correct
The effect of a transaction on the accounting equation may require -
- all of the listed answers are correct
- a decrease to both sides of the equation
- an increase and decrease on the same side of the equation
- an increase to both sides of the equation
A transaction that increases accounts receivable and increases owner's equity is -
- revenue
- expense
- withdrawal
- none of the listed answers are correct
A transaction that decreases cash and decreases owner's equity is -
- expense
- revenue
- equipment purchase
- none of the listed answers are correct
The amount paid for an insurance policy that has a term of one year is normally first recorded as -
- an asset
- an expense
- revenue
- a withdrawal
The account of a corporation that is most similar to the drawing account of a sole proprietorship is -
- dividends
- wages
- bonuses
- travel advances
A report prepared and used as an aid for preparing the formal financial statements is called -
- a trial balance
- a budget
- a cash projection
- a financial statement analysis
The petty cash account is classified as -
- an asset account
- a liability account
- an expense account
- a revenue account
A source document used to substantiate individual petty cash expenditures is -
- a petty cash voucher
- a petty cash check
- a petty cash deposit slip
- none of the listed answers are correct
The form prepared by a customer for returns and allowances is called a -
- debit memo
- credit memo
- returns and allowances memo
- purchase memo
A special journal only used to record sales on account is -
- none of the listed answers are correct
- a cash receipts journal
- a cash journal
- a general journal
Which income statement accounts start a new year (period) with the prior period's ending balance ?
- none of the listed answers are correct
- revenue accounts
- expense accounts
- cost accounts
The loss resulting from an uncollectible account is classified as -
- an expense
- a liability
- an asset
- a capital adjustment
An entry to writeoff an uncollectible customer account is recorded in -
- the general journal
- the sales journal
- the sales returns and allowances journal
- the cash journal
The original cost of an asset less accumulated depreciation is called -
- book value
- market value
- net realizable value
- none of the listed answers are correct
An example of a tax or expense imposed on businesses by a governmental unit is ?
- all of the listed answers are correct
- business license
- property tax
- franchise and excise tax
A key to the success of a business is -
- all of the listed answers are correct
- earning profits
- cash control
- good management
The inventory method that requires a physical count in order to determine the cost of the merchandise sold is -
- the periodic method
- the perpetual method
- none of the listed methods require a physical count
- the gross profit method
Accrued interest expense is classified as -
- a liability
- an asset
- capital
- revenue
An example of a long term liability is -
- mortgage payable
- interest payable
- accounts payable
- wages payable