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Double entry

basic accounting theory is based on

Assets and expenses

the group of accounts which you debit when increased are

Liabilities and capital

the group of accounts which you credit when increased are

Debit casket coach and credit accounts payable

when a funeral director buys a casket coach on credit, he would

Debit rent expense and credit cash

the payment of rent by cash is recorded

debit office supplies and credit accounts payable

purchase of office supplies on credit is recorded by

Accounts

a ledger is a book of

Decreased

an entry on the debit side of a liability account indicates the account has been

Decreased

an entry made on the debit side of the proprietorship account indicates that the account has been

Increased

an entry made on the debit side of an expense account indicates that the account has been

$1100

the beginning balance in the supplies account is $600. During the month an additional $800 worth of supplies were purchased. At the end of the month, an inventory of the supplies found that only $300 remained on hand. What would be the amount of the adjusting entry for the supplies account?

Increased

an entry made on the debit side of an asset account indicates that the account has been

Assets

the things of value owned by a business are

Fiscal year

an accounting year ending on some date other than December 31st is called

Creditor

a person who whom a debt is owed is called a

$2,000

A plant asset was purchased by the funeral home costing $8,000. It has a useful life of 3 years and a salvage value of $2,000. Using the straightline method of depreciation, what would be the yearly amount of depreciation?

Expenses

which of these does not appear on the balance sheet?

Owes

liabilities are all things a funeral director

At any time

a profit and loss statement can be prepared

Increased

an entry on the credit side of a revenue account indicates the account has been

Not affected

when cash is spent in the acquisition of an asset the net worth of a business is

Posting

the process of recording information in the ledger is called

Asset account

accounts receivable is a/an

Income statement

another term for profit and loss statement is

Profit and Loss Statement

the amount of revenue from the sale of funeral services would be shown on the

Credit side

the right side of a standard account is called the

Footing

the totaling of a column in a journal or ledger account is called

Income statement

advertising expense wold be reflected on the

Balance sheet

the accounts payable account would be shown on the

Ledger

a group of accounts constitutes a/an

Net profit

if the total of the operating expenses section of the income statement is smaller than the total of the income section, the difference is

Decrease in owner's equity

expense means a/an

Accumulated depreciation

which of the following accounts would be used to assist the accountant in an an adjusting entry involving depreciation

Account balance

the difference between the two sides of an account is called the

Accounts payable

The title of an account which would normally have a credit balance is

Income

an increase in proprietorship as the result of a business transaction is a/an

Chart of Accounts

a list of accounts that shows the arrangement of the accounts in the ledger is called

debit and credit

double entry bookkeeping means an entry is made as a/an

Net income and investment of assets in the business by the owner

the proprietorship of a business may be increased by

Expenses and withdrawals of assets from the business by the owner

the proprietorship of a business may be decreased by

Debit petty cash and credit cash

to establish a petty cash fund, one would

Dr.

the abbreviation for debit is

Cr.

the abbreviation for credit is

Drawer

a person who signs a check or draft ordering payment to be made is called the

Drawee

a person or concern, usually a bank, that has been ordered to make payment on a check or draft is called the

Payee

a person or company who will receive payment on a promissory note, check, draft or money order is called the

Social security

F.I.C.A refers to

Fixed asset

property of a relatively permanent nature used in the operation of a business and not intended for resale is called

Fixed liabilities

debts that are not due and payable within a year are called

Gross profit

the difference between cost of goods sold and their selling price is called

Working capital

the excess of current assets over current liabilities is called

Note receivable

a written promise of a customer to pay the business a sum of money at a future date is called a/an

Land

which of these does not qualify as a current asset?

Depreciation

a synonym for fair wear and tear of a durable asset is

Accounting

a language of business employed to communicate financial information based upon the recording, classification, summarization, and interpretation of financial data is called

Accounting equation

assets = liabilities + owner's equity is the

Profit

the increase in net worth due to the excess of income over costs and expenses is called

Interest

money paid for the use of money is called

Gross margin

the difference between net sales and cost of goods sold

Merchandise

goods purchased for resale at a profit

Payment

a disbursement is a

Debit revenue, credit expense and revenue summary

what would be the closing entry to close the revenue account?

Deferred income

income received but not yet earned is

Invoice

a paper showing quantity, description, prices of items, total amount of purchase, and terms of payment is a/an

Vendor

one who has made a sale is called a/an

Budget

an estimate of revenue and probably expense for a given period of time is a

Consignee

the person or business concern to whom a shipment is made is a

Dividend

a distribution of profits of a corporation to its stockholders as declared by the board of directors is

Endorser

the person who orders the bank to make payment of a financial instrument is properly termed a/an

Proprietor

the sole owner of a business is a

Petty cash

a fund of currency and coin established for the payment of small amounts of money is

Net sales

the difference between total sales and sales returns and allowances is

Mark-up

the amount added to the cost of an article to determine the selling price of that article is the

Footing

a total, written in small pencil figures, under the last entry in a column is the

The entry is complete

a double line under the last entry on a T-account means

Income

increases in the owner's equity resulting from business operations is known as

Scrap value

that portion of a plant assets original cost that cannot be depreciated is called

Loss

a decrease in net worth due to excess of costs and expenses over income is

Inventory

the merchandise that a business keeps on hand for sale is the

Owner's equity, net worth, capital

which of the following represents the difference between the total assets and the total liabilities

Stockholder

the holder or person owning stock in a corporation is the

Owner's equity = $30,000, net income = $2,000

at the end of the month, a funeral home's assets totaled $50,000; the liabilities totaled $20,000; revenue for the month totaled $6,000; and the total of the expenses amounted to $4,000.

Double entry

the basic accounting theory is based on

Closing temporary accounts

the acronym REID is used when

The normal operating cycle

the period of time required to purchse goods and services and turn them back into cash is called

Accounts

a ledger is a book of

Decreased

an entry on the debit side of the owners equity indicates that the account has been

Closed

an entry on the credit side of an expense account indicates the account has been

Chronological order

the book of original entry is in

Liabilities

the debts one owes are

Assets

the things one owns are

Gross profit

sales minus cost of goods sold equals

Depreciation expense

the amount of depreciation taken during the current fiscal year is properly termed

Depreciation

the decrease in the value of a fixed asset is called

Posting

the process of recording information in the ledger is called

Profit

the primary purpose of a business is

Closing entries

the only time the debit side of the revenue account is used is when you make

The asset cash is credited

when cash is spent in the acquisition of an asset the impact on the accounting equation is

Increased

an entry on the credit side of a liability account indicates that the account has been

Liability account

accounts payable is a/an

Intangible asset

Goodwill is classified as a/an

Income statement

Another name for Profit and Loss Statement is

Profit and Loss Statement

The amount of income from the sale of funeral services would be shown on which formal financial statement?

Debit side

the left side of a standard account is called the

Deferred income

Income earned but not received is called.

Footing

the totaling of a column of a journal or ledger is called

Overhead

the cost of operating a business is called

Liquidity

Working capital is a measure of

Left side

The debit side of the T-account is the

Journal

A book in which the daily transactions of a business are first written is the

Right side

The credit side of a T-account is the

Expense

A decrease in owners equity resulting from a business transaction is a/an

Client Fees

An increase to which of the accounts will increase owner's equity?

Overhead

A term which is used synonymously with operating expenses is

Assets

Accounts receivable are examples of

Canceled checks

Checks returned to the depositor that have been paid by the bank are

Outstanding check

A check that has been issued but not presented for payment to a bank is called a

Bad debts

Accounts receivable which are uncollectable are

All accounts

A ledger must contain

A mortgage payable

A loan from a bank secured by property is

An operating expense

Salary expense is considered to be

Transfer of figures from the journal to the ledger

Posting is a/an

Accounts receivable increases; revenues increases

When delivery revenue is earned on account, which accounts increase and decrease?

Petty cash fund

A special fund for use in disbursing small sums of money is called a/an

Special journal

A journal designed for recording a particular type of transaction is known as a/an

Debit accounts receivable; credit sales

If a funeral home sells a funeral service on a 30 day account, the entry to record the transaction would be to

Debit cash; credit accounts receivable

If a funeral director receives payment from a client who had purchased a service on a 30 day account, he would make which of the following entries in his journal

Debit purchases; credit accounts receivable

If a funeral director purchases caskets from a casket manufacturer on a 30 day account, he would record the transaction as follows

$5,000

A funeral car is purchased by a funeral home for $30,000. The vehicle will be used for five years and then replaced. If the estimated salvage value will be $5,000, what will be the amount of yearly depreciation using the straightline method of depreciation for computation?

$779.14

David O'Dell is an employee of Mid-Cities Embalming Service and is paid a salary of $1,850 per month. He is also paid time and a half for all hours worked in excess of forty hours per week. If Mr. O'Dell worked 62 hours last week, his gross earnings for the period would be.

$294.00

John Smith is employed at a local funeral home and is paid on an hourly rate of $5.00 per hour. He is also paid time and a half for any hours worked in excess of 40 hours per week. For the current pay period, he worked a total of 60 hours. If his FICA tax is 6%, and his withholding tax is 10%, what is his take-home pay for the week?

Payable

Liability accounts are identified by the account title followed by the word

Profit and Loss Statement; Income Statement

Expenses are listed on which of the following reports?

Statement of Financial Condition; Balance Sheet

The report that shows the financial condition of the business at a point in time is called the

assets = liabilities + owners equity; assets - liabilities = owners equity

The accounting equation may be stated as

Accrual basis of accounting

When you recognize revenue when it is earned, and expenses when they are incurred you are operating under the

An asset account

The account that provides a current or future benefit to the business is properly termed

Double declining balance; Sum of the years digits

Methods of depreciation that allow the business to recover the cost early in the life of the asset include

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