Accounting Test Suppl Questions

For 2012, Matthews Company had revenues in excess of expenses. Which statement describes Matthews closing entries at the end of 2010?
A) Revenues will be debited, expenses will be credited, and retained earnings will be credited
B) Revenues will be credited, expenses will e debited, and retained earnings will be debited
C) Revenues will be debited, expenses will be credited, and retained earnings will be debited
D) Revenues will be credited, expenses will be debited and retained earnings will be credited – A) Revenues will be debited, expenses will be credited, and retained earnings will be credited
Just in time processing – is a management approach that focuses on reducing time and cost and eliminating poor quality.
objectivity concept – amounts recorded in records based on objective evidence, only agreed upon amount in objective enough to be recorded
Income Statement – Section of the worksheet (not Balance Sheet) used to prepare the financial statements.
Gross profit is
A. Sales revenue less Operating expenses.
B. Sales revenue less Cost of goods sold.
C. Net income less Operating expenses.
D. Net income less Cost of goods sold. – B
Adjusting entries – Journal entries recorded to update general ledger accounts at the end of a fiscal period
Journal entry – Format used for recording transactions
Mr. and Mrs. Bolt's joint return reports $267,500 AGI, which includes $13,300 net investment income. Compute the couple's unearned income Medicare contribution tax.
intangible assets – lack physical substance and are not financial instruments (patents, copyrights, franchises, goodwill, trademarks, trade names, and customer lists)
Financial Statements – Revenue and expense balances from the adjusted balance sheet go on the IS that determines the income for that accounting period.
Income from the IS and equity from adjusted trial balance make the SE this determines the overall equity.
Balance sheet had all the adjusted balances from the IS and SE accounts together and provides accurate FS
transposition error – an amount written with the digits in incorrect order
Non-Current Assets – things that are not reduce to cash in one year.
Mr. аnd Mrs. Bоlt's jоint return repоrts $267,500 AGI, which includes $13,300 net investment income. Compute the couple's uneаrned income Medicаre contribution tax.
the term that describes the replacement of cash in the petty cash fund – replenish
What is a financial transaction? – any event that affects the financial position of the business that can be reliabily recorded, involves debits or credits
code of conduct: a statement that guides the ethical behavior of a company and its employees – code of conduct: a statement that guides the ethical behavior of a company and its employees
An organization uses internal controls to enhance the accuracy and reliability of its accounting records and to
A. safeguard its assets.
B. prevent fraud.
C. produce correct financial statements.
D. deter employee dishonesty. – A
Accounts Payable – Used when cash is paid in a period AFTER receiving services. Accounts payable is OWED to suppliers.

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