(Appendix) The three types of business activities are operating activities, investing
activities, and financing activities.
A form of balance sheet that shows the liabilities and owner’s equity sections below the
assets section is called an account form of balance sheet.
Services on account increase a revenue account and increase the cash account.
The ____________________ is a method of accounting that combines aspects of the
cash and accrual methods. It uses the cash basis for recording revenues and most
expenses. Exceptions are made when cash is paid for assets with useful lives greater
than one accounting period.
A journal with special and general columns is called a combination journal.
All transactions must be posted before preparing a trial balance.
Self-employment tax is a contribution to the unemployment compensation program.
The account, ____________________, should be credited for the total income tax
withheld from an employee’s earnings.
Analyze the following transactions using the T account approach. Place the dollar
amount on the debit and credit sides. After all transactions have been recorded, foot the
accounts where necessary and enter the balance in the proper place.
____________________ provides pensions and disability benefits.