....

A shareholder owns 50,000 shares of stock of a company. The Board of Directors declares a dividend of $.10 per share. If the tax rate on dividend distributions is 20%, how much tax did this shareholder pay?

$1,000

An employee travels for work in the company car. He uses the company credit card to fill the gas tank. If he travels 1,100 miles in a week, and the car gets 30 miles per gallon, and gas prices average $3.00 per gallon, how much money did he spend on gas during the week (round to nearest dollar)?

$110

You have a driveway sealing business. A commercial property has asked you to seal their parking lot. The parking lot is 100ft x 75ft. You charge $5/sq. ft. Sealant costs $1/sq. ft. and workers on the job cost $1.5/sq. ft. How much money in profit does this business expect to make on this job?

$18,750

You make entries to the mileage expense account. A saleswoman drives to a town 30 miles south and 40 miles west. She goes there and back via a straight highway that leads directly there. You reimburse mileage at $0.50 per mile. How much should you reimburse her?

$50

An account with a normal debit balance has successive entries of $550, $240, and $110. After these entries, the balance has increased by $680. Which entries are debits?

$550 and $240

How many trial balances are there in the Accounting Cycle?

3

You plan to number each account in your Chart of Accounts. You want to have major categories and 2 levels of sub-categories. Each level of category will be represented by a digit. You want to have room in your numbering for at least ten accounts within the lowest level of sub-categories. How many digits do you need in your account numbers?

4

You prepay annual insurance at the start of the year. The premium is $1,200. What should be the balance of the Prepaid Insurance asset account at the end of April, but before adjustments?

900

A long running asset account has a balance that has doubled each year over the last 10 years. The year end balances form:

A geometric sequence

The last trial balance in the accounting cycle is the:

After-closing trial balance

What is the outcome if a general journal entry is NOT posted?

All of the above.

What additional column category exists in a general ledger account versus the general journal?

Balance

You are reviewing a company's general ledger. It shows consecutive balances of $76,118 and $67,503 for the Cash account but the transaction column is unreadable. What was the transaction?

Credit $8,615

Where does the information to Post to the General Ledger come from?

General Journal

In your general ledger, you have an account called Maintenance Reserve with a balance of $4,000 that holds funds for maintenance. Your boss asks if you have enough to pave the parking lot. Paving costs $3 per square foot and the parking lot is round with a diameter of 40ft. Do you have enough in the account?

Yes

n advantage of forming a sole proprietorship is:

ability to keep all profits.

What is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger?

chart of accounts

True or false: A general ledger is used only by small businesses.

false

Double taxation is a disadvantage of what form of business?

orporation

What two forms of businesses have unlimited liability and can be sued personally?

sole proprietorship and partnership