Adjusting Entries and General Ledger Accounts Quiz
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Questions and Answers

What are journal entries recorded to update general ledger accounts at the end of a fiscal period called?

  • Adjusting entries (correct)
  • Closing entries
  • Cash receipts journal
  • Capital stock
  • What is the difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts, called?

  • Cash short
  • Cash discount
  • Cash over
  • Book value of accounts receivable (correct)
  • What is the use of ethics in making business decisions called?

  • Business ethics (correct)
  • Capital stock
  • Cash sale
  • Capital
  • What is the account used to summarize the owner's equity in a business called?

    <p>Capital</p> Signup and view all the answers

    What is the total shares of ownership in a corporation called?

    <p>Capital stock</p> Signup and view all the answers

    What is a statement that guides the ethical behavior of a company and its employees called?

    <p>Code of conduct</p> Signup and view all the answers

    What is the purpose of a debit memorandum?

    <p>To notify a depositor of a decrease in their account balance due to a debit transaction</p> Signup and view all the answers

    Which of the following is a financial ratio that compares a company's total debt to its total assets?

    <p>Debt ratio</p> Signup and view all the answers

    What is the purpose of a commercial invoice?

    <p>To provide a detailed listing and description of merchandise sold, including prices and terms</p> Signup and view all the answers

    What is the purpose of a debit card?

    <p>To make electronic transactions by debiting funds from a bank account</p> Signup and view all the answers

    What is the definition of a debtor?

    <p>A person or entity that owes money to another party</p> Signup and view all the answers

    What is the definition of a debit?

    <p>An entry on the left side of an account, indicating an increase in assets or a decrease in liabilities or owner's equity</p> Signup and view all the answers

    What is a restrictive endorsement on a negotiable instrument?

    <p>An endorsement that limits the further negotiation or transfer of the instrument to a specific individual or purpose</p> Signup and view all the answers

    What is a retail merchandising business?

    <p>A business that sells goods directly to consumers for personal use or consumption, typically through retail stores or online channels</p> Signup and view all the answers

    What are retained earnings?

    <p>The portion of a corporation's net income that is retained and reinvested in the business rather than distributed as dividends to shareholders</p> Signup and view all the answers

    What is revenue?

    <p>The total income generated from the sale of goods or services during a specific period, contributing to the increase in the owner's equity of a business</p> Signup and view all the answers

    What is a reversing entry?

    <p>An accounting entry made at the beginning of a new accounting period to reverse the effects of certain adjusting entries made in the previous period</p> Signup and view all the answers

    What is a salary?

    <p>Compensation paid to employees for the services they provide to an organization, typically on a regular basis and expressed as a fixed annual or monthly amount</p> Signup and view all the answers

    What is the primary purpose of a sales invoice?

    <p>To detail the goods or services sold, quantity, price, and payment due date</p> Signup and view all the answers

    Which of the following is a special journal used to record sales transactions?

    <p>Sales journal</p> Signup and view all the answers

    What is the purpose of a sales discount?

    <p>To offer an incentive for prompt payment or bulk purchases</p> Signup and view all the answers

    What is the purpose of a schedule of accounts receivable?

    <p>To provide a detailed listing of all customer accounts and balances</p> Signup and view all the answers

    What is the primary purpose of a sales return?

    <p>To process the return of previously purchased goods or services</p> Signup and view all the answers

    What is the purpose of a schedule of accounts payable?

    <p>To provide a detailed listing of all vendor accounts and balances</p> Signup and view all the answers

    What does the term 'scrap value' represent for a depreciable asset?

    <p>The expected residual value at the end of its useful life</p> Signup and view all the answers

    What is a sight draft primarily used for in commercial transactions?

    <p>To facilitate prompt payment</p> Signup and view all the answers

    In what type of business are intangible services provided to customers?

    <p>Service business</p> Signup and view all the answers

    What is the purpose of a special amount column in accounting records?

    <p>To track amounts for a specific account</p> Signup and view all the answers

    What does a share of stock represent in a corporation?

    <p>A unit of ownership in the corporation</p> Signup and view all the answers

    Why is social security tax levied on employees and employers?

    <p>To fund the Social Security program benefits</p> Signup and view all the answers

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