Question 1

Federal income taxes are withheld from wages earned, except the withholding stopseach year as soon as the employee has earned $34,900.

Accepted Answer

A) True 
 B)False

Question 2

Define controlling accounts

Accepted Answer

A controlling account is a single ledger

Question 3

Individual transactions in the Sales Journal are regularly posted to customer accounts inthe Accounts Payable ledger.

Accepted Answer

A) True 
 B)False

Question 4

Payroll taxes and employee fringe benefits sometimes amount to more than 25 percent of the wages earned by employees.

Accepted Answer

A) True 
 B)False

Question 5

When a business has more than one credit customer, a separate account receivable for each customer must be designed to show all of the following except:

Accepted Answer

A) How much each customer has purchased. 
B) How much remains to be collected from each customer. 
C) How much each customer has paid. 
D) How much sales tax each customer has paid. 
E) All of these should be included. 
A) How much each customer has purchased. 
B) How much remains to be collected from each customer. 
C) How much each customer has paid. 
D) How much sales tax each customer has paid. 
E) All of these should be included.

Question 6

Employers and employees both must pay Employment Insurance based on a percentage of the employees' total wages, up to a yearly maximum.

Accepted Answer

A) True 
 B)False

Question 7

The general rule for posting to a subsidiary ledger and its controlling account is

Accepted Answer

A) The controlling account is both debited and credited periodically for an amount or amounts equal to the sum of the debits or credits to the subsidiary ledger. 
B) The controlling account is credited periodically for an amount or amounts equal to the sum of the credits to the subsidiary ledger. 
C) A trial balance ledger. 
D) The controlling account is debited periodically for an amount or amounts equal to the sum of the debits to the subsidiary ledger. 
E) All of these answers are correct. 
A) The controlling account is both debited and credited periodically for an amount or amounts equal to the sum of the debits or credits to the subsidiary ledger. 
B) The controlling account is credited periodically for an amount or amounts equal to the sum of the credits to the subsidiary ledger. 
C) A trial balance ledger. 
D) The controlling account is debited periodically for an amount or amounts equal to the sum of the debits to the subsidiary ledger. 
E) All of these answers are correct.

Question 8

An Accounts Payable subledger is

Accepted Answer

A) A subsidiary ledger that contains a separate account for each customer that grants credit to the company. 
B) A book of original entry that is designed and used for recording only a specified type of transaction. 
C) A subsidiary ledger that contains an account for each supplier that grants credit to the company. 
D) The ledger that contains the financial statement accounts of a business. 
E) A list of the balances of all the accounts in the Accounts Receivable ledger that is added to show the total amount of accounts receivable outstanding. 
A) A subsidiary ledger that contains a separate account for each customer that grants credit to the company. 
B) A book of original entry that is designed and used for recording only a specified type of transaction. 
C) A subsidiary ledger that contains an account for each supplier that grants credit to the company. 
D) The ledger that contains the financial statement accounts of a business. 
E) A list of the balances of all the accounts in the Accounts Receivable ledger that is added to show the total amount of accounts receivable outstanding.

Federal income taxes are withheld from wages earned, except the withholding stopseach year as soon as the employee has earned $34,900.

Define controlling accounts

Individual transactions in the Sales Journal are regularly posted to customer accounts inthe Accounts Payable ledger.

Payroll taxes and employee fringe benefits sometimes amount to more than 25 percent of the wages earned by employees.

When a business has more than one credit customer, a separate account receivable for each customer must be designed to show all of the following except:

Employers and employees both must pay Employment Insurance based on a percentage of the employees' total wages, up to a yearly maximum.

The general rule for posting to a subsidiary ledger and its controlling account is

An Accounts Payable subledger is

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Filters

Exam 9: Appendix

Federal income taxes are withheld from wages earned, except the withholding stopseach year as soon as the employee has earned $34,900.

Define controlling accounts

Individual transactions in the Sales Journal are regularly posted to customer accounts inthe Accounts Payable ledger.

Payroll taxes and employee fringe benefits sometimes amount to more than 25 percent of the wages earned by employees.

When a business has more than one credit customer, a separate account receivable for each customer must be designed to show all of the following except:

Employers and employees both must pay Employment Insurance based on a percentage of the employees' total wages, up to a yearly maximum.

The general rule for posting to a subsidiary ledger and its controlling account is

An Accounts Payable subledger is

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Filters