Senior/Principal Account Clerk Civil Service Tests 93 Questions with Verified Answers
Interim statements (interim financial statements) - CORRECT
... [Show More] ANSWER Financial statements covering periods of less than one year; usually based on one-, three-, or six-month periods.
Income Statement - CORRECT ANSWER A financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time.
What are the two main parts of the body of an income statement? - CORRECT ANSWER Revenue and Expenses
Net Income - CORRECT ANSWER the difference between total revenue and total expenses when total revenue is greater
Balance Sheet - CORRECT ANSWER A financial statement that reports assets, liabilities, and owner's equity on a specific date.
Three sections of a balance sheet - CORRECT ANSWER Assets, Liabilities, Capital (owner's equity)
Which journal should this transaction be recorded in?
Mona paid the month's rent $600; check no. 356
General, Purchases, Cash Disbursements, Sales - CORRECT ANSWER Cash disbursements
Which journal should this transaction be recorded in?
The salon purchased $300 worth of styling products on account from Pomme de Terre Company
Cash Disbursements, General, Sales, Purchases - CORRECT ANSWER Purchases
Which journal should this transaction be recorded in?
Sold $100 worth of hair products on account
Sales, Purchases, General, Cash Disbursements - CORRECT ANSWER Sales
Which journal should this transaction be recorded in?
The owner withdrew $80 of styling products for personal use
Sales, General, Cash receipts, Cash disbursements - CORRECT ANSWER General (NOT sales because personal use)
Which journal should this transaction be recorded in?
Paid Pomme de Terre Company $300 on account, check 357
Purchases, Cash disbursements, Cash receipts, General - CORRECT ANSWER Cash disbursements (because paid via check)
Which journal should this transaction be recorded in?
Cash sales to date were $4607
Cash disbursements, Sales, Purchases, General - CORRECT ANSWER Sales
Which journal should this transaction be recorded in?
Issued credit slip to Angela for $25 for merchandise returned
Cash disbursements, Cash receipts, Sales, General - CORRECT ANSWER General
Which journal should this transaction be recorded in?
Paid electric bill for $250 on check # 358
Cash disbursements, General, Purchases, Cash receipts? - CORRECT ANSWER Cash disbursements
Which journal should this transaction be recorded in?
Received $75 from Angela for balance due on account
Sales, Cash receipts, Cash disbursements, Purchases? - CORRECT ANSWER Cash receipts
T-Account Ledger - CORRECT ANSWER Debit is on the left side
Credit is on right side
Ending balance is calculated by taking total debits less total credits
Cash-Asset, Liability, or Owner's Equity - CORRECT ANSWER asset
Accounts Receivable-Asset Liability or Owner's Equity - CORRECT ANSWER Asset
Delivery Equipment- Asset Liability or Owner's Equity - CORRECT ANSWER Asset
Supplies-Asset, Liability, or Owner's Equity - CORRECT ANSWER asset
Capital Account- Asset Liability or Owner's Equity - CORRECT ANSWER Owner's equity
Accounts Payable- Asset Liability or Owner's Equity - CORRECT ANSWER Liability
drawing account - CORRECT ANSWER A special type of owner's equity account set up to record the owner's withdrawal of cash from the business.
Drawing Account- Asset Liability or Owner's Equity - CORRECT ANSWER a drawing account is a contra account under owner's equity because it records owner's withdrawal of cash from the business, therefore lowering the owner's equity in the company
Advertising Expense- Asset Liability or Owner's Equity - CORRECT ANSWER Liability
Delivery Income- Asset Liability or Owners Equity - CORRECT ANSWER income, or any form or capital is owner's equity
Currency- Deposit slip - CORRECT ANSWER includes any paper money in deposit
interest rate on a promissory note - CORRECT ANSWER interest rate is for 12 month period. check due dates (90 days would be 3/12 of interest rate)
Interest rate is 12 %
Promissory note is due in 90 days
Face value is $900
How much interest is collected - CORRECT ANSWER 90 days is 3 months, 3/12ths of 12% is 3%
3% of $900 is $27 in interest
endorsement in blank - CORRECT ANSWER An endorsement that does not specify a particular holder, so that the bearer whoever has possession of the instrument is entitled to payment.
Just signing your name on the back of a check
Endorsement in full - CORRECT ANSWER an endorsement found on the back of a check indicating the new owner of a check; also known as a special endorsement
used to transfer a check to another person
endorsement which uses the phrase "pay to the order of"
restrictive endorsement - CORRECT ANSWER An endorsement found on the back of a check restricting further transfer of a check's ownership
"For deposit only; acc #; name"
limits the further purpose or use of the endorsed check
without recourse endorsement - CORRECT ANSWER A signed check that is endorsed with the words "without recourse" releases the endorser from any liability should the check bounce due to insufficient funds.
Cost of Goods Sold (COGS) - CORRECT ANSWER beginning inventory + purchases - ending inventory
cost of goods available for sale - CORRECT ANSWER total current inventory + cost of producing inventory
include any purchase freight and subtract returns from cost of purchasing inventory
discount period for notes - CORRECT ANSWER period that the note will be discounted for, not the period it will take until the note gets discouned
ie- terms are 30 days, issued 10/1 discount date is 10/10, the discount period is the remaining 20 days
Balance Sheet - CORRECT ANSWER A financial statement that reports assets, liabilities, and owner's equity on a specific date. Date represents the moment in time when the statement was perepared
statement of capital - CORRECT ANSWER A financial statement that shows the change in the value of the ownership in a business over a period of time. The change in capital is due to income or loss and withdrawals by the owner over a period of time.
how does the date on the balance sheet differ from the date on the statement of capital or income statement - CORRECT ANSWER the date on a balance sheet represents the moment in time when the statement was prepared, whereas the other financial statements represent the period during which any changed indicated on the statement took place
how can you determine when a balance sheet was prepared - CORRECT ANSWER look at the date up top. balance sheets are always dated with the day that they were prepared and represent the balances as of that moment in time
Indicate which journal the transaction would be recorded in:
Sale of goods on account
Cash receipts, cash payments, general or sales? - CORRECT ANSWER sales
Indicate which journal the transaction would be recorded in:
cash payment of a promissory note
cash payments, sales, cash receipts or general? - CORRECT ANSWER cash payments
Indicate which journal the transaction would be recorded in:
received a credit memo from a creditor
purchases, sales, general, cash payments? - CORRECT ANSWER general
Indicate which journal the transaction would be recorded in:
sale of merchandise for cash
purchases, cash receipts, general, cash payments? - CORRECT ANSWER cash receipts
Indicate which journal the transaction would be recorded in:
received a check from a customer in partial payment of an oral agreement
purchases, general, sales, cash receipts? - CORRECT ANSWER cash receipts
Indicate which journal the transaction would be recorded in:
issued a credit memo to a customer
purchases, cash payments, general, sales? - CORRECT ANSWER general
Indicate which journal the transaction would be recorded in:
received a promissory note in place of an oral agreement from a customer
general, cash payments, cash receipts, sales - CORRECT ANSWER general
Indicate which journal the transaction would be recorded in:
paid monthly rent
general, cash payments, purchases, cash receipts - CORRECT ANSWER cash payments
Indicate which journal the transaction would be recorded in:
sale of a service on credit
cash receipts, general, purchases, sales - CORRECT ANSWER sales
Indicate which journal the transaction would be recorded in:
purchase of office furniture on credit
general, cash payments, purchases, cash receipts - CORRECT ANSWER purchases
Indicate which journal the transaction would be recorded in:
purchased merchandise for cash
cash payments, sales, cash receipts, general - CORRECT ANSWER cash payments
Indicate which journal the transaction would be recorded in:
cash refund to a customer
cash receipts, sales, general, cash payments - CORRECT ANSWER cash payments
Indicate which journal the transaction would be recorded in:
purchases made on credit
purchases, cash receipts, sales, general - CORRECT ANSWER purchases
the interest on a promissory note is recorded when? - CORRECT ANSWER when the note is paid
the interest on a promissory note begins accruing when? - CORRECT ANSWER when the debt is incurred
think student loans, interest starts once you take on the debt
the maturity value of an interest bearing note is the - CORRECT ANSWER principal of the note plus interest
a cash receipts journal is used to record the - CORRECT ANSWER collection of cash made by the business
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in equipment? debit or credit? - CORRECT ANSWER debit assets (left side)
to increase assets you debit it
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in the proprietorship? debit or credit? - CORRECT ANSWER credit proprietorship (right side)
to increase proprietership you credit it
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in office salaries? debit or credit? - CORRECT ANSWER debit expenses (left side)
to increase expenses you debit the account because you're most likely crediting cash on the other side to decrease it, or increasing salaries payable which is a liability by crediting it
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an decrease in A/P? debit or credit? - CORRECT ANSWER debit liabilities (left side)
to decrease liabilities you debit, because you're crediting cash on the right side
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in merchandise inventory? debit or credit? - CORRECT ANSWER debit assets (left side)
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an decrease in office equipment? debit or credit? - CORRECT ANSWER credit assets (right side)
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an decrease in office supplies? debit or credit? - CORRECT ANSWER credit assets (right side)
while you're decreasing assets by crediting, the offset might be debiting supply expense which would increase it
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in proprietor's drawing account? debit or credit? - CORRECT ANSWER an increase to a proprietor's drawing account would be decreasing proprietorship which would mean you have to debit it
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put a withdrawal of capital by the proprietor? debit or credit? - CORRECT ANSWER you would debit proprietorship
most likely crediting a cash account on the other side
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in sales? debit or credit? - CORRECT ANSWER you would credit income (right side)
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in salaries payable? debit or credit? - CORRECT ANSWER this is increasing a liability which would be a credit (right side)
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in the net profit for the period? debit or credit? - CORRECT ANSWER you would credit proprietorship (right side) therefore increasing proprietorship
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in sales returns and allowances? debit or credit? - CORRECT ANSWER you would debit income (left side) because returns are a hit to your income therefore decreasing it
think about it as if your cash is going down because you have to pay out a return, so you credit cash and debit income
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put a decrease in purchases? debit or credit? - CORRECT ANSWER you would credit expenses (right side) because expenses are decreasing
think of it as you're debiting accounts payable since thats decreasing because you're buying less, and you're crediting expenses
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an decrease in accounts receivable? debit or credit? - CORRECT ANSWER you would credit assets (right side)
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in mortgage payable? debit or credit? - CORRECT ANSWER you would credit liabilities because theyre increasing
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in delivery expense? debit or credit? - CORRECT ANSWER you would debit expenses (left)
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in notes payable? debit or credit? - CORRECT ANSWER you would credit liabilities (right)
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put an increase in purchase returns and allowances? debit or credit? - CORRECT ANSWER you would credit expenses (right)
if you're getting refunds from purchases you made, your cash is increasing (debiting asset acc) and your expenses is decreasing (crediting expense acc)
T-account: Assets, liabilities, proprietorship, income, expenses
where would you put a decrease in delivery equipment? debit or credit? - CORRECT ANSWER you would credit assets (right)
when sales are made for cash the sales account is (debited or credited) - CORRECT ANSWER sales account is credited, cash account would be debited
when sales are made on account, the customer's account is (debited or credited) - CORRECT ANSWER customer's account is debited, revenue or income account would be credited to increase it
when merchandise is purchased for cash, the purchases account is (debited or credited) - CORRECT ANSWER merchandise account is debited, cash would be credited
the creditors account is (debited or credited) when payment is made on account - CORRECT ANSWER the creditors account is debited
this is tricky, but think of it as the company owed the money to a creditor, so when payment is made to the creditor cash would be credited, and their acc would be debited
the sales account is (debited or credited) for the total of the amount column in the sales journal - CORRECT ANSWER credited because its an increase to revenue
the cash account is (debited or credited) for the total o the cash column in the cash receipts jounral - CORRECT ANSWER cash account is debited because it is increasing
the cash receipts journal records all money taken in by the company for services or goods, so this would be money put towards increasing the cash acc
the purchases account is (debited or credited) for the total amount of the purchases column in the purchases journal - CORRECT ANSWER debited, purchases are an expense and to increase an expense you would debit it
for every purchases, you're crediting cash or accounts payable. so either youre decreasing cash and increasing expenses, or increasing accounts payable by crediting it and increasing the expense by debiting it
the A/R account is (debited or credited) for the total amount of the sales journal - CORRECT ANSWER debited, because you're increasing an asset while crediting income account to increase income
each account in the sales journal is posted to the (debit or credit) of the customer's account - CORRECT ANSWER debit, because you're crediting revenue
the total of the accounts payable column in the cash payments journal is posted to the (debit or credit) of the accounts payable account - CORRECT ANSWER debit, because the cash payments journal is a record of all payments made, so therefore we're crediting cash to pay down our liabilities, which would decrease our liabilities therefore debiting them
the total of the cash column in the Cash Payments Journal is posted to the (debit or credit) of the cash account - CORRECT ANSWER credit, this journal is a record of all cash payments therefore your cash amount is decreasing
the opposite of this would be the cash receipts journal, where the total of the cash column would be debited to the cash account because its a record of monies being taken in
each account with an amount entered in the General column of the Cash Receipts Journal is (debited or credited) - CORRECT ANSWER credited, because the other side of the transaction is a debit to cash
when the proprietor invests additional cash in the business, the capital account is - CORRECT ANSWER credited, cash is debited
when merchandise is purchased on account, the purchases account is - CORRECT ANSWER debited, accounts payable is credited to increase it
when sales salaries are unpaid at the close of the fiscal period, the salaries payable account is - CORRECT ANSWER credited to increase it
when equipment is purchased on account, the creditor's account is - CORRECT ANSWER credited, because equipment is debited as an asset and accounts payable would be credited to increase it [Show Less]