Business Accounting Final

Jack's Online Service on April 30 has the following transactions: Merchandise Inventory purchased$32,000 Merchandise Inventory returned 3,000 If Jack's pays the invoice in time to receive a 1% discount, what is the amount Jack owes?

$28,710

A receiving report includes:

All of the above are correct.

Closing entries are prepared:

All of the above are correct.

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

Form W-2

Which report would an employer review if they wanted to check how much an employee has earned to date?

Individual employee earnings record and Payroll register.

What type of an account is Wages and Salaries Payable?

Liability

The financial statement that shows business results in terms of Revenue and Expenses is:

None of the above.

There are two parts to FICA:

OASDI and Medicare.

Mid-West Tutoring had the following payroll information on January 31: EmployeeGross PayCumulative EarningsPrior to this PayrollR. Tanner$4,300$4,600 Assume:FICA tax rates are: OASDI 6.2% on a limit of $128,400 and Medicare 1.45%.State Unemployment tax rate is 2% on the first $7,000.Federal Unemployment tax rate is 0.8% on the first $7,000.Federal Income Tax Withheld $900; State Income Tax Withheld $300.Using the information above, the journal entry to record the employee's payroll expense would include:

a debit to Wages and Salaries Expense in the amount of $4,300.

An accounting tool used to record increases and decreases in individual Assets, Liabilities, Capital, Revenue, Expenses, and Owner's Drawing is a(n):

account.

The time period for which a statement of owner's equity is prepared is a(n):

accounting period.

Cash - Payroll Checking is a(n):

asset.

The length of time the customer is allowed to repay the bill is the:

credit period.

A deposit received by the bank will:

debit the cash account on the company's books.

A payment for $51 is incorrectly recorded on the checkbook stub as $15. The $36 error should be shown on the bank reconciliation as:

deducted from the balance per books.

The time frame when customers are allowed to pay their bills and still be eligible for a discount is the:

discount period.

Wages and Salaries Expense is:

equal to gross pay.

NOT recording the Prepaid Rent Expense used causes:

expenses to be too low.

The term F.O.B. means:

free on board.

A form used in business to place an order for the buying of goods from a seller is:

purchase order.

Accounts in which the balances are carried over from one accounting period to the next are called:

real accounts.

Revenue is traditionally recognized in the accounting records when:

services are rendered.

An adjustment for Prepaid Rent Expense would indicate:

the amount expired.

Merchandise sold on credit was returned for credit and recorded with a debit to Sales Returns and Allowances and a credit to Accounts Payable. This error will cause:

the assets to be overstated.

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.

An example of an internal control is NOT:

the use of unnumbered checks.

To compute federal income tax to be withheld:

use gross earnings, number of allowances, and marital status.

When the term F.O.B. shipping point is used, title passes:

when goods are shipped.