Ch. 6 & 7 Quiz Flashcards
A blank endorsement makes a check payable to any bearer. T/F
true
Outstanding checks are checks issued that have not been presented to the bank for payment. T/F
true
Accounts that do no accumulate information across accounting periods but are closed, such as the drawing account and all income statement accounts.
temporary accounts
Accounts that accumulate information across accounting periods; all accounts reported on the balance sheet.
permanent accounts
A balance sheet in which the assets are on the left and liabilities and the owner’s equity sections are on the right.
account form of balance sheet
A balance sheet with separate categories for current assets; property, plant, and equipment; current liabilities; and long-term liabilities.
classified balance sheet
The steps involved in accounting for all of the business activities during an accounting period.
accounting cycle
Prepared after posting the closing entries to prove the equality of the debit and credit balances in the general ledger accounts.
post-closing trial balance
Assets, liabilities, and the owner’s capital account are permanent accounts. T/F
true
To close the drawing account with a debit balance, credit the account for its balance and debit the owner’s capital account. T/F
true
The depositor who orders the bank to pay a certain amount of money is known as the drawee. T/F
false
The steps involved in handling all of the transactions and events completed during an accounting period, beginning with placing data in a book of original entry and ending with a post-closing trial balance, are referred to collectively as the accounting cycle. T/F
true
In reconciling the bank statement, the outstanding checks are deducted from the balance shown on the bank statement. T/F
true
An endorsement where the depositor simply signs the back of the check, making the check payable to any bearer.
blank endorsement
The bank of which the check is drawn.
drawee
