Debits and Credits(Quick Test #3)

1. Recording each transaction with a minimum of one debit and one credit is known as __________ -entry bookkeeping.

2. An entry on the left side of a T-account is a __________.

3. The journal entry to record depreciation is recorded in the __________ journal.

4. The entries recorded in the general journal are also posted to accounts in the __________ __________.

5. A listing of the names and numbers of the accounts that are available for recording transactions is the __________ of accounts.

6. A listing of all of the account balances to show that the total of the debit balances is equal to the total of the credit balances is a __________ __________.

7. Entries to bring the accounts up to the accrual basis of accounting prior to issuing the financial statements are known as __________ entries.

8. In a manual accounting system, the entries made at the end of the accounting year to the income statement accounts after the financial statements have been prepared are __________ entries.

9. The accounting equation for a corporation is assets = liabilities + stockholders’ __________.

10. Purchasing supplies on credit will be recorded with a credit to the account __________ __________.

11. Sales of merchandise and fees earned from providing services are examples of the income statement element __________.

12. A company providing services on credit will debit the account __________ __________.

13. The financial statement that has the form of the accounting equation is the __________ __________.

14. The word for a cost that has expired or has been matched with revenues is __________.

15. The income statement accounts are referred to as __________ accounts.

16. The sole proprietor’s drawing account is closed to the __________ account.

17. Revenues have the effect of causing owner’s or stockholders’ equity to __________.

18. When a company pays a bill by writing a check, the account Cash is __________.

19. The account that is debited when a sole proprietor withdraws some of the business’s cash for personal use is __________.

20. “Book of original entry” describes __________.

21. Accumulated Depreciation will be reported on which financial statement?

22. Under the accrual basis of accounting, a payment in late 2023 for the 2024 insurance expense will decrease the asset Cash and will __________.

23. Recording revenues when they are earned rather than when the money is received is part of which basis or method of accounting?

24. Generally, the balances in which accounts are closed at the end of the accounting year?

25. Under the accrual basis of accounting, which of the following will NOT cause a change in owner’s equity?

26. In a manual accounting system, at the end of the accounting year the balance in Depreciation Expense is closed to __________.

27. Which is NOT an expense on the income statement of a sole proprietorship?

28. Under the accrual basis of accounting, owner’s equity is increased by

29. Revenue accounts

30. Expense accounts

31. Inventory

32. Accounts Payable

33. R. Smith, Drawing

34. Accumulated Depreciation

35. Sales Returns and Allowances

36. Purchases (of merchandise for resale)

37. Purchase Discounts

38. Allowance for Doubtful Accounts

39. Contra-liability accounts

40. A sole proprietor’s owner’s equity balance was $10,000 at the beginning of the year and was $22,000 at the end of the year. During the year the owner invested $5,000 in the business and had withdrawn $24,000 for personal use. The sole proprietorship’s net income for the year was $__________.