Part 1

Question 1

Basic accounting theory is based on

Answer 1

double entry

Question 2

The group of accounts which you debit when increased are

Answer 2

assets and expenses

Question 3

The group of accounts which you credit to increase are

Answer 3

liabilities and capital

Question 4

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

Answer 4

debit casket coach and credit accounts payable

Question 5

The payment of rent buy cash is recorded

Answer 5

debit rent expense and credit cash

Question 6

Purchase of office supplies on credit is recorded by

Answer 6

debit office supplies and credit accounts payable

Question 7

A ledgar is a book of

Answer 7

accounts

Question 8

An entry on the debit side of a liability account indicates the accounts had been

Answer 8

decreased

Question 9

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

Answer 9

decreased

Question 10

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

Answer 10

increased

Question 11

The beginning balance in the supplies account is $600, During the mouth 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?

Answer 11

$1100

Question 12

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

Answer 12

increased

Question 13

The things of value owned by a business are

Answer 13

assets

Question 14

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

Answer 14

fiscal year

Question 15

A person to whom a debit is owned is called a

Answer 15

creditor

Question 16

Which of these does not appear on the balance sheet

Answer 16

expenses

Question 17

Liabilities are all things a funeral director

Answer 17

owes

Question 18

a profit and loss statement can be prepared

Answer 18

at any time

Question 19

An entry on the credit side of a revenue account indicates the account has been

Answer 19

increased

Question 20

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

Answer 20

not affected

Question 21

The process of recording information in the ledger is caled

Answer 21

posting

Question 22

Accounts Receivable is a/an

Answer 22

asset account

Question 23

Another term for Profit and Loss Statement is

Answer 23

Income Statement

Question 24

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

Answer 24

Profit and Loss Statement

Question 25

The right side of a statement account is called the

Answer 25

credit side

Question 26

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

Answer 26

footing

Question 27

Advertising expense would be reflected on the

Answer 27

Income Statement

Question 28

The accounts payable account would be shows on the

Answer 28

Balance Sheet

Question 29

A group of accounts constitutes a/an

Answer 29

ledger

Question 30

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

Answer 30

drawee

Question 31

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

Answer 31

payee

Question 32

F.I.C.A refers to

Answer 32

Social secruity

Question 33

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

Answer 33

fixed asset

Question 34

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

Answer 34

fixed liablities

Question 35

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

Answer 35

gross profit

Question 36

the excess of current assets over current liabilities is called

Answer 36

working capital

Question 37

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

Answer 37

note recievable

Question 38

Goods purchased for resale at a profit

Answer 38

merchandise

Question 39

The difference between net sales and cost of goods sold

Answer 39

gross margin

Question 40

Money paid for the use of money is called

Answer 40

interest

Question 41

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

Answer 41

profit

Question 42

Assets= Liabilities+ Owner’s Equity is the

Answer 42

accounting equation

Question 43

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

Answer 43

accounting

Question 44

A synonym for fair wear and tear of a durable

Answer 44

depreciation

Question 45

Which of these does not qualify as a current asset?

Answer 45

land

Question 46

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

Answer 46

net profit

Question 47

Expense means a/ an

Answer 47

decrease in owners equity

Question 48

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

Answer 48

accumulated sepreation

Question 49

The difference between the two sides if an account is called

Answer 49

account balance

Question 50

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

Answer 50

accounts payable

Question 51

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

Answer 51

income

Question 52

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

Answer 52

Chart of Accounts

Question 53

Double entry bookkeeping means an entry is made

Answer 53

as a debit and credit

Question 54

The proprietorship of a business may be increase by

Answer 54

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

Question 55

The proprietorship of a business may be decrease by

Answer 55

expenses and withdrawals of assets from the business by the owner

Question 56

To establish a petty cash fund, one would

Answer 56

debit petty cash and credit cash

Question 57

The abbreviation for “debit” is

Answer 57

Dr.

Question 58

The abbreviation for “credit” is

Answer 58

Cr.

Question 59

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

Answer 59

drawer

Question 60

A disbursement is a

Answer 60

payment

Question 61

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

Answer 61

debit revenue, credit expense and revenue summary

Question 62

Income received but not yet earned is

Answer 62

deferred income

Question 63

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

Answer 63

invoice

Question 64

Income received but not earned is

Answer 64

Deferred income

Question 65

What would be the closing entry to close the revenue accounnt

Answer 65

debit revenue, credit expense and revue summary

Question 66

One who has made a sale is called a/ an

Answer 66

vendor

Question 67

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

Answer 67

budget

Question 68

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

Answer 68

consigness

Question 69

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

Answer 69

dividend

Question 70

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

Answer 70

drawer

Question 71

The sole owner of a business is a

Answer 71

proprietor

Question 72

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

Answer 72

petty cash

Question 73

The difference between total sales and sales returns and allowances is

Answer 73

net sales

Question 74

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

Answer 74

mark- up

Question 75

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

Answer 75

footing

Question 76

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

Answer 76

the entry is complete

Question 77

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

Answer 77

income