Knowledge Final Exam – Transactions & Statements

What entry needs to be made for inventory that is sold to the consumer?

When you have received payment for services performed/goods sold, what is created in the software?

How is the Accounts Receivable account increased?

A Credit Memo is an amount returned to an unhappy customer after they have paid their invoice.

When an inventory item is returned, what account is it coded to?

What is a supplier that is paid by the company for providing goods required to operate the business?

You enter a Bill, instead of an Expense, when the company has paid a vendor for items or services received.

What is an expense that needs to be passed on to the company’s customers?

What accounts in the Chart of Accounts are affected and how when you enter a bill payment from cash for inventory?

When applying a vendor credit before inventory is received, to what account should it be applied?

When adding an initial quantity for Inventory, create a Journal Entry to appropriate accounts.

What amounts are included in the cost of inventory? (Select all that apply.)

What does FIFO stand for?

Inventory Quantity Adjustments for inventory sold affects what accounts? (Select all that apply.)

What is ensured when reconciling the bank accounts? (Select all that apply.)

When should you “match” a transaction from the bank feed?

A Bank Feed is a connection between the accounting software and a financial institution that brings transactions into the software.

What is money that is moved from one account to another account within the business?

What accounts are affected when you record the monthly depreciation expense transaction? (Select all that apply.)

When selling a fixed asset, what accounts are affected? (Select all that apply.)

What is anything of substantial material value lasting longer than one year?

What costs make up the value of a fixed asset? (Select all that apply.)

A Note Payable is the amount of debt owed to the company by a customer.

What is the portion of the loan debt that is due in the next 12 months?

What accounts are affected when making a bill payment on a loan?

How do you record the current portion of long-term debt in the accounting software, and what accounts in the Chart of Accounts are affected?

The Wage Expense account is debited for what amount when you prepare the Payroll Journal Entry?

What journal entry is created that includes Federal Taxes Payable and State Income Taxes Payable?

When remitting a combined sales tax rate, the sales tax will be submitted only to the state.

What accounts are affected and how when recording this month’s portion of the prepaid Insurance expense?

What is the correct way to record a passive investment purchase?

What is an investment to the business?

How is the sale of an Investment Asset (for a loss) recorded?

Which of the following is an Owner Contribution? (Select all that apply.)

Which of the following is an Owner Distribution? (Select all that apply.)

What are some examples of an Equity account? (Select all that apply.)

What is the cumulative earnings from all previous years?

When creating a closing entry for Owner Distribution, what accounts in the Chart of Accounts are affected and how?

The Balance Sheet, Income Statement, and Statement of Cash Flows show the net income.

Comparing it to the previous months is the best way to discover errors in which financial report?

What are the sections on the Balance Sheet and in what order do they appear?

In what order do the sections appear on the Statement of Cash Flows?

You should use the Cash Basis of Accounting for reporting whenever possible.

Notes Payable and Owner’s Equity are included in what section of the Statement of Cash Flows?

What is the best way to begin preparing the Financial Statements?

When reviewing the General Ledger, how can you be sure that the transactions in the checking account are correct?

What reports can you run that shows the total Accounts Receivable? (Select all that apply.)

How do you check the balance of the Cash at End of Period on the Statement of Cash Flows?

What are the Ps of presenting the financial statements? (Select all that apply.)

When do you create a Journal Entry? (Select all that apply.)