Bookkeeping(Quick Test #1)

1. The listing of the accounts available for recording transactions is the __________ of accounts.

2. The accounts containing entries are housed in the general __________.

3. Accounts such as Cash, Accounts Receivable, and Equipment are examples of __________ accounts which will be reported on the balance sheet.

4. Notes Payable, Accounts Payable, and Wages Payable are examples of __________ accounts which will be reported on the balance sheet.

5. Sales, Rent Expense, and Interest Expense are examples of accounts that will be reported on this financial statement: __________ __________.

6. The minimum number of general ledger accounts affected by a transaction is __________.

7. The word used by bookkeepers to indicate the left side of an account is __________.

8. The word used by bookkeepers to indicate the right side of an account is __________.

9. Recording a debit and credit amount for every transaction is referred to as __________-entry bookkeeping or accounting.

10. The normal balance for an asset account is a __________ balance.

11. When a check is written by a company, the company’s general ledger account Cash will need a __________ entry.

12. When money is received from a customer, the amount is entered as a __________ to the Cash account.

13. The amount owed on a bank loan will appear as a __________ balance in the account Notes Payable.

14. When a company makes a principal payment on its bank loan, a __________ should be recorded in its account Notes Payable.

15. The bookkeeping equation or accounting equation is
Assets = __________ + Owner’s (or Stockholders’) Equity

16. When a sale of merchandise occurs, the Sales account will be __________.

17. The normal entry to the Sales account also has the effect of __________ owner’s equity.

18. When the monthly rent is paid on the first day of the month, there will be a __________ entry to Rent Expense.

19. When a company purchases goods with credit terms of net 30 days, Accounts Payable will be __________.

20. The general ledger accounts for revenues, expenses, gains, and losses could be described as __________ accounts.

21. When interest is earned by a company, the account Interest Income or Interest Revenue should be __________.

22. When an expense is recorded, it also has the effect of __________ owner’s equity.

23. When a sole proprietor withdraws money from his business for personal use, the sole proprietor’s drawing account will be __________.

24. When M. Smith invests an additional $1,000 in her sole proprietorship, the account M. Smith, Capital will be __________ for $1,000.

25. Nearly all balance sheet accounts are __________ accounts.

26. Income statement accounts are __________ accounts.

27. At the end of each accounting year, the owner’s drawing account is closed directly to the owner’s capital account.

28. The unexpired portion of a prepaid property insurance premium should be reported as __________.

29. Which type of adjusting entry is involved with a prepaid expense account?

30. Which type of adjusting entry is used to record interest expense that has occurred but has not been recorded?

31. If a company’s employees are paid weekly for the hourly wages they earned in the previous week, __________ adjusting entry will be needed prior to issuing the company’s monthly financial statement.

32. The amount of prepaid insurance that has expired in the current accounting period should be reported on which financial statement?

33. The adjusting entry for depreciation includes a debit to Depreciation Expense and a credit to __________ __________.

34. Adjusting entries are necessary in order to comply with which accounting principle?

35. The significant use of electricity and natural gas will require a company to prepare __________ adjusting entry prior to issuing financial statements.

36. A common characteristic of adjusting entries is that a balance sheet account and an __________ __________ account are involved.

37. Adjusting entries are likely to be first recorded in the general __________.

38. The general ledger account balances for deferred revenues and customer deposits are likely to be __________ balances.

39. Deferred revenues and customer deposits will likely be reported in the current __________ section of the balance sheet.

40. The 3-way match done for accounts payable involves 1) the vendor’s invoice, 2) the company’s __________ __________, and 3) the company’s receiving report.

41. A company requires that its bank statement be reconciled by someone other than
the person writing the checks. This is an example of the __________ of duties, an important concept of internal control.

42. The checks written by a company that have not yet cleared its bank account are known as __________ checks.

43. The service charge appearing on a company’s bank statement will require a __________ entry to the company’s general ledger Cash account.

44. In a bank reconciliation, the deposits in transit will be an adjustment to the balance per the __________.

45. Sales with credit terms of net 30 days will increase two account balances: Sales and Accounts Receivable.

46. When goods are sold with credit terms of net 30 days, the seller is typically transferring ownership of the goods to the buyer 30 days prior to collecting the money from the buyer.

47. The report that sorts the accounts receivable into categories such as current, 1-30 days past due, 31-60 days past due, and so on is the __________ of accounts receivable.

48. The contra asset account, __________ for Doubtful Accounts, reports the estimated amount of Accounts Receivable that may not turn to cash.

49. When goods are sold with credit terms of net 30 days, the selling company will likely have __________ claim until the buyer pays the amount owed.

50. The requirements for reporting Bad Debts Expense on the company’s financial statements are the same as the requirements for reporting the Bad Debts Expense on the company’s U.S. income tax return.