The bank statement for a checking account normally shows the
a. amounts of deposits to be made.
b. amount of deposits and other credits added during the period.
c. checks written but not yet cashed.
d. amounts to be collected by the bank for the depositor’s account.
The petty cash payments record indicates classified expenditures as follows:
Automobile Expense, $20; Supplies Expense, $12; Postage Expense, $6; and
Miscellaneous Expense, $5. The journal entry to replenish the petty cash fund would
include a credit to Cash for
a. $38.
b. $5.
c. $11.
d. $43.
A self-employment tax is required of an individual who owns his or her own business
and makes
a. $1 or more.
b. $200 or more.
c. $400 or more.
d. $1,000 or more.
Once an amount has been posted to the general ledger account from the combination
journal, what is entered in the “Post. Ref.” column of the combination journal?
a. the abbreviation “CJ”
b. your initials
c. a check mark
d. the account number
Service revenue received in cash is entered by
a. debiting Cash and crediting Service Revenue.
b. debiting Service Revenue and crediting Cash.
c. debiting Cash and crediting Accounts Payable.
d. debiting Accounts Payable and crediting Cash.
The column totals of the combination journal for Davis Manufacturing are: Cash Debit,
$1,500; Cash Credit, $1,3250; General Debit, $8620; General Credit, $1,300. If the
totals are correct, and the Wages Expense is the only other column, what must be the
total of the Wages Expense Debit column?
a. $171.50
b. $260.30
c. $431.80
d. $1,039.70
A debit to Accounts Receivable for $50 and a credit to Cash for $50 would be an
accurate journal entry to record
a. electronic funds transfers (EFTs).
b. not sufficient funds (NSF) checks.
c. petty cash.
d. ATM deposits.
Stephen purchased office supplies for $800 in cash. This transaction would
a. increase assets and increase owner’s equity.
b. increase one asset and decrease another asset.
c. increase assets and increase liabilities.
d. decrease assets and decrease liabilities.
The payroll register for the week ended April 15 for Ultimate Tanning Spa indicates
gross earnings of $4,000 and total deductions of $1,200. The journal entry for the
payroll for this week would include which of the following credit amounts to Cash?
a. $1,200
b. $2,800
c. $4,000
d. $5,200
After the closing entries have been posted, which of the following accounts would NOT
have a balance?
a. Miscellaneous Expense
b. Accumulated Depreciation-Equipment
c. Accounts Payable
d. Supplies
A cash balance may be computed
a. daily.
b. weekly.
c. at the end of the accounting period.
d. whenever desired.
Which of the following does NOT use nonprofit accounting guidelines and procedures?
a. proprietorships
b. hospitals
c. educational institutions
d. churches
Copies of sales tickets or sales invoices issued to customers or clients provide
information about
a. sales of goods or services.
b. purchases of goods or services.
c. cash receipts.
d. cash payments.
Which phase of the accounting process involves recognizing the effect of transactions
on assets, liabilities, owner’s equity, revenue, and expenses of a business?
a. input
b. processing
c. output
d. summarizing
An Employer Identification Number (EIN) is obtained by the employer from the
a. nearest Federal Reserve Bank.
b. CIA.
c. Internal Revenue Service.
d. nearest local federally insured bank.
Owner’s equity at the start of the period is $35,000; net income for the period is
$30,000; the total investments by the owner is $15,000; and total withdrawals by the
owner is $5,000. The owner’s equity at the end of the period is
a. $80,000.
b. $75,000.
c. $85,000.
d. $40,000.
Payment of a telephone bill represents an increase in a(n)
a. asset.
b. liability.
c. revenue.
d. expense.
Each person authorized to sign checks must sign a(n) ____________________.
Insert in the blank for each statement either the word “debit” or “credit.”
A journal with Debit and Credit columns for Cash, as well as General Debit and
General Credit columns, is called a general journal.
The employer must pay the amount owed for Social Security and Medicare by the
business plus the amount withheld from the employee to the IRS.
The purpose of a trial balance is to prove that the totals of the debit and credit balances
in the ledger accounts are equal.
Craig deposits $6,000 in an account to start a new business. He should debit Cash and
credit his capital account.