NOCTI Review 2
The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the
Income statement
A purchase of merchandise on
Increases a liability
If an employee is being paid bi-weekly how many times do they get paid a month
2
You cannot be paid for overtime until you have worked __ hours
40
What is an outstanding check?
A check that has been written by a company but has not yet cleared the bank account on which it is drawn
Which type of journal entries are made at the end of each accounting period so that the financial statements better reflect the accrual method of accounting?
Adjusting
Adjusting entries are for what accounts
Asset accounts
What is the accounting equation?
Assets = liabilities + owner's equity
Buying something and saying you will pay for it at a later date is
Buying on account
What will usually cause an asset account to increase
Debit
When an expense is involved in a transaction, an expense will be
Debit
When cash is received, the account Cash will be
Debited
Which accounts normally have a debit balance
Expense, assets, drawing
When an employee tells someone something that is very important and confidential to a business what kind of conflict is that
External
The inventory cost assumption where the first inventory Is the first to go is
FIFO
What is FICA
Federal insurance contributions act
When posting in the ledgers from the general h=journal the correct way to write it is
GJ8 or J8
A company disposes of equipment that it no longer uses in its business. The amount received by the company is more than the amount the asset is carried at in the accounting records. The company will report a(n)
Gain
Which is greater, net or gross pay?
Gross
What is physical inventory?
Inventory you can physically go count
What taxes do the employer also pay?
Medicare and social security
What is NSF
Non-sufficient funds
Mark wrote $123 but he was supposed to write $132. What kind of error is this?
Transposition
What is a w-2 form
Used to report wages paid to employees and the taxes withheld from them
Is depreciation an expense to a company?
Yes
Crediting the estimated value of uncollectible accounts to a contra account is the
book value of Accounts Receivable
The total of the Purchases journal is posted as a credit to the _____ account.
purchases
Employee regular earnings are calculated as
regular hours times regular rate
The best way to manage multiple bank accounts would be to
set up the accounts online