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Accounting II EOC
Terms in this set (70)
A business that purchases and sells goods is called a(n) ____.
An organization with the legal rights of a person and that may be owned by many persons is known as a(n) ____.
The first step in recording the collection of an account that has been written off is to ____.
reopen the account receivable
The percentage relationship between one financial statement item and the total that includes that item is a(n) ____.
A value assigned to a share of stock and printed on the stock certificate is the ____.
Depreciation is recorded in the accounting records of the business through a(n) ____.
A ledger that contains all accounts needed to prepare financial statements is called a
A financial statement that shows changes in a corporation's ownership for a fiscal period is the ____.
statement of stockholders' equity
A written and signed promise to pay a sum of money at a specified time is called a ____
The group of persons elected by the stockholders to manage a corporation is called a(n) ____.
board of directors
Recording all sales at the time of sale, regardless of when payment is made, is an application of the accounting concept ____.
Realization of Revenue
The second closing entry is recorded for income statement accounts with debit balances. These accounts include ____.
cost, contra revenue, and expense accounts
Hook Holidays signed a 90-day note on March 5 of the current year. The maturity date of the note is ____.
Accumulated earnings on the employee earnings record are used to ____.
indicate when the tax base has been reached
On February 18, a 30-day, 9% note receivable for $300.00 is due. The interest income from the note is ____.
The date on which a board of directors votes to distribute a dividend is called the ____.
date of declaration
An amount of cash kept on hand and used for making small payments is called ____.
Total sales for the previous month were $32,684. Sales discounts were $188 and sales returns and allowances were $440. Roberta Franklin is paid a 1% commission on net sales. Her commission for the previous month amounted to
Journal entries used to prepare temporary accounts for a new fiscal period are ____.
Total shares of ownership in a corporation are called ____.
Gross profit on operations appears on which financial statement?
Action by the board of directors to distribute corporate earnings to stockholders is called ____.
declaring a dividend
The recording of debit and credit parts of a transaction is called ____.
Intangible assets are listed on which financial statement?
Accumulated earnings are also known as ____.
Most businesses take a periodic inventory ____.
Because there is no way of knowing for sure which customer accounts will become uncollectible, an estimate is made based on ____.
past history of uncollectible accounts expense
When all employees have cashed their payroll checks, the balance of the payroll bank account ____.
Transferring information from a journal entry to a ledger account is called ____.
An entry that is the exact opposite of an adjusting entry is known as a(n) ____.
A corporation's own stock that has been issued and reacquired is called ____.
The period of time needed to sell an average amount of merchandise inventory is called the ____.
average number of days' sales in merchandise inventory
The method of depreciation that charges an equal amount of depreciation expense for a plant asset in each year of its useful life is ____.
A completed form authorizing a seller to deliver goods with payment to be made later is called a(n) ____.
When stock is sold, the additional capital becomes part of a corporation's ____.
Adjusting entries are recorded so that the supplies used during a fiscal period are reported as expenses and the supplies not used are reported as assets. This is an application of which accounting concept?
matching expenses with revenue
The length of time for which a business summarizes reports and financial information is a(n) ____.
In a payroll register, the net pay represents ____.
total earnings less total deductions
A list of customer accounts, account balances, and total amount due from all customers is a ____.
schedule of accounts receivable
Which method of depreciation will result in the largest amount of depreciation expense in the first year of a plant asset's life?
An amount owed by a business is called a(n) ____.
An account that reduces a related account on a financial statement is called a(n) ____.
Treasury Stock is classified as a contra ____.
capital stock account
Unemployment taxes are paid by the employer and are due to the ____.
both federal and state government
Financial rights to the assets of a business are called ____.
Using the allowance method, an account is written off ____.
when it is thought to be uncollectible
he value of an asset determined by tax authorities for the purpose of calculating taxes is called ____.
The account debited when a stock subscription for common stock is received is ____.
All time worked in excess of ____ hours in any one week is considered overtime
When journalizing a transaction in the sales returns and allowances journal, the accounts debited are ____.
Sales Tax Payable and Sales Returns and Allowances
Past experience indicates that approximately 1% of Sweeney, Inc.'s net sales will become uncollectible. If net sales are $300,000.00, estimated uncollectible accounts expense will be ____.
When employees are paid a percentage of sales in addition to their regular salary, the earnings are often referred to as ____.
A share of stock that has no authorized value printed on the stock certificate is called ____.
no-par value stock
A tax which is not deducted from employee's pay is ____.
federal unemployment tax
A form used to show the type of merchandise, quantity received, quantity sold, and balance on hand is called a(n) ____.
A record summarizing all the information pertaining to a single item in the accounting equation is called a(n) ____.
When a customer account is known to be uncollectible, the amount becomes a(n) ____.
expense of the business
A merchandise inventory determined by keeping a continuous record of increases, decreases, and balance on hand is a(n) ____.
The total value of capital stock issued is shown on which financial statement?
statement of stockholders' equity
Assets of a nonphysical nature that have value for a business are ____.
A group of accounts is called a(n) ____.
The costing method that uses the price of merchandise purchased last to calculate the cost of merchandise sold first is called ____.
One item of information available through a departmental accounting system is the ____.
gross profit for each department
When journalizing a cash receipt transaction for cash and credit card sales, what appears in the Account Title column?
a check mark
Anything of value that is owned is called a(n) ____.
An account balance that is opposite the normal balance is called a(n) ____.
When journalizing a transaction in the sales returns and allowances journal, the account(s) credited is (are) ____.
Which of the following statements about treasury stock is NOT true?
Treasury stock does not appear on the corporation's financial statements.
Amounts owed by customers are recorded in a general ledger account titled ____.
A trial balance prepared after the closing entries are posted is a(n) ____.
post-closing trial balance