hm 335 exam 2

which of the following is an example of a land improvement?

(all) fences, driveway, shrubbery

internal control over a companys assets should include the following policy:

(all) responsibilities and duties of employees will be divided, all cash payments will be made by check (except petty cash), all cash receipts will be deposited into the bank the same day they arrive

the employee earning record:

1) keeps track of an individual employees payroll history for a calendar year 2) is one of two primary records used to track payroll information

which taxes are considered 941 taxes:

FICA and FIT

Which of the following taxes has a maximum amount an employee must pay in a year?

FICA-OASDI tax

The employer's annual Federal Unemployment Tax Return is:

Form 940

Which form contains information about gross earning and is given to the employee by January 31

Form W-2

gross earnings

all earnings before any deductions

difference between an extraordinary repair and a betterment

an extraordinary repair may extend the life of the asset; a betterment does not

drawee:

bank that drawer has an account with

cash over short: shortage-

debit (miscellaneous expense)

when a business starts, what must it obtain that identifies itself to the government

employee identification number

the number of allowances claimed by an employee determines how much will be withheld from their paycheck for:

federal income tax

credit memorandum

increase in depositors balance

wages and salaries payable would be used to record:

net earnings of the employees not paid

Under the fair labor standards act, for any hours that an employee works over 40 during a work week:

the employee is paid time and a half

bank reconciliation:

the process of reconciling the checkbook balances with the bank balance given on the bank statement

A calendar quarter consists of:

13 weeks

The employers total FICA, SUTA, and FUTA tax is recorded as:

a debit to Payroll Tax Expense

payroll

a length of time used by an employer to calculate the amount of an employees earnings. pay periods can be daily, weekly, biweekly, semimonthly, monthly, quarterly, annually

an example of an intangible asset is:

a patent

Prepaid workers compensation insurance is what type of account?

asset

the change fund is what type of account?

asset

cash:

asset. dec-> credit

change fund:

asset. increase ->debit

cash over short: overage-

credit (miscellaneous income)

the entry to record the payment of taxes withheld from employees and FICA taxes would be to:

credit cash; debit FICA- social security payable, FICA- medicare payable, and federal income tax payable

debit memorandum

decrease in depositors balance

the depreciation method which charges more expense in earlier years than in later years is the:

double declining-balance method

Fair labor standards act (federal wage and hour law)

employers must follow rules stating the minimum hourly rate of pay and the maximum number of hours a worker will work before being paid time and a half for overtime hours worked

amortize

intangible

A restrictive endorsement on a check:

is the safest endorsement for businesses

FICA taxes provide funding to the government to pay:

medical benefits for persons over 65, monthly retirement benefits for persons over age 62, and benefits for person who have become disabled

the person or company to whom a check is payable is called the:

payee

to examine in detail the weekly payroll of all employees, one would look at the:

payroll register

revenue expenditures include:

periodic normal maintenance costs

drawer:

person who writes the check

depreciate

tangible

to compute federal income tax to be withheld:

use gross earnings, number of allowances, and marital status

Insurance paid in advance by employers to protect their employees against loss due to injury or death incurred during employment is:

worker's compensation insurance