Mort 165 management Grande 7

The information from the payroll register is transferred to the:

employee's earnings record

SUTA taxes are generally paid by:

employers

Salaries are paid to managers and administrators and usually are a portion of an annual salary figure. Wages are usually considered

hourly earnings paid for hours worked. However, in actual practice, the terms are often interchangeable.

The SUTA tax (State Unemployment Tax Act) provides the resources to pay the:

state unemployment benefits.

The business or person upon whose account a check is drawn is called:

the drawer = person who signs the check bank = drawee

Generally employers are required to withhold federal taxes from the gross earnings of employees. The amount withheld may be determined by each of the following items except:

age of the employee.

If the Petty Cash fund is not replenished at the end of the accounting reporting period:

the income statement and the balance sheet will not be correct. Expenses will be understated (by amt. pd with petty cash) Income will be overstated (because expenses are understated) Cash will be overstated (because it wasn't credited to replenish the petty cash fund)

Gross earnings is:

the total earnings of an employee before any payroll deductions have been taken.

Net pay:

also called take-home-pay, is the total amount received after all deductions have been subtracted from gross earnings.

When a bank reduces the depositor's checking account for service charges or check printing charges, the bank...

debits the depositor's account.

The proper treatment of a deposit recorded by the business but not yet recorded by the bank is to report the deposit on the bank reconciliation as a(n):

deposit in transit, add it to the bank balance.

A check written for $43.00 was entered in the records with a credit to the Cash account for $34.00. On the bank reconciliation, the correction of the error will require:

$43 paid by bank: 43 - 34 = 9 added to book balance Journal Entry: Dr. Cash $9, Cr. A/P $9

An employee worked a total of 56 hours for a 7 day week, working 8 hours on Saturday at time-and-one-half, and 8 hours on Sunday at double time. If the employee is paid a regular wage of $8.00 per hour, the gross earnings for the period will total:

$544

In preparing the bank reconciliation, it is discovered that a check for the $87.00 telephone bill was written correctly for that amount but listed in error in the journal at $78.00. What will the correcting journal entry be?

$87 - 78 = $9 Dr. Telephone Expense Cr. Cash correcting check # 7879

When would you debit the Petty Cash account?

1. When it is established 2. when it is increased 3. otherwise, various expense accounts would be debited

For effective cash control, the petty cash cashier will use:

A Voucher System

An endorsement consisting only of a depositor's name stamp or signature

Blank endorsement

For effective cash control, deposits should be made:

Daily

The cash register cash count totals $5,102. The cash register sales tape reports sales for the day of $5,103. As a result of these totals, there is a:

Dr Cash $5102.00 Dr. Cash Short and Over $1.00 Cr. Sales $5103.00 To record daily sales and cash short $1 Cash short $1

The proper entry to establish a Petty Cash fund is to:

Dr Petty Cash Cr Cash Check #89890 to establish petty cash fund

The Petty Cash cashier reported the following Petty Cash receipts: office supplies $30.00 store supplies $19.00 cash left in the petty cash box, $.50. The Petty Cash account has a $50.00 balance. The entry to replenish the Petty Cash is:

Dr office supplies $30.00 Dr. Store supplies $19.00 Dr. Cash short and over $ .50 Cr. Cash $ 49.50 replenish petty cash

Replenishing the petty cash fund will require:

Dr--expenses/assets paid by petty cash Cr--cash petty cash account is Dr when it is created or the amount inc.

The bank on which the check is drawn is called the :

Drawee: bank on which check is drawn Drawer: person who signs the check Payee: person to whom check is payable

The FUTA tax (Federal Unemployment Tax Act) is a federal tax paid by the:

Employer

By law, federal taxes must be withheld from the gross earnings of employees. These taxes are:

FICA, Medicare, and Federal Income Tax.

The law that sets the minimum wage and the 40-hour work week is the:

Fair Labor Standards Act

Under the __________ all hours worked in excess of the normal 40-hour week are generally paid at time and one-half the regular hourly rate.

Fair Labor Standards Act (often called the Federal Wage Hour Law)

In many states, those employers who have very few layoffs and few claims for unemployment benefits receive a:

Merit rating

Self-employment income is the ____ income of a trade or business run by an individual.

NET INCOME

For good cash control, the custody of cash and the record-keeping of cash should be

Separated

The FICA tax is commonly referred to as the:

Social Security tax

Employee Roberta Smiles clocked 48 hours this week by working her regular five days (40 hours), and then returning for a full 8 hours on Sunday. Roberta's pay rate is $10.50 per hour, and Sunday is considered a double-time day by her employer. Her total gross earnings will be:

The total gross earnings will be $588.00.

The bookkeeper recorded a payment by check for the purchase of store supplies as: Dr. Store Supplies $1340.56 Cr. Cash 1340.56 The check was recorded by the bank at its correct amount of $3,140.56. Prior to the preparation of the bank reconciliation, the error would cause:

a possibility that the checking account might become overdrawn. debits = credits cash = overstated store supplies = understated

The proper treatment on a bank reconciliation of a note receivable collected for the firm by the bank is to show the note as a(an):

addition to the book balance per checkbook.

Both cash overages and shortages are cause for:

attention by management.

The total earnings-to-date information for each employee will be found in:

both the employee's earnings record and the payroll register.

FICA taxes on employee earnings are paid by:

both the employer and the employee.

The payroll entry for each pay period is recorded in the general journal:

or the combination journal of the business.

A business with several employees on the payroll should maintain as a feature of good cash control a special:

payroll checking account.