Accounting Terms and Concepts, Quizzes of Accounting

Download Accounting Terms and Concepts and more Quizzes Accounting in PDF only on Docsity! TERM 1 a revenue DEFINITION 1 the type of account with a normal credit balance is TERM 2 prepaid insurance DEFINITION 2 which of the following items represents a deferral? TERM 3 $10,300 DEFINITION 3 what is the maturity value of a 90-day, 12% note for $10,000? TERM 4 trial balance DEFINITION 4 the form listing the titles and balances of the accounts in the ledger on a given date is the TERM 5 November 3 DEFINITION 5 what is the due date of a $12,000, 90-day, 8% note receivable dated august 5? TERM 6 internal controls DEFINITION 6 the policies and procedures used by management to protect assets from misuse, ensure accurate business information, and ensure compliance with laws and regulations are called TERM 7 $715 DEFINITION 7 what is the cost of the 35 units on hand at the end of the period as determined under the perpetual inventory system by the LIFO method? TERM 8 debit the owner's capital account, credit the drawing account DEFINITION 8 which of the following entries closes the owner's drawing account at the end of the period? TERM 9 gross profit DEFINITION 9 on a multiple step income statement, the excess of net sales over the cost of merchandise sold is called TERM 10 subsidiary ledger DEFINITION 10 when there are a large number if individual accounts with a common characteristic, it is common to place them in a separate ledger called TERM 21 assets DEFINITION 21 the resources owned by a business are called TERM 22 debit depreciation expense $2000; credit acc. dep. $2000 DEFINITION 22 if the estimated amount of depreciation on equipment for a period $2000 the adjusting entry to record depreciation would be TERM 23 interest expense DEFINITION 23 which of the following expenses would normally be classified as other expense on a multiple step income statement? TERM 24 $7500 net income DEFINITION 24 if revenue was $45000, expenses were $37500, and the owner's withdrawals were $10000, the amount of net income or net loss would be TERM 25 $10 DEFINITION 25 if merchandise is sold on account to a customer for $1000, terms FOB shipping point 1/10, n/30, and the seller prepays $50 in transportation costs, the amount of the discount for early payment would be TERM 26 $6000 DEFINITION 26 at the end of the fiscal year, before the accounts are adjusted, accounts receivable has a balance of $200000 and allowance for doubtful accounts has a credit balance of $2500. if the estimate of uncollectible accounts determined by aging the receivables is $8500, the amount of bad debt expense is TERM 27 FIFO DEFINITION 27 if merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is TERM 28 $8500 DEFINITION 28 if the equipment account has a balance of $22500 and its accumulated depreciation account has a balance of $14000, the book value of the equipment would be TERM 29 corporation DEFINITION 29 a profit making business operating as a separate legal entity and in which ownership is divided into shares of stock is known as a TERM 30 both answers DEFINITION 30 journal entries based on the bank reconciliation are required for TERM 31 a debit to cash and a credit to accounts receivable DEFINITION 31 the receipt of cash from customers in payment of their accounts would be recorded by TERM 32 accumulated depreciation DEFINITION 32 which of the following accounts would not be closed to the income summary account at the end of a period TERM 33 debit supplies expense $1300; credit supplies $1300 DEFINITION 33 if the supplies account, before adjustment on may 31, indicated a balance of $2250, and supplies on hand at may 31 totaled $950, the adjusting entry would be TERM 34 fees earned DEFINITION 34 a debit balance in which of the following accounts would indicate a likely error?