(DAO) 2.3 Lesson 2: Accounts Payable Quiz

When Susan Boyer, a new dental assistant in your practice, received her first paycheck, she was surprised to see it was much less than she anticipated from her hourly pay. Which of the following statements concerning this situation is correct?

Deductions to the paycheck for federal and state taxes and FICA are largely responsible for the decreased pay. This tends to be an eye opener for folks just entering the workforce. The federal and many state governments mandate that the dentist withhold and pay the employee's taxes periodically as well as pay and match contributions to the Social Security fund. Depending on the employee's income, this can result in a significant reduction from what is expected based on hours worked and compensation per hour!

What is the name given to payments made on practice expenses?

Disbursements Disbursements are payments made by the practice to satisfy expenses incurred by the practice.

________, or social security is deducted from the pay and the dentist is required to match the amount.

FICA FICA, the Federal Insurance Contributions Act represents social security.

Which of the following is not a type of fixed overhead?

Laboratory fees Laboratory fees depend on how many procedures are performed that require laboratory work, which varies from week to week.

A listing of what supplies have been sent is called a:

Packing slip The invoice tells what was sent and what was ordered. The statement is a listing of invoices in a given period, and the packing slip indicates what's in the package it accompanies.

The Social Security funds and worker compensation funds are deposited by the employer

Quarterly The government requires these deposits to be made on a quarterly basis.

Which of the following does not represents a fixed overhead?

Supply costs Mortgage, full-time employee salaries, and liability insurance represent fixed overhead because they stay relatively stable from month to month. The cost for supplies varies monthly and is considered variable overhead.

The document provided to every employee by the end of January stating the amount of taxes withheld is the:

W-2 A W-2 is the document, showing the past year's compensation, that the employee uses to prepare a federal tax return.

Janet is a new employee and needs to complete the document which states the number of exemptions she will claim. She requests a

W-4 A W-2 is a statement of federal and or state taxes withheld. FICA represents Social Security deduction. The deposit slip accompanies dental office funds to be deposited.