Types of Major Accounts Part 2

Question 1

interest imcurred but not yet paid

Answer 1

Interest Payable

Question 2

salaries are earned by employees but not yet paid by the business

Answer 2

Salaries Payable

Question 3

utilities already used but not yet paid

Answer 3

Utilities Payable

Question 4

items related to income that was collected in advance before they were earned

Answer 4

Unearned Income

Question 5

the residual amount after deducting liabilities to assets

Answer 5

Owner’s Capital

Question 6

this account is used to record the temporary withdrawals of the owner during the period

Answer 6

Owner’s Drawing

Question 7

revenues earned from rendering services

Answer 7

Service Fee

Question 8

revenues earned from the sales of good

Answer 8

Sales

Question 9

revenues earned from the issuance of interest-bearing receivables

Answer 9

Interest Income

Question 10

income that is earned from the sales of assets, except inventory

Answer 10

Gains

Question 11

represents the value of inventories that have been sold during the accounting period

Answer 11

Cost of Sales or Cost of Good Sold

Question 12

represents the seller’s cost in delivering the goods to the customers

Answer 12

Freight- out

Question 13

represents the salaries earned by the employees by the services they have rendered

Answer 13

Salaries Expense

Question 14

represents the rentals that have been used up during the accounting period

Answer 14

Rent Expense

Question 15

the cost of utilities that have been used during the accounting period

Answer 15

Utility Expense

Question 16

represents the cost of supplies that have been used during the accounting period

Answer 16

Salaries Expense

Question 17

The number of estimated losses from uncollectible accounts receivable

Answer 17

Bad debts Expense

Question 18

the portion of the cost of a depreciable asset

Answer 18

Depreciation Expense

Question 19

represents the cost of promotional and marketing activities during the accounting period

Answer 19

Advertising Expense

Question 20

represents the cost of business and local taxes required by the government for the conduct of business

Answer 20

Taxes and Licences

Question 21

represents the necessary and ordinary cost of employees from getting to one workplace to another

Answer 21

Transportation Expense

Question 22

represents the cost incurred in traveling on business

Answer 22

Travel Expense

Question 23

represents the coat of borrowing money

Answer 23

Interest Expense

Question 24

represents various small expenditures that do not warrant separate presentation

Answer 24

Miscellaneous Expense