ACCOUNTING 101 EVALUATION EXAM ACTUAL
QUESTIONS AND SOLUTIONS RATED A+
✔✔For a journal entry to be complete, it must contain _________________. - ✔✔the
date, a debit entry, a credit entry, and an explanation. (p. 144 Quiz)
✔✔Transferring information from the journal to the ledger is called ______________. -
✔✔posting
✔✔What are some examples of source documents? - ✔✔Canceled checks, vendor
invoices, and receipts
✔✔Accounting cycle - ✔✔The sequence of steps in the accounting process completed
during the fiscal period. (p. 167)
✔✔Accrual - ✔✔Recognition of an expense or a revenue that has been incurred or
earned but has not yet been recorded. (p. 175)
✔✔Accrued wages - ✔✔Unpaid wages owed to employees for the time between the
end of the last pay period and the end of the fiscal period. (p. 175)
✔✔Adjusting entries - ✔✔Entries that bring the books up to date at the end of the fiscal
period. (p. 181)
✔✔Adjustments - ✔✔Internal transactions that bring ledger accounts up to date as a
planned part of the accounting procedure. (p. 170)
✔✔Book value or Carrying value - ✔✔The cost of an asset minus the accumulated
depreciation. (p. 173)
✔✔Contra account - ✔✔An account that is contrary to, or a deduction from, another
account; for example, Accumulated Depreciation, Equipment is listed as a deduction
from Equipment. (p. 172)
✔✔Depreciation - ✔✔An expense based on the expectation that an asset will gradually
decline in usefulness due to time, wear and tear, or obsolescence; the cost of the asset
is therefore spread out over its estimated useful life. A part of depreciation expense is
apportioned to each fiscal period (p. 171)
✔✔Fiscal period - ✔✔Any period of time covering a complete accounting cycle,
generally consisting of 12 consecutive months. (p. 167)
✔✔Fiscal year - ✔✔A fiscal period consisting of 12 consecutive months. (p. 167)
, ✔✔Matching principle - ✔✔The principle that the expenses for one time period are
matched up with the related revenues for the same time period. (p 181)
✔✔Mixed accounts - ✔✔Certain accounts that apper on the trial balance with balances
that are partly income statement amounts and partly balance sheet amounts--for
example, Prepaid Insurance and Insurance Expense. (p. 175)
✔✔Straight-line depreciation - ✔✔A means of calculating depreciation in which the cost
of an asset, less any trade-in value, is allocated evenly over the useful life of the asset.
(p. 171)
✔✔Work sheet - ✔✔A working paper used by accountants to record necessary
adjustments and provide up-to-date account balances needed to prepare the financial
statements. (p. 167)
✔✔The ____________ represents the sequence of steps in the accounting process. -
✔✔accounting cycle (p. 204 Quiz)
✔✔On the work sheet, assets are recorded in which column? - ✔✔Balance sheet, debit
(p. 204 Quiz)
✔✔Accrual basis of accounting - ✔✔An accounting method under which revenue is
recorded when it is earned, regardless of when it is received, and expenses are
recorded when they are incurred, regardless of when they are paid. (p. 235)
✔✔Cash basis of accounting - ✔✔An accounting method under which revenue is
recorded only when it is received in cash, and expenses ar recorded only when they are
paid in cash. (p. 234)
✔✔Closing entries - ✔✔
✔✔Income Summary account - ✔✔
✔✔Interim statements - ✔✔
✔✔Nominal (temporary-equity) accounts - ✔✔
✔✔Post-closing trial balance - ✔✔
✔✔Real (permanent) accounts - ✔✔
✔✔ATM (Automated Teller Machine) - ✔✔Machines that enable depositors to make
deposits, withdrawals, and transfers using a coded plastic card. (p. 274)
QUESTIONS AND SOLUTIONS RATED A+
✔✔For a journal entry to be complete, it must contain _________________. - ✔✔the
date, a debit entry, a credit entry, and an explanation. (p. 144 Quiz)
✔✔Transferring information from the journal to the ledger is called ______________. -
✔✔posting
✔✔What are some examples of source documents? - ✔✔Canceled checks, vendor
invoices, and receipts
✔✔Accounting cycle - ✔✔The sequence of steps in the accounting process completed
during the fiscal period. (p. 167)
✔✔Accrual - ✔✔Recognition of an expense or a revenue that has been incurred or
earned but has not yet been recorded. (p. 175)
✔✔Accrued wages - ✔✔Unpaid wages owed to employees for the time between the
end of the last pay period and the end of the fiscal period. (p. 175)
✔✔Adjusting entries - ✔✔Entries that bring the books up to date at the end of the fiscal
period. (p. 181)
✔✔Adjustments - ✔✔Internal transactions that bring ledger accounts up to date as a
planned part of the accounting procedure. (p. 170)
✔✔Book value or Carrying value - ✔✔The cost of an asset minus the accumulated
depreciation. (p. 173)
✔✔Contra account - ✔✔An account that is contrary to, or a deduction from, another
account; for example, Accumulated Depreciation, Equipment is listed as a deduction
from Equipment. (p. 172)
✔✔Depreciation - ✔✔An expense based on the expectation that an asset will gradually
decline in usefulness due to time, wear and tear, or obsolescence; the cost of the asset
is therefore spread out over its estimated useful life. A part of depreciation expense is
apportioned to each fiscal period (p. 171)
✔✔Fiscal period - ✔✔Any period of time covering a complete accounting cycle,
generally consisting of 12 consecutive months. (p. 167)
✔✔Fiscal year - ✔✔A fiscal period consisting of 12 consecutive months. (p. 167)
, ✔✔Matching principle - ✔✔The principle that the expenses for one time period are
matched up with the related revenues for the same time period. (p 181)
✔✔Mixed accounts - ✔✔Certain accounts that apper on the trial balance with balances
that are partly income statement amounts and partly balance sheet amounts--for
example, Prepaid Insurance and Insurance Expense. (p. 175)
✔✔Straight-line depreciation - ✔✔A means of calculating depreciation in which the cost
of an asset, less any trade-in value, is allocated evenly over the useful life of the asset.
(p. 171)
✔✔Work sheet - ✔✔A working paper used by accountants to record necessary
adjustments and provide up-to-date account balances needed to prepare the financial
statements. (p. 167)
✔✔The ____________ represents the sequence of steps in the accounting process. -
✔✔accounting cycle (p. 204 Quiz)
✔✔On the work sheet, assets are recorded in which column? - ✔✔Balance sheet, debit
(p. 204 Quiz)
✔✔Accrual basis of accounting - ✔✔An accounting method under which revenue is
recorded when it is earned, regardless of when it is received, and expenses are
recorded when they are incurred, regardless of when they are paid. (p. 235)
✔✔Cash basis of accounting - ✔✔An accounting method under which revenue is
recorded only when it is received in cash, and expenses ar recorded only when they are
paid in cash. (p. 234)
✔✔Closing entries - ✔✔
✔✔Income Summary account - ✔✔
✔✔Interim statements - ✔✔
✔✔Nominal (temporary-equity) accounts - ✔✔
✔✔Post-closing trial balance - ✔✔
✔✔Real (permanent) accounts - ✔✔
✔✔ATM (Automated Teller Machine) - ✔✔Machines that enable depositors to make
deposits, withdrawals, and transfers using a coded plastic card. (p. 274)
