Mors 200 Arts Final - Accounting Compend- Multiple Choice Part 1
Another name for a Profit and Loss Statement is the Income Statement. It summarizes a business's revenues and expenses over a specific period, showing the net profit or loss.
Good will is classified as a/an:
A. intangible asset
B. liability account
C. revenue account
D. tangible asset
intangible asset
Key Terms
Good will is classified as a/an:
A. intangible asset
B. liability account
C. revenue account
D. tangible asset
intangible asset
Another name for Profit and Loss Statement is:
A. Balance Sheet
B. Income Statement
C. Statement of Financial Condition
D. Work Sheet
Income Statement
The amount of income from the sale of funeral services would be shown on which formal financial statement?
A. Balance Sheet
B. Profit and Loss Statement
C. Work Sheets
D. Trial Balance
Profit and Loss Statement
The left side of a standard account is called the:
A. credit side
B. debit side
C. profit side
D. sales side
debit side
Income earned but not received is called:
A. fiscal income
B. accrued income
C. deferred income
D. future income
accrued income
The totaling of a column of a journal or ledger is called:
A. journalizing
B. footing
C. summarizing
D. posting
footing
Related Flashcard Decks
Study Tips
- Press F to enter focus mode for distraction-free studying
- Review cards regularly to improve retention
- Try to recall the answer before flipping the card
- Share this deck with friends to study together
| Term | Definition |
|---|---|
Good will is classified as a/an: A. intangible asset B. liability account C. revenue account D. tangible asset | intangible asset |
Another name for Profit and Loss Statement is: A. Balance Sheet B. Income Statement C. Statement of Financial Condition D. Work Sheet | Income Statement |
The amount of income from the sale of funeral services would be shown on which formal financial statement? A. Balance Sheet B. Profit and Loss Statement C. Work Sheets D. Trial Balance | Profit and Loss Statement |
The left side of a standard account is called the: A. credit side B. debit side C. profit side D. sales side | debit side |
Income earned but not received is called: A. fiscal income B. accrued income C. deferred income D. future income | accrued income |
The totaling of a column of a journal or ledger is called: A. journalizing B. footing C. summarizing D. posting | footing |
The cost of operating a business is called: A. accounts payable B. fixed liabilities C. overhead D. revenue | overhead |
Working capital is a measure of: A. liquidity B. profitability C. leverage D. investing activities | liquidity |
The debit side of the T-account is: A. plus side B. minus side C. right side D. left side | left side |
A book in which the daily transaction of a business are first written is the: A. ledger B. schedule C. index D. journal | journal |
The credit side of the T-account is: A. plus side B. minus side C. right side D. left side | right side |
A decrease in owners equity resulting from a business transaction is a/an: A. expense B. liability C. net worth D. income | expense |
An increase to which of the accounts will increase owner's equity? A. Account Payable B. Drawing C. Client Fees D. Rent Expense | Client Fees |
A term which is used synonymously with operating expenses is: A. net sales B. overhead C. gross profit D. cost of goods sold | Overhead |
Accounts receivable are examples of: A. assets B. liabilities C. proprietorship D. income | assets |
Checks returned to the depositor that have been paid by the bank are: A. canceled checks B. deposit checks C. order checks D. outstanding checks | canceled checks |
A check that has been issued but not presented for payment to a bank is called: A. cancelled check B. deposited check C. order check D. outstanding check | outstanding check |
Accounts receivable which are uncollectable are: A. incurred income B. accrued income C. fixed assets D. bad debt | bad debts |
A ledger must contain: A. assets B. liabilities C. all accounts D. cash disbursed | all accounts |
A loan from a bank secured by property is: A. an asset B. a note receivable C. a mortgage payable D. an account payable | a mortgage payable |
Salary expense is considered to be: A. a cost of goods sold B. capitalization C. an operating expense D. fixed expense | an operating expense |
Posting is a/an: A. form of advertising B. transportation of figures C. recording of a liability D. transfer of figures from the journal to the ledger | Transfer of figures from the journal to the ledger |
When delivery revenue is earned on account, which accounts increase and decrease? A. Cash increases and revenue increases B. Accounts receivable increases and revenues increases C. Accounts receivable increases and revenues decreases D. Accounts receivable decreases and revenues decreases | Accounts receivable increases and revenues increases |
A special fund for use in disbursing small sums of money is called a/an: A. petty cash fund B. working fund C. impress fund D. loan fund | petty cash fund |
A journal designed for recording a particular type of transaction is known as a/an: A. general ledger B. general journal C. special journal D. combination journal | special journal |
If a funeral home sells a funeral service on a 30 day account, the entry to record the transaction would be to: A. debit sales; credit accounts receivable B. debit accounts receivable; credit sales C. debit accounts payable; credit purchases D. debit notes receivable; credit sales | Debit accounts receivable; credit sales |
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: A. debit cash; credit accounts receivable B. debit accounts receivable; credit cash C. debit purchases; credit cash D. debit cash; credit sales | debit cash; credit accounts receivable |
If a funeral director purchases caskets from a casket manufacturer on a 30 day account, he would record the transaction as follows: A. debit sales; credit purchases B. debit purchases; credit cash C. debit purchases; credit accounts receivable D. debit purchases; credit accounts payable | debit purchases; credit accounts payable |
A funeral car is purchased by a funeral home for $30,000. The vehicle will be used for 5 years and then replaced. If the estimated salvage value will be $5,000, what will be the amount of yearly depreciation using the straight line method of depreciation for computation? A. $2000 B. $3500 C. $5000 D. $6500 | $5000 |
David O'Dell is an employee of Mid-Cities Embalming Service and is paid a salary of $1850 per month. He is also paid time and a half for all hours worked in excess of 40 hours per week. If Mr. O'Dell worked 62 hours last week, his gross earnings for the period would be: A. $569.41 B. $629.14 C. $779.14 D. $869.41 | $779.14 |
John Smith is employed at a local funeral home and is paid an hourly rate of $5 per hour. He is also paid time and a half for any hours worked in excess of 40 hours per week. For the current pay period, he worked a total of 60 hours. If his FICA is 6% and his withholding tax is 10%, what is his take home pay for the week? A. $329 B. $315.85 C. $350 D. $294 | $294 |
Liability accounts are identified by the account title followed by the word: A. expense B. revenue C. payable D. drawing | payable |
Expenses are listed on which of the following reports: Profit and Loss Statement Statement of Financial Condition Income Statement Balance Sheet A. 1 & 2 B. 1 & 3 C. 2 & 4 D. 3 & 4 | 1 & 3 |
The report that shows the financial condition of the business at a point in time is called the: Income Statement Statement of Financial Condition Balance Sheet Profit and Loss Statement A. 1 & 2 B. 2 & 3 C. 1 & 4 D. 3 & 4 | 2 & 3 |
The accounting equation may be stated as: liabilities = assets + owner's equity assets + liabilities = owner's equity assets= liabilities + owner's equity assets - liabilities = owner's equity A. 1 & 2 B. 1 & 3 C. 2 & 4 D. 3 & 4 | 3 & 4 |
When you recognize revenue when it is earned, and expenses when they are incurred you are operating under the: A. cash basis of accounting B. modified cash basis of accounting C. accrual basis of accounting D. fiscal basis of accounting | accrual basis of accounting |
The account that provides a current or future benefit to the business is properly termed: A. a liability account B. a drawing account C. an expense account D. an asset account | an asset account |
Methods of depreciation that allow the business to recover the cost early in the life of the asset include: double declining balance straight line depreciation sum of the year's digits accumulated depreciation A. 1 & 3 B. 2 & 3 C. 1 & 4 D. 2 & 4 | 1 & 3 |