Accounting Final

Which one of the following is NOT a form of business?

• Corporations

• Partnership

• CPA firm

• Sole Proprietorship

What is accounting primarily concerned with?

• Telling the results

• Deciding the meaning and importance of information in various reports.

• A system of gathering financial information about a business and reporting this information to users.

• Looking at events that have taken place and thinking about how they affect business.

Any accounting period of twelve months' duration is usually referred to as what?

• physical year

• operational year

• fiscal year

• calendar year

Jason purchased office equipment for $4,800 on account. This transaction would:

• increase one asset and decrease another asset

• increase assets and increase owner's equity

• increase assets and increase liabilities

• decrease assets and decrease liabilities

A T account has which of the following three major parts?

• a title, a current date, and a balance

• a debit side, a credit side, and a balance

• a title, a debit side, and a credit side

• a title, a debit side, and a total column

A debit:

• decreases assets

• increases liabilities

• is on the left side

• increases owner's equity

A chronological record of financial transactions expressed as debits and credits to accounts is provided by the:

• Journal

• balance sheet

• ledger

• income statement

What is a journal commonly referred to as in the context of accounting records?

• book of original entry

• ledger

• account

• cross-reference

If the book value of an asset is $12,500 and the accumulated depreciation is $3,500, what was the original cost of the asset?

• $16,000

• $9,500

• $7,500

• $9,000

What type of account is used with a related account to bring about a decrease in the net amount of the two account balances?

• adjusting account

• expense account

• ledger

• cross-reference