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Accounting I-Semester Test 14-15(Part III)

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1.
1 point
Permanent accounts start each accounting period with a zero balance.
2.
1 point
The various activities a business completes to organize its accounting records in an orderly fashion is called the ____.
3.
1 point
The total of all accounts with normal debit balances should equal the total of all accounts with normal credit balances if the rules of debit and credit were followed correctly.
4.
1 point
A credit to an account always increases it; a debit to an account always decreases it.
5.
1 point
Liability, expense, and capital accounts all have normal credit balances.
6.
1 point
A(n) ____ occurs when the owner takes assets out of the business for personal use.
7.
1 point
The dollar balance of a(n) ____ account is carried forward from one period to the next.
8.
1 point
Revenues increase owner's equity, and increases in revenues are recorded as debits.
9.
1 point
A business should have separate accounts for recording revenues and expenses.
10.
1 point
Money a business earns from the sale of goods or services is the ____.
11.
1 point
Expenses have the opposite effect from revenue on the capital account.
12.
1 point
A journal is like a diary of a business because it is the only place where complete details of a transaction are recorded.
13.
1 point
An account's ____ is always on the increase side of an account.
14.
1 point
The type of source document prepared depends upon the nature of the transaction.
15.
1 point
A chart of accounts is limited to 50 accounts.
16.
1 point
The rules of debit and credit for expense accounts are the same as the rules for asset accounts.
17.
1 point
An accounting period that begins on July 1 and ends on June 30 is a calendar-year accounting period.
18.
1 point
A business groups its accounts in a ledger.
19.
1 point
A(n) ____ is an accounting period of twelve months ending on the last day of any month except December.
20.
1 point
The balance of a(n) ____ account does not carry forward to the next accounting period.
21.
1 point
Expenses decrease owner’s equity and are recorded as debits.
22.
1 point
To verify a source document means to check the accuracy of the information on it.
23.
1 point
Never erase an error in a journal entry because an erasure looks suspicious.
24.
1 point
The title of the account to be credited is indented from the left edge of the Description column so it can be easily distinguished from the debit part of the transaction.
25.
1 point
The payment of a liability is recorded by a debit to the liability account and a credit to the owner's capital account.
26.
1 point
The difference between the debit and credit amounts in an account is the account balance.
27.
1 point
An asset account appears on the right side of the accounting equation and is also increased on the right side of its T account.
28.
1 point
A(n) ____ is often called a book of original entry.
29.
1 point
The withdrawal of cash by the owner of a business decreases owner's equity.
30.
1 point
A(n) ____ is a tool used to analyze a business transaction's effect on an account.
31.
1 point
The ____ is an "official" list of all the accounts used by a business to record its transactions.
32.
1 point
Since the debit and credit amounts in a business transaction are the same, the order in which the account titles are recorded in the general journal does not matter.
33.
1 point
Temporary capital accounts are extensions of the owner's capital account.
34.
1 point
The amount entered on the left side of an account is the ____.
35.
1 point
Recording transactions is the second step in the accounting cycle.
36.
1 point
Every transaction affects two or more accounts and is recorded by equal amounts of debits and credits.
37.
1 point
A(n) ____ is any type of business paper that verifies that a transaction occurred.
38.
1 point
Liability, revenue, and withdrawal accounts all have normal credit balances.
39.
1 point
A fiscal period may be one month, three months, six months, or even one year, but usually it is one year.
40.
1 point
When a business follows the GAAP of ____, revenue is recorded on the date it is earned.
41.
1 point
A business transaction can affect two accounts on the same side of the accounting equation and still leave the equation in balance.
42.
1 point
The ____ is an all-purpose journal used for recording business transactions.
43.
1 point
Income from Fees is a permanent account.
44.
1 point
The top of the T account is used for account titles. Credits are entered on the left side of the T; debits, on the right.
45.
1 point
____ requires a debit and a credit for each transaction.
46.
1 point
To record transactions in chronological order means to record them according to the date on which they occurred.
47.
1 point
An amount entered on the right side of an account is a(n) ____.
48.
1 point
The costs of doing business are known as ____.
49.
1 point
Debit and credit rules for accounts on one side of the accounting equation are mirror images of those on the other side.
50.
1 point
In order to help an owner/manager know the financial condition of a business, accounting records are kept and reported for a certain period of time called an accounting period.
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