Accounting Homework 8-10

B

A petty cash fund is set up A. to pay for large expenses. B. to pay for small expenses. C. for the owner to withdraw money for personal use conveniently. D. None of these answers are correct.

B

All provinces use the same rates for Income Taxes. A. True B. False

C

Cash Short and Over is A. a Misc. Expense account. B. neither a Misc. Expense nor Misc. Revenue. C. a Misc. Expense or Misc. Revenue account depending on the balance in the account. D. a Misc. Revenue account.

B

Like​ CPP, Federal Income Tax has a cut-off point where there is no longer Income Tax withheld. A. True B. False

C

The debit recorded in the journal to establish the petty cash fund is to A. Accounts Payable. B. Cash. C. Petty Cash. D. Accounts Receivable.

B

The form used to determine an​ employee's net claim code is called a A. Record of Employment. B. TD1. C. Employee Earnings Record D. T4.

C

When remitting​ EI, the entry would be A. debit​ Cash, credit EI Expense. B. debit​ Cash, credit EI Payable. C. debit EI​ Payable, credit Cash. D. debit EI​ Expense, credit Cash.

D

Workers' compensation A. insures employees against losses they may incur due to injury or death while on the job. B. is paid for by the employer. C. is based on the total estimated payroll. D. All of the above are correct.

D

Advantages of online banking include A. convenience. B. transaction speed. C. effectiveness. D. All of the above are correct.

A

Companies have a business number given by the federal government that uniquely identifies them. A. True B. False

A

If Wages and Salaries Payable is​ debited, what account would most likely be​ credited? A. Cash B. CPP Payable C. Wages and Salaries Expense D. Payroll Expense

A

S.W.I.F.T. codes in modern banking make moving funds internationally a quick and accurate process. A. True B. False

D

The bank statement shows A. any other charges or additions to the bank balance. B. the cheques the bank has paid and any deposits received. C. the beginning bank balance of the cash at the start of the month. D. All of these answers are correct.

B

The journal entry to reverse the entry of a​ customer's nonsufficient funds cheque would include a A. debit to Accounts Payable. B. credit to Cash. C. debit to Cash. D. credit to Accounts Receivable.

A

What type of account is EI​ Payable? A. Asset B. Revenue C. Expense D. Liability

A

Income Taxes have no maximum amount. A. True B. False

A

Petty Cash is an asset shown on the balance sheet. A. True B. False

D

The change fund is what type of​ account? A. Expense B. Liability C. Revenue D. Asset

B

A company would use a change fund if A. the owner wants to make personal withdrawals easily. B. there are cash transactions daily. C. they want to pay the postage expense without writing a cheque. D. None of these are correct.

C

A payment for​ $49 is incorrectly recorded in the accounting records as​ $94. The​ $45 error should be shown on the bank reconciliation as A. added to the balance per bank statement. B. deducted from the balance per bank statement. C. added to the balance per books. D. deducted from the balance per books.

B

All of the following are statutory payroll deductions EXCEPT A. Income Tax. B. Canada Savings Bond Payments. C. Canada Pension Plan. D. Employment Insurance.

A

All payroll registers include sections for recording A. gross​ pay, deductions and net pay. B. trade accounts receivable and short-term notes receivable. C. accrued​ expenses, unearned revenue and net pay. D. assets, liabilities,​ equity, revenue and expenses.

B

As the Prepaid Workers Compensation is​ recognized, the amount will transfer to A. Payroll Tax Expense. B. Workers Compensation Insurance Expense. C. Workers Compensation Insurance Payable. D. Cash.

C

Bank interest earned on a chequing account would be shown on a bank reconciliation as A. added to the balance per bank statement. B. deducted from the balance per bank statement. C. added to the balance per books. D. deducted from the balance per books.

B

CRA stands for A. Canadian Revenue and Affiliates. B. Canada Revenue Agency. C. Canadian Revenue Association. D. Civil Revenue Agency.

A

Company policy for internal control should include all of the following EXCEPT A. one employee should have the total responsibility for approving​ purchases, authorizing​ payments, and signing cheques. B. all cheques are signed by the owner​ (or responsible​ employee) after receiving authorization to pay from the departments concerned. C. at time of​ payment, all supporting invoices or documents will be stamped​ "paid." D. employees will be rotated through a variety of assignments.

D

Determine the adjusted cash balance per bank for Egg Packaging on April​ 30, from the following​ information: Cash balance on the bank statement​ $2,500 ​Customer's cheque returned - NSF 500 ​Customer's note collected by the bank 600 Deposits in​ transit, April 30​ 1,400 Outstanding​ cheques, April 30​ 2,650 A. $1,550 B. $1,100 C. $1,350 D. $1,250

A

Employers should use a PD7A form to remit monthly employee deductions to the Canada Revenue Agency. A. True B. False

A

Employment Insurance premiums are paid by A. both the employer and employee. B. the employer. C. the employee. D. the Provincial Government.

B

Employment Insurance premiums are paid by A. the employer. B. both the employer and employee. C. the Provincial Government. D. the employee.

A

Every business with employees must have a unique identification number issued by the Canada Revenue Agency. A. True B. False

B

Haliburton​ Hotel's $200 Petty Cash fund has a shortage of​ $8. The facts are​ $160 in valid receipts for​ expenses; $32 in coins and currency. The journal entry to replenish the petty cash fund would include a A. credit to Cash for​ $160. B. debit to Cash Short and Over for​ $8. C. credit to Petty Cash for​ $168. D. credit to Cash Short and Over for​ $8.

A

Income tax deduction amounts for employees in all provinces and territories in Canada​ (except Quebec) must be calculated based on A. both Federal and​ Provincial/Territorial Tax rates. B. Federal Tax rates only. C. the TONI Tax tables. D. Provincial/Territorial Tax rates only.

B

Information to calculate the adjusted cash balance for Everest Climbing Gear is as​ follows: Cash balance per general ledger​ $4,000 ​Customer's cheque returned - - NSF 150 Bank service charges 80 Deposits in transit​ 1,000 Outstanding cheques​ 1,400 ​Customer's note collected by bank​ 1,290 A. $4,860 B. $5,060 C. $4,660 D. $5,260

D

Internal control over a​ company's assets should include the following​ policy: A. Responsibilities and duties of employees will be divided. B. All cash payments will be made by cheque​ (except petty​ cash). C. All cash receipts will be deposited into the bank the same day they arrive. D. All of these answers are correct.

B

NSF is an abbreviation for Not Satisfactory Funding. A. True B. False

C

Net pay equals A. regular earnings. B. regular earnings​ + overtime earnings. C. gross pay less all deductions. D. net earnings​ + overtime earnings greater than the amount withheld from the employee.

B

One benefit of using computer software to complete a payroll is​ NOT: A. It creates fewer calculation errors. B. It is preferred by Revenue Canada. C. It speeds up the payroll process. D. It makes year-end reporting much easier.

B

Personal Income Tax rates A. vary according to the​ employee's cash on hand. B. vary from province to province. C. are the same in every province. D. are set by the Municipal Government annually.

B

Prepaid​ Worker's Compensation Insurance is what type of​ account? A. Liability B. Asset C. Revenue D. Expense

A

Technological controls can include all of the following EXCEPT A. restricting social media access at work. B. using personal identification scanners. C. using digital keycards for access. D. requiring passwords on all systems.

B

The Office Salaries Expense account would be used to record A. a debit for the amount of net pay owed to the office workers. B. gross earnings for the office workers. C. net earnings for the office workers. D. a credit for the amount owed to the office workers.

C

The amount of Gross​ Earnings, Income​ Tax, CPP and EI deducted is reported to the employee at the end of the year on​ a(n) A. Record of Employment. B. Payroll Summary. C. T4. D. Employee Earnings Record.

A

The credit recorded in the journal to replenish the petty cash fund is to A. Cash. B. Petty Cash. C. Accounts Payable. D. Accounts Receivable.

A

The debit amount to Payroll Tax Expense represents A. the​ employer's portion of the payroll taxes. B. the​ employees' portion of the payroll taxes. C. the​ employer's and​ employees' portion of the payroll taxes. D. None of the above are correct.

D

The employer pays CPP premiums in what ratio to employee CPP​ deductions? A. Matching employee CPP deductions B. 1/2 employee CPP deductions C. 1/4 of employee CPP deductions D. 1.4 times employee CPP deductions

B

The employer pays EI premiums in what ratio to employee EI​ deductions? A. 2 times employee EI deductions B. 1.4 times employee EI deductions C. 4 times employee EI deductions D. Does not contribute

B

The employer records deductions from the​ employee's paycheque A. as credits to capital accounts. B. as credits to liability accounts until paid. C. as debits to asset accounts until paid. D. as debits to expense accounts.

A

The entry to replenish a​ $100 petty cash fund which has cash of​ $20 and valid receipts for​ $76 would include A. a credit to Cash for​ $80. B. a credit to Petty Cash for​ $80. C. a debit to Cash for​ $76. D. a credit to Cash for​ $76.

B

The forms T4 and T4-T4A Summary must be submitted to the employees and Federal Government respectively by A. April 30 of the year following. B. February 28 of the year following. C. the 15th of the month following. D. when an employee leaves a job.

C

The information needed to make the journal entries to record the wages and salaries expense comes from A. the look-back period. B. form PD7A. C. the payroll register. D. form TD1-A.

A

The objectives of internal control are to ensure efficient operations and provide reasonable assurance of all of the following EXCEPT A. profits are maximized while minimizing spending. B. business information is accurate. C. employees and managers comply with laws and regulations. D. assets are safeguarded and used for business purposes.

D

Wages and Salaries Expense is A. equal to gross pay. B. equal to the​ employer's taxes. C. equal to net pay. D. None of the above are correct.

C

When a company transfers funds among parties​ electronically, without the use of paper cheques it is called A. automated reconciliation. B. cheque truncation. C. electronic funds transfer. D. e-commerce.

B

Which of the following accounts would most likely be debited in the replenishment of petty​ cash? A. Cash B. Postage Expense C. Petty Cash D. Withdrawals

A

Which of the following bank reconciliation items would NOT be reflected in a journal​ entry? A. Outstanding cheques B. Collection of a note by the bank C. NSF customer cheque D. Bank service charges

D

Which of the following would NOT be shown on the bank​ statement? A. Cancelled cheques B. Bank service charge C. NSF cheque D. Deposit in transit

C

​Phil's Training​ Service's $100 petty cash fund has a shortage of​ $4. The facts​ are: $80 in valid receipts for​ expenses; $16 in coins and currency. The journal entry to replenish the petty cash fund would include a A. credit to Cash​ Short/Over for​ $4. B. credit to Cash for​ $80. C. debit to Cash​ Short/Over for​ $4. D. credit to Petty Cash for​ $84.