Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Mors 200 Arts Final > Accounting Compend- Multiple Choice > Flashcards

Accounting Compend- Multiple Choice Flashcards

1
Q

Basic accounting theory is based on:

  • single entry
  • double entry
  • triple entry
  • a double book
A

double entry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The group of accounts which you debit when increased are:

  • assets and capital
  • assets and income
  • assets and expenses
  • assets and liabilities
A

assets and expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The group of accounts which you credit to increase are:

  • liabilities and capital
  • liabilities and expenses
  • liabilities and assets
  • assets and expenses
A

liabilities and capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When a funeral director buys a casket coach on credit, he would:

  • debit cash and credit casket coach
  • debit casket coach and credit accounts payable
  • debit casket coach and credit cash
  • credit casket coach and debit accounts payable
A

debit casket coach and credit accounts payable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The payment of rent by cash is recorded:

  • debit cash and credit capital
  • debit accounts payable and credit cash
  • debit rent expense and credit cash
  • debit cash and credit rent expense
A

debit rent expense and credit cash

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Purchase of office supplies on credit is recorded by:

  • debit office supplies and debit credit purchases
  • debit purchases and credit accounts payable
  • debit office supplies and credit accounts payable
  • credit office supplies and debit accounts payable
A

Debit office supplies and credit accounts payable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

A ledger is a book of:

  • original entry
  • accounts
  • accounting statements
  • trial balances
A

accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

An entry on the debit side of a liability account indicates the account has been:

  • increased
  • decreased
  • footed
  • balanced
A

decreased

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

An entry made on the debit side of the proprietorship account indicates that the account has been:

  • increased
  • decreased
  • footed
  • balanced
A

decreased

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

An entry made on the debit side of an expense account indicates that the account has been:

  • increased
  • decreased
  • footed
  • balanced
A

increased

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The beginning balance in the supplies account 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?

A

$1,100.00

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

An entry made on the debit side of an asset account indicates that the account has been:

  • increased
  • decreased
  • footed
  • balanced
A

increased

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The things of value owned by a business are:

  • assets
  • capital
  • revenue
  • liabilities
A

assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

An accounting year ending on some date other than December 31st is called:

  • current year
  • calendar year
  • fiscal year
  • physical year
A

fiscal year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A person to whom a debt is owed is called a:

  • debtor
  • creditor
  • debt
  • credit
A

creditor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

A plant asset was purchased by the funeral home costing $8,000. It has a useful life of 3 years and a salvage value of $2,000. Using the straight line method of depreciation, what would be the yearly amount of depreciation?

A

$2,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Which of these does not appear on the Balance Sheet?

  • Assets
  • Liabilities
  • Expenses
  • Proprietorship
A

Expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Liabilities are all things a funeral home:

  • owes
  • owns
  • spends
  • sells
A

owes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

A Profit and Loss Statement can be prepared:

  • only once a month
  • only once every three months
  • only once every 6 months
  • at any time
A

at any time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

An entry on the credit side of an account indicates the account has been:

  • increased
  • decreased
  • footed
  • balanced
A

increased

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

When cash is spent in the acquisition of an asset the net worth of a business is:

  • increased
  • decreased
  • footed
  • not affected
A

not affected

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

The process of recording information in the ledger is called:

  • journalizing
  • balancing
  • posting
  • footing
A

posting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Accounts Receivable is a/an:

  • asset account
  • liability account
  • capital account
  • revenue account
A

asset account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Another term for Profit and Loss Statement is:

  • Balance Sheet
  • Income Statement
  • Statement of Financial Condition
  • Trial Balance
A

Income Statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

The amount of revenue from the sale of funeral services would be shown on the:

  • Balance Sheet
  • Profit and Loss Statement
  • Statement of Financial Condition
  • Statement of Assets and LIabilites
A

Profit and Loss Statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

The right side of a standard account is called the:

  • profit side
  • debit side
  • credit side
  • loss side
A

credit side

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The totaling of a column in a journal or ledger account is called:

  • journalizing
  • footing
  • posting
  • closing
A

footing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Advertising expense would be reflected on the:

  • Balance Sheet
  • Statement of Owner’s Equity
  • Income Statement
  • Statement of Financial Condition
A

Income Statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

The accounts payable would be shown on the:

  • Profit and Loss Statement
  • Balance Sheet
  • Accounts Receivable Ledger
  • Income Statement
A

Balance Sheet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

A group pf accounts constitutes as a/an:

  • ledger
  • journal
  • posting
  • special journal
A

ledger

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

If the total operating expenses section of the income statement is smaller than the total of the income section, the difference is:

  • net worth
  • net loss
  • gross profit
  • net profit
A

net profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Expense means a/an:

  • increase in owner’s equity
  • decrease in owner’s equity
  • increase in an asset
  • increase in sales
A

decrease in owner’s equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Which of the following accounts would be used to assist the accountant in an adjusting entry involving depreciation:

  • Automobile
  • Automobile Expense
  • Accumulated Depreciation
  • Allowance for doubtful accounts
A

Accumulated Depreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

The difference between the two sides of the account is called the:

  • account number
  • account balance
  • account schedule
  • net profit
A

account balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

The title of an account which would normally have a credit balance is:

  • cash
  • accounts receivable
  • advertising expense
  • accounts payable
A

accounts payable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

An increase in proprietorship as the result of a business transaction is a/an:

  • asset
  • liability
  • net worth
  • income
A

Income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

A list of accounts that shows the arrangement of the accounts in the ledger is called:

  • Trial Balance
  • Balance Sheet
  • Chart of Accounts
  • Accounts Receivable Ledger
A

Chart of Accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Double entry book keeping means an entry was made:

  • in a double book
  • in a journal and ledger
  • as an asset and a liability
  • as a debit and credit
A

as a debit and credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

The proprietorship of a business may be increased by:

  • net income and borrowing from banks
  • net income and investment of assets in the business by the owner
  • collection of accounts receivable and borrowing from banks
  • borrowing from the banks and purchases of assets on credit.
A

net income and investment of assets in the business by the owner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

The proprietorship of a business may be decreased by:

  • net income and borrowing from banks
  • net income and investment of assets in the business by the owner
  • collection of accounts receivable and borrowing from banks
  • expenses and withdrawals of assets from the business by the owner.
A

expenses and withdrawals of assets from the business by the owner.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

To establish a petty cash fund, one would:

  • debit cash and credit petty cash
  • debit accounts payable and credit cash
  • debit petty cash and credit cash
  • debit cash and credit accounts payable
A

debit petty cash and credit cash

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

The abbreviation for “debit” is:

  • Db.
  • Dr.
  • Dt.
  • Dbt.
A

Dr.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

The abbreviation for “credit” is:

  • Cd.
  • Ct.
  • Cr.
  • Cred.
A

Cr.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

A person who signs a check or draft ordering payment to be made is called the:

  • drawee
  • drawer
  • payee
  • maker
A

drawer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

A person or concern, usually a bank, that has been ordered to make a payment on a check or draft is called the:

  • drawee
  • drawer
  • payee
  • maker
A

drawee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

A person or company who will receive payment on a promissory note, check, or draft or money order is called the:

  • drawee
  • drawer
  • payee
  • maker
A

payee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

FICA refers to:

  • federal income tax
  • state income tax
  • city tax
  • social security
A

social security

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Property of a relatively permanent nature used in the operation of a business and not intended for resale is called:

  • current asset
  • fixed asset
  • current liability
  • fixed liability
A

fixed asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Debts that are not due and payable within a year are called:

  • current assets
  • fixed assets
  • current liabilities
  • fixed liabilities
A

fixed liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

The difference between cost of goods sold and their selling price is called:

  • net profit
  • gross profit
  • ending inventory
  • cost of goods available for sale
A

gross profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

The excess of current assets over current liabilities is called:

  • working capital
  • total capital
  • net worth
  • overhead
A

working capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

A written promise of the customer to pay the business a sum of money at a future date is called a/an:

  • note payable
  • note receivable
  • accounts payable
  • accounts receivable
A

note receivable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Which of these does not qualify as a current asset?

  • Cash
  • Accounts receivable
  • Office Supplies
  • Land
A

Land

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

A synonym for fair wear and tear of a durable asset is:

  • obsolescence
  • antiquated
  • depreciation
  • redundant
A

depreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

A language of business employed to communicate financial information based upon the recording, classification, summarization, and interpretation of financial data is called:

  • accounting
  • budgeting
  • management
  • merchandising
A

Accounting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Assets= Liabilities + Owner’s Equity is the:

  • formula for determining net worth
  • accounting equation
  • formula for GAAP
  • expanded accounting equation
A

accounting equation

57
Q

The increase in net worth due to the excess of income over costs and expenses is called:

  • principal
  • loss
  • profit
  • overhead
A

profit

58
Q

Money paid for the use of money is called:

  • interest
  • bad debts
  • principal
  • petty cash
A

interest

59
Q

The difference between net sales and cost of goods sold:

  • principal
  • interest
  • sales tax
  • gross margin
A

gross margin

60
Q

Goods purchased for resale at a profit:

  • supplies
  • capital
  • fixed assets
  • merchandise
A

merchandise

61
Q

A disbursement is a:

  • budget
  • payment
  • receipt
  • footing
A

payment

62
Q

What would be the closing entry to close the revenue account?

  • Debit expense and revenue summary, credit revenue
  • Debit revenue, credit expenses
  • Debit revenue, credit expense and revenue summary
  • Debit capital, credit revenue
A

Debit revenue, credit expenses and revenue summary

63
Q

Income received, but not yet earned is:

  • a bad debt
  • net profit
  • deferred income
  • interest
A

deferred income

64
Q

A paper showing quantity, description, prices of items, total amount of purchase, and terms of payment is a/an:

  • invoice
  • ledger
  • journal
  • deposit slip
A

invoice

65
Q

One who has made a sale is called a/an:

  • consignor
  • maker
  • payee
  • vendor
A

vendor

66
Q

A estimate of revenue and probable expense for a given period of time is a:

  • balance sheet
  • bank statement
  • budget
  • bill
A

budget

67
Q

The person or business concern to whom a shipment is made is a:

  • vendee
  • consignee
  • payee
  • drawee
A

consignee

68
Q

A distribution of profits of a corporation to its stockholders as declared by the board of director is:

  • gross earnings
  • interest
  • investment
  • dividend
A

dividend

69
Q

The person who orders the bank to make payment of a financial instrument is properly termed a/an:

  • payee
  • drawee
  • drawer
  • endorser
A

drawer

70
Q

The sole owner of a business is a:

  • maker
  • drawer
  • proprietor
  • partner
A

proprietor

71
Q

A fund of currency and coin establishment for the payment of small amounts of money is:

  • accounts payable
  • petty cash
  • fixed assets
  • drawing account
A

petty cash

72
Q

The difference between total sales and sales returns and allowances is:

  • net profit
  • net sales
  • net worth
  • net loss
A

net sales

73
Q

The amount added to the cost of an article to determine the selling price of that article is the:

  • mark-up
  • other income
  • net profit
  • interest
A

Mark-up

74
Q

A total, written in small pencil figures, under the last entry in a column is the:

  • assets
  • balance
  • journalizing
  • footing
A

footing

75
Q

A double line under the last entry on a T-account means:

  • the entry is complete
  • there is more to do on the entry
  • do not post this entry
  • the entry is correct
A

the entry is complete

76
Q

Increases in the owner’s equity resulting from business operation is known as:

  • interest
  • principle
  • overhead
  • income
A

income

77
Q

That portion of a plant assets original cost that cannot be depreciated is called:

  • mark-up
  • cost
  • scrap value
  • take home pay
A

scrap value

78
Q

A decrease in net worth due to excess of costs and expenses over income is:

  • proprietorship
  • retained earnings
  • take home pay
  • loss
A

loss

79
Q

The merchandise that a business keeps on hand for sale is the:

  • inventory
  • fixed assets
  • overhead
  • supplies
A

inventory

80
Q

Which of the following represents the difference between the total assets and total liabilities?

  1. Owner’s Equity
  2. Net Worth
  3. Net Income
  4. Capital
  • 1 only
  • 1 & 2 only
  • 1,2,&4 only
  • 1,3,&4 only
A

1,2,& 4 only

81
Q

The holder or person owning stock in a corporation is the:

  • accountant
  • maker
  • stockholder
  • director
A

stockholder

82
Q

At the end of the month, a funeral home’s assets totaled $50,000; the liabilities totaled $20,000; revenue for the month totaled $6,000; and the total of the expenses amounted to $4,000. Which of the following statements are true?

  1. owner’s equity= $70,000
  2. owner’s equity = $30,000
  3. net income = $2,000
  4. net loss =
  • 1 & 2
  • 2 & 3
  • 1 & 4
  • 2 & 4
A

2 & 3

83
Q

The basic accounting theory is based on:

  • single entry
  • double entry
  • triple entry
  • both a & b
A

double entry

84
Q

The acronym REID is used when:

  • closing temporary accounts
  • making adjustments to the ledger
  • correcting journal entries
  • posting journal entries to the ledger
A

closing temporary accounts

85
Q

The period of time required to purchase goods and services and turn them back into cash is called:

  • the accounting cycle
  • a fiscal year
  • the normal operating cycle
  • a calendar year
A

the normal operating cycle

86
Q

A ledger is a book of:

  • accounting statements
  • trial balance
  • original entry
  • accounts
A

accounts

87
Q

An entry on the debit side of the owner’s equity indicates that the account has been:

  • increased
  • decreased
  • neither
  • both
A

decreased

88
Q

An entry on the credit side of an expense account indicates the account has been:

  • adjusted
  • closed
  • increased
  • balanced
A

closed

89
Q

The book of original entry is in:

  • alpha-numeric order
  • chronological order
  • numeric order
  • highest to lowest order
A

chronological order

90
Q

The debts one owes are:

  • assets
  • liabilities
  • income
  • expenses
A

liabilities

91
Q

The things one owns are:

  • capital accounts
  • assets
  • liabilities
  • revenues
A

assets

92
Q

Sales minus cost of goods sold equals:

  • net profit
  • gross profit
  • overhead
  • operation expenses
A

gross profit

93
Q

The amount of depreciation taken during the current fiscal year is properly termed:

  • accumulated depreciation
  • depreciation expense
  • current depreciation
  • cumulative depreciation
A

depreciation expense

94
Q

The decrease in the value of a fixed asset is called:

  • a discount
  • an obsolescence
  • depreciation
  • credit
A

depreciation

95
Q

The process of recording information in the ledger is called:

  • journalizing
  • balancing
  • posting
  • editing
A

posting

96
Q

sThe primary purpose of a business is:

  • sales
  • service
  • prestige
  • profit
A

profit

97
Q

The only time the debit side of the revenue account is used is when you make:

  • adjusting entries
  • posting entries
  • journalizing entries
  • closing entries
A

closing entries

98
Q

When cash is spent in the acquisition of an asset the impact on the accounting equation is:

  • the asset cash is debited
  • the asset cash is credited
  • the new asset is credited
  • owner’s equity is debited
A

the asset cash is credited

99
Q

An entry on the credit side of a liability account indicates that the account has been:

  • increased
  • decreased
  • balanced
  • audited
A

increased

100
Q

Accounts payable is a/an:

  • asset account
  • liability account
  • owner’s equity account
  • expense account
A

liability account

101
Q

Good will is classified as a/an:

  • intangible asset
  • liability account
  • revenue account
  • tangible asset
A

intangible asset

102
Q

Another name for Profit and Loss Statement is:

  • Balance Sheet
  • Income Statement
  • Statement of Financial Condition
  • Work Sheet
A

Income Statement

103
Q

The amount of income from the sale of funeral services would be shown on which formal financial statement?

  • Balance Sheet
  • Profit and Loss Statement
  • Work Sheets
  • Trial Balance
A

Profit and Loss Statement

104
Q

The left side of a standard account is called the:

  • credit side
  • debit side
  • profit side
  • sales side
A

debit side

105
Q

Income earned but not received is called:

  • fiscal income
  • accrued income
  • deferred income
  • future income
A

accrued income

106
Q

The totaling of a column of a journal or ledger is called:

  • journalizing
  • footing
  • summarizing
  • posting
A

footing

107
Q

The cost of operating a business is called:

  • accounts payable
  • fixed liabilities
  • overhead
  • revenue
A

overhead

108
Q

Working capital is a measure of:

  • liquidity
  • profitability
  • leverage
  • investing activities
A

liquidity

109
Q

The debit side of the T-account is:

  • plus side
  • minus side
  • right side
  • left side
A

left side

110
Q

A book in which the daily transaction of a business are first written is the:

  • ledger
  • schedule
  • index
  • journal
A

journal

111
Q

The credit side of the T-account is:

  • plus side
  • minus side
  • right side
  • left side
A

right side

112
Q

A decrease in owners equity resulting from a business transaction is a/an:

  • expense
  • liability
  • net worth
  • income
A

expense

113
Q

An increase to which of the accounts will increase owner’s equity?

  • Account Payable
  • Drawing
  • Client Fees
  • Rent Expense
A

Client Fees

114
Q

A term which is used synonymously with operating expenses is:

  • net sales
  • overhead
  • gross profit
  • cost of goods sold
A

Overhead

115
Q

Accounts receivable are examples of:

  • assets
  • liabilities
  • proprietorship
  • income
A

assets

116
Q

Checks returned to the depositor that have been paid by the bank are:

  • canceled checks
  • deposit checks
  • order checks
  • outstanding checks
A

canceled checks

117
Q

A check that has been issued but not presented for payment to a bank is called:

  • cancelled check
  • deposited check
  • order check
  • outstanding check
A

outstanding check

118
Q

Accounts receivable which are uncollectable are:

  • incurred income
  • accrued income
  • fixed assets
  • bad debt
A

bad debts

119
Q

A ledger must contain:

  • assets
  • liabilities
  • all accounts
  • cash disbursed
A

all accounts

120
Q

A loan from a bank secured by property is:

  • an asset
  • a note receivable
  • a mortgage payable
  • an account payable
A

a mortgage payable

121
Q

Salary expense is considered to be:

  • a cost of goods sold
  • capitalization
  • an operating expense
  • fixed expense
A

an operating expense

122
Q

Posting is a/an:

  • form of advertising
  • transportation of figures
  • recording of a liability
  • transfer of figures from the journal to the ledger
A

Transfer of figures from the journal to the ledger

123
Q

When delivery revenue is earned on account, which accounts increase and decrease?

  • Cash increases and revenue increases
  • Accounts receivable increases and revenues increases
  • Accounts receivable increases and revenues decreases
  • Accounts receivable decreases and revenues decreases
A

Accounts receivable increases and revenues increases

124
Q

A special fund for use in disbursing small sums of money is called a/an:

  • petty cash fund
  • working fund
  • impress fund
  • loan fund
A

petty cash fund

125
Q

A journal designed for recording a particular type of transaction is known as a/an:

  • general ledger
  • general journal
  • special journal
  • combination journal
A

special journal

126
Q

If a funeral home sells a funeral service on a 30 day account, the entry to record the transaction would be to:

  • debit sales; credit accounts receivable
  • debit accounts receivable; credit sales
  • debit accounts payable; credit purchases
  • debit notes receivable; credit sales
A

Debit accounts receivable; credit sales

127
Q

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 cash
  • debit cash; credit sales
A

debit cash; credit accounts receivable

128
Q

If a funeral director purchases caskets from a casket manufacturer on a 30 day account, he would record the transaction as follows:

  • debit sales; credit purchases
  • debit purchases; credit cash
  • debit purchases; credit accounts receivable
  • debit purchases; credit accounts payable
A

debit purchases; credit accounts payable

129
Q

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?

  • $2000
  • $3500
  • $5000
  • $6500
A

$5000

130
Q

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:

  • $569.41
  • $629.14
  • $779.14
  • $869.41
A

$779.14

131
Q

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?

  • $329
  • $315.85
  • $350
  • $294
A

$294

132
Q

Liability accounts are identified by the account title followed by the word:

  • expense
  • revenue
  • payable
  • drawing
A

payable

133
Q

Expenses are listed on which of the following reports:

  1. Profit and Loss Statement
  2. Statement of Financial Condition
  3. Income Statement
  4. Balance Sheet
  • 1 & 2
  • 1 & 3
  • 2 & 4
  • 3 & 4
A

1 & 3

134
Q

The report that shows the financial condition of the business at a point in time is called the:

  1. Income Statement
  2. Statement of Financial Condition
  3. Balance Sheet
  4. Profit and Loss Statement
  • 1 & 2
  • 2 & 3
  • 1 & 4
  • 3 & 4
A

2 & 3

135
Q

The accounting equation may be stated as:

  1. liabilities = assets + owner’s equity
  2. assets + liabilities = owner’s equity
  3. assets= liabilities + owner’s equity
  4. assets - liabilities = owner’s equity
  • 1 & 2
  • 1 & 3
  • 2 & 4
  • 3 & 4
A

3 & 4

136
Q

When you recognize revenue when it is earned, and expenses when they are incurred you are operating under the:

  • cash basis of accounting
  • modified cash basis of accounting
  • accrual basis of accounting
  • fiscal basis of accounting
A

accrual basis of accounting

137
Q

The account that provides a current or future benefit to the business is properly termed:

  • a liability account
  • a drawing account
  • an expense account
  • an asset account
A

an asset account

138
Q

Methods of depreciation that allow the business to recover the cost early in the life of the asset include:

  1. double declining balance
  2. straight line depreciation
  3. sum of the year’s digits
  4. accumulated depreciation
  • 1 & 3
  • 2 & 3
  • 1 & 4
  • 2 & 4
A

1 & 3

Mors 200 Arts Final (123 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions