Midterm Review Dan Dieringer & Caroline Halt

1. Midterm Review Dan Dieringer & Caroline Halt

2. Accounting Cycle Ethics Transactions Source Documents Financial Statements 100 100 100 100 100 200 200 200 200 200 300 300 300 300 300 400 400 400 400 400 500 500 500 500 500

3. Accounting Cycle– 100 Points • QUESTION: • What’s the second step of the accounting cycle? • ANSWER: • To Analyze the Transaction

4. Accounting Cycle – 200 Points • QUESTION: • When you are analyzing a transaction, at least how many accounts are affected? • ANSWER: • Two

5. Accounting Cycle– 300 Points • QUESTION: • When posting an entry to which are you posting, the general journal or the general ledger? • ANSWER: • General Ledger

6. Accounting Cycle – 400 Points • QUESTION: • Where does the information from adjusting accounts come from? • ANSWER: • The Worksheet

7. Accounting Cycle – 500 Points • QUESTION: • Which steps of the accounting cycle are done throughout the month? Which are done to close a month? • ANSWER: • During the month: Steps 1-4 • To Close: Steps: 5-10

8. Ethics– 100 Points • QUESTION: • What is the study of right and wrong, and how people choose to do what is right or wrong? • ANSWER: • Ethics

9. Ethics – 200 Points • QUESTION: • What ethic are you using when you create trueand correct financial statements? • ANSWER: • Integrity

10. Ethics – 300 Points • QUESTION: • What principle of ethics are you using when you don’t allow your personal interests to influence your choices and work? • ANSWER: • Objectivity

11. Ethics – 400 Points • QUESTION: • What does ethics mean in terms of a business as a whole? • ANSWER: • It is a code of conduct that the business encourages all its employees to follow.

12. Ethics – 500 Points • QUESTION: • List the five different principles of ethics. • ANSWER: • Integrity, Objectivity, Independence, Competence, Confidentiality

13. Transactions – 100 Points • QUESTION: • Received cash from sales $500.00 • ANSWER: • Debit Cash $500 and credit Sales $500

14. Transactions – 200 Points • QUESTION: • Paid cash to owner for personal use $2800.00 • ANSWER: • Debit Drawing $2800 and Credit Cash $2800

15. Transactions – 300 Points • QUESTION: • Received cash on account from Covey Company $200.00 • ANSWER: • Debit Cash $200 and Credit Accounts Receivable- Covey Company $200

16. Transactions – 400 Points • QUESTION: • Sold services on account to Tony’s Limos $582.00 • ANSWER: • Debit Accounts Receivable- Tony’s Limos $582 and Credit Sales $582

17. Transactions – 500 Points • QUESTION: • Paid cash for telephone bill $70.00 • ANSWER: • Debit Utilities Expense $70 and Credit Cash $70

18. Source Documents – 100 Points • QUESTION: • What source document is used for all sales on account? • ANSWER: • Sales Invoice

19. Source Documents – 200 Points • QUESTION: • What source document is used when you order a bank to pay cash from a bank account? • ANSWER: • Check

20. Source Documents– 300 Points • QUESTION: • What source document is used to calculate the total cash sales at the end of a day? • ANSWER: • Calculator Taper

21. Source Documents– 400 Points • QUESTION: • When are memorandums used? • ANSWER: • When there is no other type of source document.

22. Source Documents– 500 Points • QUESTION: • Why are source documents essential to analyzing transactions? • ANSWER: • The source document proves that the transaction occurred.

23. Financial Statements– 100 Points • QUESTION: • What are the sections of the balance sheet? • ANSWER: • Header, assets, liabilities, owner’s equity.

24. Financial Statements– 200 Points • QUESTION: • What are the sections of the income statement? • ANSWER: • Header, revenue, expenses, net income/loss, component percentages.

25. Financial Statements– 300 Points • QUESTION: • What is on the top of all financial statements, and what are the three parts of it? • ANSWER: • Header; it’s made up of the company name, the name of the report, and the date.

26. Financial Statements– 400 Points • QUESTION: • What are the steps when recording a journal entry in the general journal? • ANSWER: • 1. Write the date. • 2. Write the name of the account debited. • 3. Record the amount debited. • 4. Write the name of the account credited. • 5. Record the amount credited. • 6. Record the source document in the Document Number column.

27. Financial Statements– 500 Points • QUESTION: • What are the steps when posting to the general ledger? • ANSWER: • 1. Write the date. • 2. Write the journal page number in the post reference column. • 3. Write the amount debited or credited. • 4. Write the new account balance in the appropriate column. • 5. Return to the journal and record the account number in the post reference column.

28. Final Jeopardy Question List all 10 steps of the accounting cycle.

29. Final Jeopardy Answer • Collect and verify source documents. • Analyze transaction. • Journalize in the general journal. • Post to the general ledger. • Prepare trial balance. • Prepare worksheet. • Prepare financial statement. • Journalize and post adjustment entries. • Journalize and post closing entries. • Prepare a post closing trial balance.