Accounting 1 Review #2 State Test

An income statement shows total revenues earned, total expenses paid, and: Net expenses Net Income or Net Loss Total income Balance of all permanent accounts

A balance sheet reports financial information ____, indicating the financial condition of a business Daily At the end of the fiscal period At the end of the month On a specific date

The Income Summary account is unique because: It does not have a normal balance side It always has a zero balance It always has a credit balance It always has a debit balance

Reports prepared to summarize the changes resulting from business transactions that have occurred during a fiscal period: Bank Statement Balance Sheet Income Statement Financial Statements

A check with a future date is called a ___ check. Futures Postdated Staledated Voided

A check that is recorded in the depositor’s records but not on the bank statement is called a(n): Outstanding deposit Postdated check Staledated check Outstanding check

Which of the following is a temporary account? Assets Revenue Liabilities Capital

When using closing entries, you close expenses into what account? Income Summary Capital Revenue Liabilities

A form on which a brief message is written describing a transaction. Check Receipt Check stub Memorandum

The process of matching your checkbook register with your bank statement is called: Checking Reporting Adjusting Reconciling

The amount of cash kept on hand and used for making small payments: Excess Cash Petty Cash Payment Cash Revenue Cash

A check the bank refuses to pay is called a(n): Dishonored Check Voided Check Canceled Check Bounced Check

Which of the following accounts is not used in the Statement of Changes in Owner’s Equity? Net Income Capital Cash Withdrawals

Determining that the amount of cash agrees with the accounting records is called? Balancing the account Verifying records Proving cash Ruling

A trial balance prepared after the closing entries are posted: Post Closing Trial Balance Final Trial Balance Ending Trial Balance Fiscal Trial Balance

Temporary account in the general ledger that is only used for closing entries: Capital Drawing Income Summary Sales

A report of deposits, withdrawals, and bank balances sent to a depositor by a bank is called: a bank reconciliation a bank statement a bank record bank adjustments

If total expenses exceed _____, a net loss is reported on an income statement. net expenses profit total revenue net income

Which accounting concept is applied when financial statements are prepared with the expectation that a business will remain in operation indefinitely? Continual operation Indefinite operation Continual concern Going concern

Accounts used to accumulate information from one fiscal period to the next are called ___ accounts. cumulative permanent carry-over perennial

Journal entries used to prepare temporary accounts for a new fiscal period. Adjusting entries Closing entries Correcting entries Journal entries

Putting lines under an amount column to show that the amounts are in balance and work is accurate. Double ruling Single ruling Proving Equaling

Accounts used to accumulate information until it is transferred to the owner’s capital section. Permanent accounts Adjusting accounts Temporary accounts Closing accounts

Information needed to prepare the ____ section of a balance sheet is obtained from the work sheet’s Account Title column and the Balance Sheet credit column. assets liabilities owner’s equity total liabilities and owner’s equity

A business form giving written acknowledgement for cash received: Invoice Receipt Check stub Memorandum