Accounting

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Accounting
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  1. Basic accounting theory is based on
    double entry
  2. the group of accounts which you debit when increased are
    assets and expenses
  3. the group of accounts which you credit to increase are
    liabilities and capital
  4. when a funeral director buys a casket coach on credit, he would
    credit casket coach and debit accounts payable
  5. the payment of rent by cash is recorded
    debit rent expense and credit cash
  6. purchase of office supplies on credit is recorded by
    debit office supplies and credit accounts payable
  7. A ledger is a book of
    accounts
  8. an entry on the debit side of a liability account indicated the accounts has been
    decreased
  9. an entry made on the debit side of the proprietorship account indicates that the account has been
    decreased
  10. an entry made on the debit side of an expense accounts indicates that the account has been
    increased
  11. the beginning balance in the supplies accounts 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
    $1100
  12. an entry made on the debit side of an asset account indicates that account has been
    increased
  13. the things of value owned by a business are
    assets
  14. an accounting year ending on some date other than December 31st is called
    fiscal year
  15. a person to whom a debt is owned is called a
    creditor
  16. a plant asset was purchased by the funeral home costing $8000. It has a useful life of 3 years and a salvage value of 2000. Using the straight-line method of depreciation, what would be the yearly amount of depreciation
    2,000
  17. what does not appear on the balance sheet
    Expenses
  18. Liabilities are all things a funeral director
    owes
  19. A Profit and Loss Statement can be prepared
    at any time
  20. an entry on the credit side of a revenue account indicates the account has been
    increased
  21. when cash is spent in the acquisition of an asset the net worth of a business is
    not affected
  22. the process of recording information in the ledger is called
    posting
  23. Accounts Receivable is what type of account
    asset account
  24. Another term for Profit and Loss Statement is
    income statement
  25. the amount of revenue from the sale of funeral services would be shown on the
    Profit and Loss Statement
  26. the right side of a standard account is called the
    credit side
  27. the totaling of a column in  journal or ledger account is called
    footing
  28. Advertising expense would be reflected on the
    income statement
  29. the accounts payable account would be shown on the
    Balance sheet
  30. a group of accounts constitutes as a
    ledger
  31. if the total of the operating expenses section of the income statement is smaller than the total of the income section, the difference is
    net profit
  32. Expense means a
    decrease in owners equity
  33. what accounts would be used to assist the accountant in an adjusting entry involving depreciation
    accumulated depreciation
  34. the title of an account which would normally have a credit balance is
    accounts payable
  35. an increase in proprietorship as the result of a business transaction is a(n)
    income
  36. a list of accounts that shows the arrangement of the accounts in he ledger is called
    chart of accounts
  37. double entry bookkeeping means an entry is made
    as a debit and credit
  38. the proprietorship of a business may be increased by
    net income and investment of assets in the business by the owner
  39. the difference btwn the two sides of an account is called the
    account balance
  40. the proprietorship of a business may be decrease by
    expenses and withdrawals of assets from the business by the owner
  41. to establish a petty cash fund, one would
    debit petty cash and credit cash
  42. the abbreviation for "debit" is
    dr
  43. the abbreviation for "credit" is
    cr
  44. a person who signs a check or draft ordering payment to be made is called the
    maker
  45. a person or concern, usually a bank, that has been ordered to make payment on a check or draft is called the
    drawee
  46. a person or company who will receive payment on a promissory note, check, draft or money order is called the
    payee
  47. F.I.C.A. refers to
    social security
  48. property of a relatively permanent nature used in the operation of a business and not intended for resale is called
    fixed asset
  49. debts that are not due and payable w/I a year are called
    fixed liabilities
  50. the difference btwn cost of goods sold and their selling price is called
    gross profit
  51. the excess of current assets over current liabilities is called
    working capital
  52. a written promise of a customer to pay the business a sum of money at a future date is called a(n)
    note receivable
  53. what does not qualify as a current asset
    land
  54. a synonym for fair wear and tear of a durable asset is
    depreciation
  55. a language of business employed to communicate financial information base upon the recording, classification, summarization, and interpretation of financial data is called
    accounting
  56. Assets=Liabilities+Owner's Equity is the
    accounting equation
  57. the increase in net worth due to the excess of income over costs and expenses is called
    profit
  58. money paid for the use of money is called
    interest
  59. the difference btwn net sales and cost of goods sold
    gross margin
  60. goods purchase for resale at profit
    merchandise
  61. a disbursement is a
    payment
  62. what would be the closing entry to close the revenue account
    debit revenue, credit expense and revenue summary
  63. income received but not yet earned is
    deferred income
  64. a paper showing quantity, description, prices of items, ttl amount of purchase, and terms of payment is a(n)
    invoice
  65. one who has made a sale is called a(n)
    vendor
  66. an estimate of revenue and probable expense for a given period of time is a
    budget
  67. the person or business concern to whom a shipment is made is a
    consignee
  68. a distribution of profits of a corporation to its stockholders as declared by the board of directors is
    dividends
  69. the person who orders the bank to make payment of a financial instrument is properly termed a/an
    drawer
  70. the sole owner of a business is a
    proprietor
  71. a fund of currency and coin established for the payment of small amounts of money is
    petty cash
  72. the difference btwn ttl sales and sales returns and allowances is
    net sales
  73. the amount added to the cost of an article to determine the selling price of that article is the
    mark-up
  74. a ttl, written in small pencil figures, under the last entry in a column is the
    footing
  75. a double line under the last entry on a T-account means
    the entry is complete
  76. increases in the owner's equity resulting from business operations is known as
    income
  77. that portion of a plant assets original cost that cannot be depreciated is called
    scrap value
  78. a decrease in net worth due to excess of cost and expenses over income is
    loss
  79. the merchandise that a business keeps on hand for sale is the
    inventory
  80. which of the following represents the difference btwn the ttl assets and the ttl liabilities 

    1) owner's equity 
    2) fixed assets
    3)net income
    4)supplies
    1,2,and 4 only
  81. the holder or person owning stock in a corporation is the
    stockholder
  82. at the end of the month, a funeral home's assets ttl 50,000; the liabilities ttl 20,000; revenue for the month ttl 6,000; and the ttl of the expenses amounted to 4,000. which of the following statements is true

    1) owner's equity = 70,000
    2) owner's equity = 30,000
    3) net income = 2,000
    4)net loss = <2,000>
    2 and 3
  83. the basic accounting theory is based on
    double entry
  84. the acronym REID is used when
    closing temporary accounts
  85. the period of time required to purchase goods and services and turn them back into cash is called
    the normal operating cycle
  86. a ledger is a book of
    accounts
  87. an entry on the debit side of the owners equity indicates that the account has been
    decreased
  88. an entry on the credit side of an expense account indicates the account has been
    closed
  89. the book of original entry is in
    chronological order
  90. the debts ones owes are
    liabilities
  91. the things one owns are
    assets
  92. sales minus cost of goods sold equals
    gross profit
  93. the amount of depreciation taken during the current fiscal yr is properly termed
    depreciation expense
  94. the decrease in value of a fixed asset is called
    depreciation
  95. the process of recording information in the ledger is called
    posting
  96. the primary purpose of business is
    profit
  97. the only time the debit side of the revenue account is used is when you make
    closing entries
  98. when cash is spent in the acquisition of an asset the impact on the accounting equation is
    the asset cash is credited
  99. an entry on the credit side of a liability account indicates that the account has been
    increased
  100. accounts payable is a/an
    liability accounts
  101. goodwill is classified as a/an
    intangible asset
  102. another name for Profit and Loss Statement is
    income statment
  103. the amount of income from the sale of funeral services would be shown on which formal financial statement
    income statement
  104. the left side of a standard account is called the
    debt side
  105. income earned but not received is called
    accrued income
  106. the ttling of a column of a journal or ledger is called
    footing
  107. the cost of operating a business is called
    overhead
  108. working capital is a measure of
    liquidity
  109. the debit side of the T-account is the
    left side
  110. a book in which the daily transactions of a business are first written is the
    journal
  111. the credit side of the T-account is the
    right side
  112. a decreased in owners equity resulting from a business transaction is a/an
    expence
  113. an increase to which of the accounts will increase owner's equity
    client fees
  114. a term which is used synonymously with operating expenses is
    cost of good sold
  115. accounts receivable are examples of
    assets
  116. checks returned to the depositor that have been paid by the bank are
    canceled checks
  117. a check that has been issued but not presented for payment to a bank is called a
    outstanding check
  118. accounts receivable which are uncollectable are
    bad debts
  119. a ledger must contain
    cash disbursed
  120. a loan from a bank secured by property is
    a mortgage payable
  121. salary expense is considered to be
    an operating expense
  122. posting is a/an
    recording of a liability
  123. when delivery revenue is earned on account, which accounts increase and decrease
    accounts receivable increases; revenues increases
  124. a special fund for use in disbursing small sums of money is called a/an
    patty cash fund
  125. a journal designed for recording a particular type of transaction is known as a/an
    special journal
  126. if a funeral home sells a funeral service on a 30 day account, the entry to record the transaction would be to
    debit accounts receivable, credit sales
  127. 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 cash, credit accounts receivable
    debit accounts receivable, credit cash
    debit purchases, credit sales
    debit cash, credit accounts receivable
  128. if a funeral director purchases caskets from a casket manufacturer on a 30 day account, he would record the transaction as follows
    debit purchases, credit accounts payable
  129. a funeral car is purchased by a funeral home for 30k. the vehicle will be used for five years and then replace. if the estimated salvage value will be 5k, what will be the amount of yearly depreciation using the straight-line method of depreciation for computation
    5,000
  130. 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, his gross earnings for the period would be
    779.14
  131. john smith is employed at a local funeral home and is paid on an hourly rate per hour. he is also paid time and a half for any hours worked in excess of 40 hrs per week. for the current pay period,he worked a ttl of 60% hrs. if his FICA tax is 6%, and his wothholding tax is 10%, what is his take-home pay for the week
    294.00
  132. liability accounts are identified by the account title following by the word
    payable
  133. expenses are listed on which of the following reports

    profit and loss statement
    statement of financial condition
    income statement
    balance sheet
    1 and 3
  134. when you recognize revenue when it is earned, and expenses when they are incurred you are operating under the
    fiscal basis of accounting
  135. the account that provides a current or future benefit to the business is properly termed
    an asset accout
  136. used for recording sale of merchandise on crdit
    sales journal
  137. used for all types of business transactions
    general journal
  138. used to record the buying of merchandise on credit
    purchases journal
  139. used to record the receipt of cash
    cash receipt journal
  140. used to record the paying of cash
    cash payments journal
  141. accounts payable is
    current liabilities
  142. accounts receivable is
    current assets
  143. capital is
    proprietorship
  144. mortgage payable is
    fix liability
  145. funeral coach is
    fixed asset
  146. difference btwn assets and liabilities are
    owners equity
  147. statement of financial condition
    balance sheet
  148. things of value owned by a business
    assets
  149. check of equality of debits and credits
    trial balance
  150. recording information in a ledger
    posting
  151. a book of accounts
    ledger
  152. book of original entry
    journal
  153. statement of assets, liabilities, and owners equity at a specific date
    balance sheet
  154. statement of income, expenses, and net income or net loss for a period of time
    income statement
  155. unwritten promises of a business to pay creditors
    accounts payable
  156. unwritten promises by customers to the business pay at a later date
    accounts receivable
  157. any debt that a business owes
    liabilities
  158. properties of monetary value owned by a business
    assets
  159. an owners financial interest in a business
    owners equity
  160. a book of original entry in which business transactions are recorded in chronological order
    journal
  161. the buying of merchanise
    purchases
  162. the face value of a note on which interest is computed
    principal
  163. ordinarily refers only to merchandise sold
    sales
  164. a book of accounts
    ledger
  165. current assets divided by current liabilities
    current ratio
  166. a written promise of a customer to pay the business a sum of money at a future date
    note receivable
  167. the right side of a standard account is
    credit
  168. a written promise of a business to pay a creditor a certain amount in the future
    note payable
  169. the left side of a standard account is
    debt
  170. accounts receivable that are uncollectable
    bad debts
  171. amounts paid by a business for merchandise
    cost
  172. money and money substitutes received
    cash receipts
  173. debts that must be paid within a year
    current liabilities
  174. the owners equity or the owners financial interest in a business
    proprietorship
  175. a business or individual to whom a debt is owed
    creditor
  176. a business firm that obtains income through the buying and selling og goods
    merchandising business
  177. a business, owned by stockholders, which is chartered under state law to conduct a business or other activity
    corporation
  178. the individual who makes a promise to pay on a promissory note
    maker
  179. a statement regarding the status of assets, liabilities, and owners equity as of specified date
    balance sheet
  180. a formal statement which presents the revenue and expenses of a specified period of time
    income statement
  181. the first record of a business transactions
    source document
  182. financial events that affect assets, liabilities, or owners equity
    transaction
  183. an informal statement proving that ttl debit balances are equal to the ttl credit balances in the ledger
    trial balance
  184. in order of time
    chronological
  185. the person or business concern by whom a shipment is made
    cosignor
  186. a person who sign a check or draft ordering payment to be made
    drawer
  187. the decrease in owners equity due to consumption of goods and services used in the operation of a business
    expense
  188. increase in the owners equity resulting from business operations
    income
  189. the recording of business data in a prescribed manner
    bookkeeping
  190. coins, currency, checks, and money orders received from others, as well as money deposited in the bank
    cash
  191. the net value of an owners financial interest in a business
    capital
  192. cash or other assets that will be converted into cash or consumed w/I one yr
    current assets
  193. the transferal of the balances of the temporary accounts to the capital account
    closing entries
  194. recording in each fiscal period applicable expense, whether paid or not, and income earned, whether collected or not
    accrual accounting
  195. an itemized listing of additions to and subtractions from a depositor's account
    bank statement
  196. an individual certified to practice public accounting in a state
    certified public accountant
  197. a document issued by a state which permits a corporation to operate
    charter
  198. a written order drawn by a depositor directing his bank to deduct money from his account and pay the person or company designated
    check
  199. the money or other assets supplied by the owner for the operation of business
    inverstment
  200. a written promise that pledges real property as security for the payment of debt
    mortgage payable
  201. a business paper that is a claim on cash and which may be transferred legally by endorsement
    negotiable instrument
  202. excess of current assets over current liabilities
    net working capital
  203. journal page numbers and ledger account numbers which, when present, confirms that an entry has been posted
    posting reference
  204. credit given to a customer for shortages or damage goods delivered
    sales returns and allowance
  205. a deduction from the sales invoice as an incentive for customers to pay their invoices early
    sales discount
  206. an account used to accumulate decreases in value of fixed assets
    allowance for depreciation
  207. a report sent to each customer which indicates the status of his account
    statement of accounts
  208. income earned during an accounting period but not yet received
    accrued income
  209. an account used to record or determine the estimated value of an asset
    valuation account
  210. a separate owners equity account in which withdrawals of asset against profits by the owners are recorded
    Drawing account
  211. Credit received for shortages or for damaged goods received
    purchase returns and allowances
  212. an account in which is recorded the decrease in value of accounts receivable due to possible uncollectable items
    allowance for doubtful accounts
  213. a written promise to pay money to another person or business at a specified or determinable time
    promissory Note
  214. the amount paid for insurance protection
    Insurance premium
  215. levied on the earnings of individuals and business by federal, state, and local government
    income tax
  216. a contract between an insurance company and the party insured
    insurance policy
  217. imposed upon the purchaser of goods and collected by the seller, who remits such to the state or city government
    retail sales tax
  218. evidence of the ownership of corporation stock
    stock certificate
  219. Capital or Net Worth
    Proprietoship
  220. accounts receivable
    current assets
  221. Accounts Payable
    Current Liability
  222. mortgage payable within 15 days
    fixed liability
  223. assets which will not be sold during the fiscal period
    fixed liability
  224. things of value owned by a business
    assets
  225. One's Debts
    Liabilities
  226. the Equity of the owners of a business
    proprietorship
  227. the financial statement reflects the status of assets, liabilities, and owner equity as of a given date
    balance sheet
  228. a check of equality of debits and credits
    trial Balance
  229. one who owes debts
    debtor
  230. one to whom debts are owed
    creditor
  231. owners equity
    proprietorship
  232. mortgage payable
    fixed liability
  233. accounts payable
    current liability
  234. Recording information in a ledger
    posting
  235. a book in which the first formal double entry record of transactions is made
    journal
  236. a statement of assets, liabilities, and proprietorship at a specified date
    balance sheet
  237. a summary of the results of operations for a specified period of time
    profit and loss statement
  238. used to record paying cash for an item
    cash payments journal
  239. for recording the buying of an article on credit
    purchases journal
  240. for receiving cash for merchandise
    cash receipts journal
  241. used to record selling of merchandise on credit
    sales journal
  242. used for miscellaneous entries
    general journal
  243. to be used over a long period of time
    fixed assed
  244. to be used relatively soon
    Current asset
  245. capable of being touched
    tangible asset
  246. not physical or material
    intangible asset
  247. money
    cash asset
  248. check returned to the depositor that has been paid by the bank
    Canceled
  249. a source of information for the journal
    check stub
  250. the one to whom the bank is ordered to pay the cash
    payee
  251. a check that has been issued but not yet presented for payment
    outstanding
  252. the one who orders the bank to pay money from his account
    drawer
  253. the time allowed for the payment of a sale
    terms
  254. assets taken out of the business by the owner for his personal use
    withdrawals
  255. the period for which an analysis of the operations of a business is made
    fiscal period
  256. a journal entry that contains two or more debts or two or more credits
    compound entry
  257. an accounting year ending some other date than December 31st
    Fiscal year
  258. free or board
    F.O.B.
  259. collect before delivery
    C.B.D.
  260. certified public accountant
    C.P.A
  261. Cost, insurance, and freight
    C.I.F.
  262. collect on delivery
    C.O.D
  263. stockholders
    corportion
  264. land, buildings, equpment
    fixed asset
  265. amount added to cost of merchandise to determine the selling price
    mark up
  266. a business owned by two or more individuals with profits or losses jointly shared
    partnership
  267. money paid for the use of money
    interest
  268. a special book in which payments made by check are recorded
    check register
  269. a check drawn by a bank on its own funds and signed by the cashier
    cashier's check
  270. a check which carries the guarantee of the drawee that sufficient funds are available to pay the check when it is properly presented
    certified check
  271. cost of a fixed asset less accumulated depreciation
    book value
  272. a paper showing quantity, description, price of items, total amount of purchase and the terms of payment
    invoice
  273. a payment
    disbursement
  274. to delay until a later date
    deferred
  275. consists merely of the signature of the endorser on the back of the check
    blank endorsement
  276. endorsement which uses the phrase, "pay to the order of"
    endorsement in full
  277. endorsement which uses the phrase " for deposit only"
    restrictive endorsement
  278. the comparison of current assets with current liabilities
    current asset ratio
  279. the comparison of the fixed assets with the fixed liabilities
    long-lived asset ratio
  280. comparison of cash and all the other current assets that are readily recognizable in cash with the current liabilities
    acid test ratio
  281. comparison of total assets with total liabilities
    total asset ratio
  282. determined by dividing the cost of goods by the average inventory
    inventory turnover

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