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138 terms

Accounting

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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