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Mortuary Management > Exam 1 Questions > Flashcards

Exam 1 Questions Flashcards

1
Q

True or False

An accounting period is based on the balance sheet

A

False

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2
Q

A calendar year is based on the months of _____________________

A

January 1 - December 31

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3
Q

The normal financial procedures that take place over a period of time are known as:

A

Accounting Cycle

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4
Q

When journalizing a transaction, the dollar amount for the ________ is recorded first.

A

debit

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5
Q

The accounting cycle takes place in a period of time called the _____________________.

A

accounting period

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6
Q

What separates each transaction recorded in the journal?

A

A blank line

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7
Q

When we transfer the transaction from the journal to the ledger the activity is called ______________

A

Posting

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8
Q

In the ledger, how are we able to determine the balance of an account?

A

Subtract credit / debit (lower from higher amount) and determine the difference between the two

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9
Q

The list of individual accounts on the worksheet, with their balances taken from the ledger is called the _____________

A

Trial Balance

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10
Q

True or False

In the trial balance, debits and credits do not have to be equal

A

False

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11
Q

To make a correction before posting

A
  1. Draw a line through incorrect entry
  2. Write correct info above
  3. Initial it
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12
Q

True or False

To make a correction after posting, draw a line through the error and write the correct figure above it. Change the running balance to reflect the corrected posting

A

True

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13
Q

A business transaction occurs and generate document in what step of the accounting cycle?

A

1st Step

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14
Q

Analyze and record business transactions into a journal occurs in what step of the accounting cycle?

A

2nd step

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15
Q

In step four of the accounting cycle a(n) ________________ is prepared.

A

Trial Balance

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16
Q

Which of the following is not a part of the worksheet?

A

Statement of Owner’s Equity

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17
Q

True or False

Adjustments from the worksheet are journalized in the same journal as step 2

A

True

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18
Q

Financial statements are prepared from the ___________

A

Worksheet

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19
Q

Which of the following are not included on the balance sheet section of the worksheet?

A

Expenses

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20
Q

True or False

The income statement only includes assets and liabilities

A

False

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21
Q

True or False

The balance sheet section totals on the worksheet do not match the formal balance sheet

A

True

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22
Q

The correct formula for the straight line method of depreciation consists of:

A

Cost of Equipment - Residual Value
_____________________________________
Estimated years of depreciation

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23
Q

The Formal Income Statement lists the following two account categories:

A

Revenue
Expenses

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24
Q

When accumulated depreciation is ___________ from equipment, the balance of the equipment is then _____________

A

Subtracted
Decreased

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25
Q

Withdrawals from the Owner’s Equity account:

A

reduces the balance

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26
Q

Journalizing and posting adjusting entries occurs in step ________

A

7

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27
Q

Step 8 in the accounting cycle consists of:

A

Journalizing and Posting Closing entries

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28
Q

Preparing a post closing trial balance occurs in step __________

A

9

29
Q

The Post Closing trial balance lists only _______________ accounts in the ledger and their balances after adjusting and closing entries have been posted

A

Permanent

30
Q

When the closing process is complete, the accounting equation will be reduced to:

A

Assets = Liabilities + Ending Capital

31
Q

Which endorsement consists of a mere signature and is the least secure?

A

Blank Endorsement

32
Q

Which endorsement designates a particular person to whom payment is to be made?

A

Special / Full Endorsement

33
Q

Which endorsement limits the liability of the endorser?

A

Qualified Endorsement

34
Q

Which endorsement prevents the use of the instrument for anything except the stated use?

A

Restrictive Endorsement

35
Q

The ___________ is defined as the one to whom the check is payable

A

Payee

36
Q

The _________ is defined as the one who pays the money to the payee

A

Drawee

37
Q

The __________ is defined as the one who writes the check

A

Drawer

38
Q

Which is not true of overtime pay?

It only applies to your bimonthly period
It is a federal law
Anything over 40 hours must be paid as overtime
It applies to a seven-day work period

A

It only applies to your bimonthly period

39
Q

________ is a program you pay into now for others and later others will pay you

A

FICA

40
Q

_______ is a federal tax that you pay to support the federal government

A

FIT

41
Q

_____________________ is paid by the employer and based on your job description rated on a scale of 1 to 10, should you become injured on the job

A

Worker’s Comp

42
Q

This pay is based on the number of hours you work and your hourly pay

A

Gross Pay

43
Q

2/10, n/30 means

A

2% discount if paid within 10 days
Net is paid in full in due within 30 days

44
Q

n/10, EOM means

A

No discount
Must pay full within 10 days after end of month

45
Q

This inventory system continually monitors the level of inventory -

A

Perpetual

46
Q

This inventory system is taken at the end of each accounting period, the cost of unsold goods is calculated

A

Periodic

47
Q

Revenue earned from the sale of merchandise to customers is known as

A

Gross Sales

48
Q

_____________ is a contra-revenue account with a debit balance

A

Sales Returns and Allowances (SRA)

49
Q

The formula for Net Sales is

A

Gross sales - Sales Discounts - SRA = Net Sales

50
Q

The sale of merchandise on account (EOM) is recorded in the special journal known as _____________

A

Sales Journal

51
Q

Paying cash is recorded in the special journal known as _______________

A

Cash Payments Journal

52
Q

Receiving cash from any source is recorded in the special journal known as ____________

A

Cash Receipts Journal

53
Q

Buying supplies / merchandise on account is recorded in the special journal known as ________________

A

Purchases Journal

54
Q

A ledger that contains only an account of a single type and is not listed on the chart of accounts is known as a _______________

A

Subsidiary Ledger

55
Q

The sum of the accounts receivable subsidiary ledger will equal the ending balance in accounts receivable, the controlling account in the general ledger. This is known as ____________

A

Proving

56
Q

When recording from the Sales Journal to the Accounts Receivable Subsidiary Ledger, which of these are true?

A

All of the above

57
Q

The Posting at EOM from the Sales Journal to the General Journal includes:

A

All of the above

58
Q

An account in the general ledger that accumulates the amount of sales tax owed to the government

A

Sales Tax Payable

59
Q

Sales Tax ___________ is a new account, it is a liability account in the general ledger with a credit balance

A

Payable

60
Q

The __________ account records all merchandise bought for resale. This account has a debit balance and is classified as a cost

A

Purchases

61
Q

The account that records a decrease in a buyer’s cost is a contra-cost account called the ___________ account

A

Return and Allowances

62
Q

The account that records a company’s discount is called the _____________ account

A

Purchases Discount

63
Q

The formula for Net Purchases is:

A

Purchases - Returns & Allowances - Purchases Discounts = Net Purchases

64
Q

Goods transported in bulk by truck, train, ship, or plane are known as ____________

A

Freight

65
Q

The shipping method in which the seller pays shipping charges and legal title passes to the buyer when goods reach their destination is known as _____________

A

FOB Destination

66
Q

The shipping method in which the buyer pays shipping charges and legal title passes to buyer when goods are shipped is known as ___________

A

FOB Shipping Point

67
Q

Which of the following are a component of the final Income Statement

A

All of the above

68
Q

True or False

Additional investment(s) by the owner would be added to his or her beginning capital amount

A

True

69
Q

True or False

The statement of owner’s equity is the same for a merchandise business as for a service firm

A

True

Mortuary Management (8 decks)

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