Question 1

To compute the present value of a bond, both the ______________ payments and the ___________ amount must be discounted.

Accepted Answer

The answer of To compute the present value of a...

Question 2

If a company records merchandise it returns to suppliers in the general journal, then

Accepted Answer

A)  a posting must be made only to the accounts payable control account. 
B)  a posting must be made only to the accounts payable subsidiary ledger account. 
C)  a dual posting must be made. 
D)  there will be a debit to Inventory. 
A)  a posting must be made only to the accounts payable control account. 
B)  a posting must be made only to the accounts payable subsidiary ledger account. 
C)  a dual posting must be made. 
D)  there will be a debit to Inventory.

Question 3

A ________________ liability that may become an actual liability in the future, is called a ________________ liability.

Accepted Answer

The answer of A ________________ liability that may become an...

Question 4

Two federal taxes which are levied against employees' wages that must be deducted in arriving at net pay are (1) ________________ taxes and (2) _______________ taxes.

Accepted Answer

The answer of Two federal taxes which are levied against...

Question 5

Control over timekeeping does not include

Accepted Answer

A)  having one employee punch the time cards for several employees in the same work area. 
B)  time clock procedure monitoring by a supervisor. 
C)  pay period time reports kept by a supervisor for salaried personnel. 
D)  overtime approval by a supervisor. 
A)  having one employee punch the time cards for several employees in the same work area. 
B)  time clock procedure monitoring by a supervisor. 
C)  pay period time reports kept by a supervisor for salaried personnel. 
D)  overtime approval by a supervisor.

Question 6

The balance of a control account in the general ledger

Accepted Answer

A)  must always be zero. 
B)  must equal the amount of total assets. 
C)  is always greater than the composite balance of individual accounts in a related subsidiary ledger. 
D)  must equal the composite balance of individual accounts in a related subsidiary ledger. 
A)  must always be zero. 
B)  must equal the amount of total assets. 
C)  is always greater than the composite balance of individual accounts in a related subsidiary ledger. 
D)  must equal the composite balance of individual accounts in a related subsidiary ledger.

Question 7

Contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will actually occur.

Accepted Answer

A) True 
 B)False

Question 8

Proving the postings of a single-column purchases journal would involve comparing the

Accepted Answer

A)  general ledger posting to Accounts Payable to the debit postings of the accounts receivable subsidiary ledger. 
B)  general ledger debit posting to Accounts Payable to the general ledger credit posting to Inventory. 
C)  general ledger credit posting to Accounts Payable to the general ledger debit posting to Inventory. 
D)  debit postings to the accounts receivable subsidiary ledger to the credit postings to the accounts payable subsidiary ledger. 
A)  general ledger posting to Accounts Payable to the debit postings of the accounts receivable subsidiary ledger. 
B)  general ledger debit posting to Accounts Payable to the general ledger credit posting to Inventory. 
C)  general ledger credit posting to Accounts Payable to the general ledger debit posting to Inventory. 
D)  debit postings to the accounts receivable subsidiary ledger to the credit postings to the accounts payable subsidiary ledger.

Question 9

When the periodic payments are not equal in each period, the future value can be computed by using a future value of an annuity table.

Accepted Answer

A) True 
 B)False

Question 10

A company will incur product repair costs in the future if products that it sells currently under warranty are brought in for repair during the warranty period. The company will also incur bad debt expense in the future if customers who buy on credit currently are unable to pay their accounts. Are the accounting procedures for these two contingent costs (warranty expense and bad debt expense) related to or guided by the same accounting principle? Briefly explain.

Accepted Answer

The accounting procedures for both warra

Question 11

FICA taxes do not provide workers with

Accepted Answer

A)  life insurance. 
B)  supplemental retirement. 
C)  employment disability. 
D)  medical benefits. 
A)  life insurance. 
B)  supplemental retirement. 
C)  employment disability. 
D)  medical benefits.

Question 12

A sales journal is used to record

Accepted Answer

A)  only cash sales of merchandise. 
B)  sales of all assets on credit and for cash. 
C)  only credit sales of merchandise. 
D)  credit sales of merchandise, sales returns and allowances, and sales discounts. 
A)  only cash sales of merchandise. 
B)  sales of all assets on credit and for cash. 
C)  only credit sales of merchandise. 
D)  credit sales of merchandise, sales returns and allowances, and sales discounts.

Question 13

Employees claim allowances for income tax withholding on

Accepted Answer

A)  Form W-4. 
B)  Form W-2. 
C)  Form 1040. 
D)  Schedule A. 
A)  Form W-4. 
B)  Form W-2. 
C)  Form 1040. 
D)  Schedule A.

Question 14

Postretirement benefits consist of payments by employers to retired employees for

Accepted Answer

A)  health care and life insurance only. 
B)  health care and pensions only. 
C)  life insurance and pensions only. 
D)  health care, life insurance, and pensions. 
A)  health care and life insurance only. 
B)  health care and pensions only. 
C)  life insurance and pensions only. 
D)  health care, life insurance, and pensions.

Question 15

Which of the following is not a true statement about the daily posting of the sales journal?

Accepted Answer

A)  There is a debit posting to accounts in the accounts receivable subsidiary ledger. 
B)  There is no credit posting. 
C)  The reference column in the sales journal is checked when the posting is complete for each entry in the journal. 
D)  The invoice number supporting the sales transaction is posted to the reference column in the subsidiary ledger. 
A)  There is a debit posting to accounts in the accounts receivable subsidiary ledger. 
B)  There is no credit posting. 
C)  The reference column in the sales journal is checked when the posting is complete for each entry in the journal. 
D)  The invoice number supporting the sales transaction is posted to the reference column in the subsidiary ledger.

Question 16

Jose Reynolds deposited $10,000 in an account paying interest of 4% compounded annually. What amount will be in the account at the end of 4 years?

Accepted Answer

Use Table 1.

@#IMG-DLM&

$10,

Question 17

Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the

Accepted Answer

A)  sales journal. 
B)  cash receipts journal. 
C)  purchases journal. 
D)  cash payments journal. 
A)  sales journal. 
B)  cash receipts journal. 
C)  purchases journal. 
D)  cash payments journal.

Question 18

If the present value of lease payments represents substantially all of the fair value of the leased property, the

Accepted Answer

A)  conditions are met for the lease to be considered a finance lease. 
B)  lease is uneconomical and should not be entered into. 
C)  lease may be classified as an operating lease. 
D)  recording of a lease liability is optional-that is, the off-balance-sheet approach can be elected. 
A)  conditions are met for the lease to be considered a finance lease. 
B)  lease is uneconomical and should not be entered into. 
C)  lease may be classified as an operating lease. 
D)  recording of a lease liability is optional-that is, the off-balance-sheet approach can be elected.

Question 19

Ann Hech's regular hourly wage is $18 an hour. She receives overtime pay at the rate of time and a half. The FICA tax rate is 7.65%. Ann is paid every two weeks. For the first pay period in January, Ann worked 86 hours of which 6 were overtime hours. Ann's federal income tax withholding is $400 and her state income tax withholding is $170. Ann has authorized that $50 be withheld from her check each pay period for savings bonds.
Instructions
Compute Ann Hech's gross earnings and net pay for the pay period showing each payroll deduction in arriving at net pay.

Accepted Answer

Gross Earn

Question 20

Which of the following is not performed by the payroll department?

Accepted Answer

A)  Preparation of payroll checks 
B)  Maintaining payroll records 
C)  Signing of payroll checks 
D)  Preparation of payroll tax returns 
A)  Preparation of payroll checks 
B)  Maintaining payroll records 
C)  Signing of payroll checks 
D)  Preparation of payroll tax returns

To compute the present value of a bond, both the ____ payments and the _ amount must be discounted.

If a company records merchandise it returns to suppliers in the general journal, then

A liability that may become an actual liability in the future, is called a liability.

Two federal taxes which are levied against employees' wages that must be deducted in arriving at net pay are (1) __ taxes and (2) _ taxes.

Control over timekeeping does not include

The balance of a control account in the general ledger

Contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will actually occur.

Proving the postings of a single-column purchases journal would involve comparing the

When the periodic payments are not equal in each period, the future value can be computed by using a future value of an annuity table.

FICA taxes do not provide workers with

A sales journal is used to record

Employees claim allowances for income tax withholding on

Postretirement benefits consist of payments by employers to retired employees for

Which of the following is not a true statement about the daily posting of the sales journal?

Jose Reynolds deposited $10,000 in an account paying interest of 4% compounded annually. What amount will be in the account at the end of 4 years?

Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the

If the present value of lease payments represents substantially all of the fair value of the leased property, the

Which of the following is not performed by the payroll department?

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 15: Accounting Principles and Contingent Liabilities in Business Operations

To compute the present value of a bond, both the ______________ payments and the ___________ amount must be discounted.

If a company records merchandise it returns to suppliers in the general journal, then

A ________________ liability that may become an actual liability in the future, is called a ________________ liability.

Two federal taxes which are levied against employees' wages that must be deducted in arriving at net pay are (1) ________________ taxes and (2) _______________ taxes.

Control over timekeeping does not include

The balance of a control account in the general ledger

Contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will actually occur.

Proving the postings of a single-column purchases journal would involve comparing the

When the periodic payments are not equal in each period, the future value can be computed by using a future value of an annuity table.

FICA taxes do not provide workers with

A sales journal is used to record

Employees claim allowances for income tax withholding on

Postretirement benefits consist of payments by employers to retired employees for

Which of the following is not a true statement about the daily posting of the sales journal?

Jose Reynolds deposited $10,000 in an account paying interest of 4% compounded annually. What amount will be in the account at the end of 4 years?

Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the

If the present value of lease payments represents substantially all of the fair value of the leased property, the

Which of the following is not performed by the payroll department?

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters

To compute the present value of a bond, both the ____ payments and the _ amount must be discounted.

A liability that may become an actual liability in the future, is called a liability.

Two federal taxes which are levied against employees' wages that must be deducted in arriving at net pay are (1) __ taxes and (2) _ taxes.