accounting chapter 14 – Flashcards
37 test answers
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a dividends account has a normal debit balance and is increased by a debit
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true
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a group of persons elected by the stockholders to manage a corporation is called a board of direstors
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true
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a board of directors distributes earnings of a corporation to stockholsers by declaring a dividend
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true
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a declared dividend is classified as an expense
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false
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the accounts used to record the declaration of a dividend are dividends payable and dividends expense
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false
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when a declared dividend is paid , dividends payable is debited
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true
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the purpose of a worksheet is to plan adjustments and summarize the info necessary to prepare financial statemants
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true
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the steps for preparing a worksheet are similar for proprietorships and corporation
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true
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the general ledger account balances are charged when the adjustments are entered on the work sheet
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false
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the adjustment for merchandise inventory is common for all buisness
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false
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The supplies office account must be adjusted to show the expense of the supplies that are used during the year
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true
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the prepaid insurance acccount is adjusted to show the value of insurance that has been used
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true
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during a fiscal period the amount of merchandise on hand increases and decreases
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true
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most accounts needing adjustment at the end of a fiscal period have a related temperary account
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true
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the risk of uncollectible accounts should be recored as an expense in the same accounting period that the revenue is earned
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true
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the account allowence for uncollectible accounts is a contra account
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true
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many buisnesses use a percentage of total sales on account to estimate uncollectible accounts expense
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true
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assets that will be used for a number of years in the operation of a buisness are called current assets
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false
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accumulated depreciation is the depreiation expense the has been recorded since the purchase of a plany asset
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true
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federal income tax is an expense of a corporation
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true
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when a corporation makes the quarterly payment of estimated federal income tax, the cash account is credited
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true
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at the begining of a fiscal period plus office supplies bought during the fiscal period
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the supplies office amount in a worksheets trial balance debit column represents the value of supplies
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supplies office and supplies expense
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the 2 accounts used to adjust the office supplies account are
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an expense
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the portion of the insurance premiums that has expired during a fiscal period is classified as
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prepaid insurance and insurance expense
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the 2 accounts used to adjust the prepaid insurance account are
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mechandise inventory
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the amount of goods on hand for sale to costumers is called
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at the begining of a fiscal period
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the merchandise inventory amount in a work sheets trial balance debit volumn represents the mercandise inventory
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merchandise inventory and supplies
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the 2 accounts used to adjust the merchandise inventory account are
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decrease in merchandise inventory
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The income summary account in a work sheets adjustments debit column represents the
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matching expenses and revenue
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recording expenses in the accounting period in which the expenses contibute to earning revenue is an application of the accounting concept
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accounts recievable and accounts recievable expense
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the 2 accounts used to adjust uncollectible accounts are
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accumulated depreciation store equiptment ansd depreciation expense store equitment
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the 2 accounts used to adjust the depreciation of store equiptment are
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federal income tax payalbe and federal income tax expense
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the 2 accounts used to record the adjustment for federal income tax are
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