5 Written Questions

1. a payment.
2. accounts utilized to accumulated income, expenses, and owner's withdrawals for one accounting period only
3. a form used to reflect payments from the petty cash fund
4. items which are considered to be assets when acquired, but which will become expenses when consumed or expired.
5. liabilities that are not due and payable within one year.

5 Matching Questions

1. Accounting -
2. Transposition error -
3. Gross profit percentage -
4. Long-term assets - see Fixed assets
5. Other expenses -

1. a expenses incurred that are not the direct result of regular trading activities of a business.
2. b ...
3. c a language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data.
4. d gross profit divided by net sales.
5. e an amount written with the digits in incorrect order.

5 Multiple Choice Questions

1. one who is involved in the process of recording financial information in a prescribed manner.
   1. Book value (undepreciated cost) -
   2. Balance sheet comparative forms -
   3. Bookkeeping -
   4. Bookkeeper (information processor) -
2. a specific number of days during which a discount is available if the account is paid.
   1. Discount period -
   2. Current ratio -
   3. Accounting -
   4. Disbursement -
3. ...
   1. Deposit slip (deposit ticket) -
   2. Notes receivable -
   3. Information processor - see Bookkeeper
   4. Depreciation expense -
4. a decrease in assets, other than withdrawals by the owner, which result from efforts to produce revenues.
   1. Employee -
   2. Debit -
   3. Ledger -
   4. Expense -
5. express the major items in the balance sheet as a percent of the total assets and compare with previous fiscal Periods.
   1. Balance sheet common-size statements/percentage method -
   2. Gross profit percentage -
   3. Bank statement reconciliation - .
   4. Uncollectible accounts expense -

5 True/False Questions

1. Net purchases - . → the difference between gross profit and expenses when expenses are larger.

   True        False

2. Straight-line depreciation - → a method in which the depreciable cost basis (original cost basis less salvage value) of an asset is apportioned equally over its estimated useful life expressed in terms of month or years.

   True        False

3. Profit margin - → net income divided by net sales.

   True        False

4. Profit and loss statement - see Income statement → an itemized listing prepared by the bank of additions to the subtractions from a depositor's account.

   True        False

5. Accounts receivable - → an unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.

   True        False