Question 1

A check deposited that is not paid because the drawer did not have sufficient funds is called an NSF check. T/F

Accepted Answer

True

Question 2

A credit journal entry to the cash short and over account is used to record a cash overage.T/F

Accepted Answer

True

Question 3

The bank in which the depositor has money on deposit is known as the drawer. T/F

Accepted Answer

False

Question 4

On a deposit ticket, checks should be listed in numerical order. T/F

Accepted Answer

False

Question 5

The process of bringing the book and the bank balance into agreement is called

Accepted Answer

reconciling the bank statement

Question 6

To a business, cash includes currency, coins, checks, money in the checking accounts, money orders, and bank cashier\'s checks.T/F

Accepted Answer

True

Question 7

A depositor may endorse checks with a rubber stampT/F

Accepted Answer

True

Question 8

A restrictive endorsement means that the check is payable to any bearer. T/F

Accepted Answer

False

Question 9

If, in the effort to prove cash, a shortage is found, the amount is treated as a(n)

Accepted Answer

Expense

Question 10

The term \"cash\" has several different meanings. T/F

Accepted Answer

True

Question 11

The petty cash payments record indicates classified expenditures as follows: Automobile Expense, $20; Supplies Expense, $12; Postage Expense, $6; and Miscellaneous Expense, $5. The journal entry to replenish the petty cash fund would include a credit to Cash for

Accepted Answer

$43

Question 12

To reconcile the bank statement, which of the following amounts would be added to the checkbook balance?

Accepted Answer

amounts collected by the bank for the depositor\'s account

Question 13

To sign the back of a check with the name of the company and \"Pay to any bank\" is an example of a

Accepted Answer

restrictive endorsement.

Question 14

The bank statement for a checking account normally shows the

Accepted Answer

amount of deposits and other credits added during the period.

Question 15

Businesses commonly use cash registers with tapes that accumulate a record of the day\'s cash receipts. T/F

Accepted Answer

True

Question 16

Payments from the petty cash fund should not be made without obtaining some sort of receipt in return. T/F

Accepted Answer

True

Question 17

Posting must be done from the petty cash payments record. T/F

Accepted Answer

False

Question 18

A debit to Accounts Receivable for $50 and a credit to Cash for $50 would be an accurate journal entry to record

Accepted Answer

not sufficient funds (NSF) checks.

Question 19

The depositor who orders the bank to pay a certain amount of money is known as the drawee T/F

Accepted Answer

False

Question 20

A petty cash fund of $200 has $17 in cash, $180 in petty cash vouchers, and $3 in miscellaneous receipts not included with the petty cash vouchers. The debit to the Cash Short and Over would be

Accepted Answer

$0

Question 21

When a check is written to replenish the petty cash fund, it is entered in the journal by debiting the proper accounts indicated in the Distributions columns of the petty cash record and by crediting Cash. T/F

Accepted Answer

True

Question 22

To reconcile the bank statement, which of the following amounts would be added to the bank statement balance?

Accepted Answer

deposits in transit

Question 23

A special form of receipt showing the name of the payee, the purpose of the payment, and the account to be charged for each petty cash payment is known as a

Accepted Answer

petty cash voucher

Question 24

Each check should be identified by its

Accepted Answer

ABA number.

Question 25

In reconciling a bank statement, the bank statement balance is $1,000 and the balance per books is $1,205. A bank service charge is $5; a deposit in transit totals $500; and outstanding checks total $300. The journal entry for a bank service charge would include

Accepted Answer

debiting Miscellaneous Expense and crediting Cash.

Question 26

A petty cash fund of $200 has $17 in cash, $180 in petty cash vouchers, and $3 in miscellaneous receipts not included with the petty cash vouchers. The proper journal entry to replenish the fund would include a credit to Cash for

Accepted Answer

$183

Question 27

The person directed to receive the money indicated by a check is known as the payee.T/F

Accepted Answer

True

Question 28

Check No. 450, a payment of $45 for the telephone bill, was incorrectly entered on the check stub as $54. Which of the following adjustments needs to be made?

Accepted Answer

increase the book balance

Question 29

If the cash short and over account has a debit balance at the end of the fiscal year, the balance represents a revenue. T/F

Accepted Answer

False

Question 30

Whenever the bank mails a credit memo to the depositor indicating the amount of interest credited to the account, the transaction that would be entered in the accounting records of the depositor would include

Accepted Answer

debiting Cash and crediting Interest Earned.

Question 31

A depositor is not responsible or liable to the bank for items deposited that are not honored when presented for payment. T/F

Accepted Answer

False

Question 32

Cash usually means only currency and coins.T/F

Accepted Answer

False

Question 33

If the person who is named as payee on a check transfers the right to receive the money by signing his/her name on the back of the check, the signature is called a

Accepted Answer

Blank endorsement

Question 34

When it is necessary to replenish the petty cash fund, the petty cashier prepares a statement of payments. T/F

Accepted Answer

False

Question 35

A depositor may endorse checks with a rubber stamp. T/F

Accepted Answer

True

Question 36

Sandra Wilson is paid one and one-half times the regular hourly rate for all hours worked in excess of 40 hours per week and double time for work on Sunday. Wilson\'s regular rate is $10 per hour. During the week ended July 3, she worked 9 hours each day from Monday through Friday, 6 hours on Saturday, and 4 hours on Sunday. Wilson\'s overtime earnings for the week ended July 3 are

Accepted Answer

$245

Question 37

The earnings base, against which the FICA tax is applied, and the tax rate have been changed several times since the law was first enacted and can be changed by Congress at any time in the future. T/F

Accepted Answer

True

Question 38

FICA taxes include amounts for both Social Security and Medicare programs T/F

Accepted Answer

True

Question 39

Compensation normally expressed in biweekly, monthly, or annual terms for managerial or administrative services is called

Accepted Answer

Salary

Question 40

The Fair Labor Standards Act provides which of the following minimum rates to be paid to employees for all hours worked over 40 hours per week?

Accepted Answer

one and one-half times the regular rate

Question 41

Under federal law, employers are required to withhold a percentage of the employees\' wages for health insurance premiums. T/F

Accepted Answer

False

Question 42

When a single-check for payroll is prepared and deposited into a special payroll bank account, which of the following entries is made to record the deposit?

Accepted Answer

debit Payroll Cash; credit Cash

Question 43

The Medicare tax rate is applied to all employee earnings; there is no maximum T/F

Accepted Answer

True

Question 44

Examples of employees include all of the following EXCEPT

Accepted Answer

Public accountants

Question 45

An amount of an employee\'s gross pay which is exempt from federal income tax withholding is a(n)

Accepted Answer

withholding allowance

Question 46

The Fair Labor Standards Act provides that all employees covered by the act must be paid one and one-half times the regular rate for all hours worked over 40 per week. T/F

Accepted Answer

True

Question 47

Employers usually prepare which of the following types of payroll records?

Accepted Answer

payroll register, employee earnings record, and payroll check

Question 48

The employee\'s earnings record is a summary of the earnings of all employees for each pay period.T/F

Accepted Answer

False

Question 49

Under federal law, employers are required to withhold certain amounts from the total earnings of each employee to be applied toward the payment of the employee\'s federal income tax. T/F

Accepted Answer

True

Question 50

Compensation for managerial or administrative services usually is expressed in biweekly, monthly, or annual terms and is called wages. T/F

Accepted Answer

False

Question 51

According to the assumption used in this text, employers are required to withhold Social Security taxes on the first ____ of each employee\'s earnings.

Accepted Answer

$110,100

Question 52

FICA taxes include amounts for both Social Security and Medicare programs. T/F

Accepted Answer

True

Question 53

A separate record of each employee\'s earnings is called a(n)

Accepted Answer

employee earning record

Question 54

A purely manual system of record keeping is one in which all records, journals, and ledgers are prepared by hand. T/F

Accepted Answer

True

Question 55

The Social Security Tax Payable account is debited for Social Security taxes withheld and Social Security taxes imposed on the employer. T/F

Accepted Answer

False

Question 56

Compensation expressed in terms of hours, weeks, or units produced for skilled or unskilled labor is usually referred to as salary. T/F

Accepted Answer

False

Question 57

Every individual who performs services for a business is considered to be an employee. T/F

Accepted Answer

False

Question 58

An electronic payroll system is one in which data is processed using computers equipped with payroll software. T/F

Accepted Answer

True

Question 59

Pension payments are required deductions from an employee\'s gross earnings. T/F

Accepted Answer

False

Question 60

Jillian Diaz receives a regular salary of $1,500 a month and is entitled to overtime pay at the rate of one and one-half times the regular hourly rate for any time worked in excess of 40 hours per week. Diaz\'s overtime pay rate is

Accepted Answer

$12.98

Question 61

The outputs from a manual or an electronic payroll accounting system include all of the following EXCEPT

Accepted Answer

Time cards

Question 62

Employers may use the wage-bracket method to determine the amount of tax to be withheld from an employee\'s pay. T/F

Accepted Answer

True

Question 63

The account that is credited with amounts withheld from an employee\'s earnings for any pension plan contribution is

Accepted Answer

Pension Plan Deductions Payable

Question 64

The payroll register replaces the general journal in most businesses. T/F

Accepted Answer

False

APA1111C Ch 7, 8, 9

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