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
