NBE ARTS| 563 questions| with complete solutions

Form W - 4 is a(n) correct answer: Employee's withholding allowance certificate A trial balance of the general ledger accounts taken after the temporary owner's equity accounts have been closed is referred to as: correct answer: Postclosing trial balance Anything of value owned is considered: correct answer: An asset If the total of expenses is smaller than the total of revenues, the difference is termed: correct answer: Net profit The legal obligation of a business to pay a debt is called a(n): correct answer: Ability Which of the following lists the proper order of accounting procedures? correct answer: Journal, Ledger, Trial balance, Financial statements The basic accounting equation is: correct answer: Assets = Liabilities + Capital The steps involved in handling all of the transactions and events completed during an account period, beginning with placing the data in a book of original entry and ending with a postclosing trial balance, are referred to collectively as the: correct answer: Accounting cycle The type of ledger that contains all the accounts shown in a trial balance is known as: correct answer: A general ledger Gross sales minus sales returns and allowances minus discounts on sales yields: correct answer: Net sales The process of determining whether the amount of cash, both on hand and in bank, is the same as amount entered in the accounting records is called: A. proving the bank statement B. proving statements of payments C. proving disimbursments D. proving the cash correct answer: Proving the cash Money paid for the use of money is called: correct answer: Interest The process of allocating the cost of plant and equipment to the periods expected to benefit from the use of these assets is called: correct answer: Depreciation accounting What is the interest on a $ 1,000 note for 1 month at an 8% annual interest rate? correct answer: $6.67 Which of the following accounts normally has a credit bal