Question 1

Which of the following payroll-related items is paid only by the employee?

Accepted Answer

A) FICA tax 
B) Union dues 
C) State unemployment tax 
D) Federal unemployment tax 
A) FICA tax 
B) Union dues 
C) State unemployment tax 
D) Federal unemployment tax

Question 2

Carolina Corporation reported the following account balances at the beginning and end of 2010:
   Determine the amount of cash paid for (
A)supplies,(b)salaries,and (c)inventory during 2010.

Accepted Answer

(a)$4,900 + $2,600 - $3,800 = $3,700 cas

Question 3

The total of the accounts payable subsidiary ledger is equal to:

Accepted Answer

A) The balance in the general ledger purchases account 
B) The balance in the general ledger accounts receivable account 
C) The total amount the company owes to those provided inventory to the company 
D) The total amount of the liabilities in the general ledger 
A) The balance in the general ledger purchases account 
B) The balance in the general ledger accounts receivable account 
C) The total amount the company owes to those provided inventory to the company 
D) The total amount of the liabilities in the general ledger

Question 4

Park Corp had a beginning balance in its prepaid rent account of $10,000 and an ending balance of $7,500.Rent expense for the year was $12,000.How much cash did Park pay for rent during the year?

Accepted Answer

A) $14,500 
B) $9,500 
C) $12,000 
D) $7,500 
A) $14,500 
B) $9,500 
C) $12,000 
D) $7,500

Question 5

The purpose of the account payable subsidiary ledgers is:

Accepted Answer

A) Keep track of the various products being manufactured 
B) Monitor the balance in the various cash accounts at banks 
C) Identify individuals and companies who the company owes money 
D) Identify the cash inflow expected from people who owe money to the company 
A) Keep track of the various products being manufactured 
B) Monitor the balance in the various cash accounts at banks 
C) Identify individuals and companies who the company owes money 
D) Identify the cash inflow expected from people who owe money to the company

Question 6

BLP Corporation reported wages expense of $224,000,wages payable of $89,400 at the beginning of the year,and wages payable of $71,300 at the end of the year.Cash payments for wages during the year were:

Accepted Answer

A) $205,900 
B) $224,000 
C) $242,100 
D) $295,300 
A) $205,900 
B) $224,000 
C) $242,100 
D) $295,300

Question 7

The payroll tax which is paid by both the employee and the employer is:

Accepted Answer

A) FICA 
B) FUTA 
C) SUTA 
D) Federal Income Taxes 
A) FICA 
B) FUTA 
C) SUTA 
D) Federal Income Taxes

Question 8

The gross method records the purchase discount.

Accepted Answer

A) When it is taken 
B) When the inventory is purchased 
C) When the inventory is sold 
D) When the inventory is returned 
A) When it is taken 
B) When the inventory is purchased 
C) When the inventory is sold 
D) When the inventory is returned

Question 9

In a perpetual inventory system,if the terms of sale are FOB shipping point the journal entry to record the payment of freight charges on purchased merchandise includes a:

Accepted Answer

A) debit to Inventory 
B) credit to Freight Out 
C) credit to Accounts Payable 
D) debit to Cost of Goods Sold 
A) debit to Inventory 
B) credit to Freight Out 
C) credit to Accounts Payable 
D) debit to Cost of Goods Sold

Question 10

Which of the following payroll items is an expense to the employer?

Accepted Answer

A) Federal income taxes 
B) Union dues 
C) State unemployment taxes 
D) United way contributions by employee 
A) Federal income taxes 
B) Union dues 
C) State unemployment taxes 
D) United way contributions by employee

Question 11

Which of the following entries is made when a discount is taken and the periodic system uses the gross method?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 12

An increase in prepaid insurance indicates that

Accepted Answer

A) insurance expense and insurance paid were equal 
B) no insurance expense was recorded during the period 
C) insurance expense for the period exceeded insurance paid 
D) insurance paid during the period exceeded insurance expense 
A) insurance expense and insurance paid were equal 
B) no insurance expense was recorded during the period 
C) insurance expense for the period exceeded insurance paid 
D) insurance paid during the period exceeded insurance expense

Question 13

Match between columns
                        Premises: Account used by the periodic system to record the cost of goods purchased that did not meet required specifications.
When the cost of inventory is recorded assuming the discount available will be taken.
Account used by both the period and perpetual inventory system to show the cost the goods held for resale.
A journal used to record transactions that occur frequently and in the same manner.
Account used to keep track of inventory used in a manufacturing process.
This inventory system determines the amount of inventory by physical count and calculates the cost of goods sold only at the end of specified time periods.
This account keeps track of the discounts taken under the periodic inventory system.
This inventory system keeps track of the amount of inventory and cost of good sold continuously.
This ledger describes the details of a specific general ledger account.
The account used by the periodic inventory system to account for the purchase of products for resale.

Accepted Answer

The Answer of Periodic inventory system and Special Journal and is...

Question 14

Which of the following entries is made when a discount is not taken and the perpetual system uses the net method?

Accepted Answer

A)   
B)   
C)   
D)   
A)   
B)   
C)   
D)

Question 15

The purchase discount lost accounts is used when with -

Accepted Answer

A) The gross method is used with periodic system and the terms of the discount are not met. 
B) The net method is used with the perpetual system and the terms of the discount are met. 
C) The gross method is used with the periodic system the terms of the discount are not met. 
D) The net method applied to either the periodic or perpetual systems and the terms of the discount are not met. 
A) The gross method is used with periodic system and the terms of the discount are not met. 
B) The net method is used with the perpetual system and the terms of the discount are met. 
C) The gross method is used with the periodic system the terms of the discount are not met. 
D) The net method applied to either the periodic or perpetual systems and the terms of the discount are not met.

Question 16

Which of the following entries reflects the use of a perpetual inventory system?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 17

In a perpetual inventory system,the journal entry to record the sale of merchandise on account would include a:

Accepted Answer

A) debit to Cost of Goods Sold 
B) credit to Accounts Payable 
C) debit to Inventory 
D) credit to Cash 
A) debit to Cost of Goods Sold 
B) credit to Accounts Payable 
C) debit to Inventory 
D) credit to Cash

Question 18

If wages payable increases between the beginning and end of a month,this indicates that

Accepted Answer

A) Wages paid were more than wages expense for the month. 
B) Wages expense was more than wages paid for the month. 
C) All wages expense for the month were paid as incurred. 
D) No wages were paid during the period 
A) Wages paid were more than wages expense for the month. 
B) Wages expense was more than wages paid for the month. 
C) All wages expense for the month were paid as incurred. 
D) No wages were paid during the period

Question 19

Explain the difference between a periodic inventory system and a perpetual one.If a firm uses a perpetual inventory system,it still has to physically count the inventory on hand at least once a year.Why?

Accepted Answer

Under a periodic inventory system,the nu

Question 20

Payroll deductions are a(n)______ to the employer at the time they are withheld.

Accepted Answer

A) expense 
B) loss 
C) liability 
D) revenue 
A) expense 
B) loss 
C) liability 
D) revenue

Which of the following payroll-related items is paid only by the employee?

Carolina Corporation reported the following account balances at the beginning and end of 2010: Determine the amount of cash paid for ( A)supplies,(b)salaries,and (c)inventory during 2010.

The total of the accounts payable subsidiary ledger is equal to:

Park Corp had a beginning balance in its prepaid rent account of $10,000 and an ending balance of $7,500.Rent expense for the year was $12,000.How much cash did Park pay for rent during the year?

The purpose of the account payable subsidiary ledgers is:

BLP Corporation reported wages expense of $224,000,wages payable of $89,400 at the beginning of the year,and wages payable of $71,300 at the end of the year.Cash payments for wages during the year were:

The payroll tax which is paid by both the employee and the employer is:

The gross method records the purchase discount.

In a perpetual inventory system,if the terms of sale are FOB shipping point the journal entry to record the payment of freight charges on purchased merchandise includes a:

Which of the following payroll items is an expense to the employer?

Which of the following entries is made when a discount is taken and the periodic system uses the gross method?

An increase in prepaid insurance indicates that

Which of the following entries is made when a discount is not taken and the perpetual system uses the net method?

The purchase discount lost accounts is used when with -

Which of the following entries reflects the use of a perpetual inventory system?

In a perpetual inventory system,the journal entry to record the sale of merchandise on account would include a:

If wages payable increases between the beginning and end of a month,this indicates that

Explain the difference between a periodic inventory system and a perpetual one.If a firm uses a perpetual inventory system,it still has to physically count the inventory on hand at least once a year.Why?

Payroll deductions are a(n)______ to the employer at the time they are withheld.

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

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Exam 8: Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Which of the following payroll-related items is paid only by the employee?

Carolina Corporation reported the following account balances at the beginning and end of 2010: Determine the amount of cash paid for ( A)supplies,(b)salaries,and (c)inventory during 2010.

The total of the accounts payable subsidiary ledger is equal to:

Park Corp had a beginning balance in its prepaid rent account of $10,000 and an ending balance of $7,500.Rent expense for the year was $12,000.How much cash did Park pay for rent during the year?

The purpose of the account payable subsidiary ledgers is:

BLP Corporation reported wages expense of $224,000,wages payable of $89,400 at the beginning of the year,and wages payable of $71,300 at the end of the year.Cash payments for wages during the year were:

The payroll tax which is paid by both the employee and the employer is:

The gross method records the purchase discount.

In a perpetual inventory system,if the terms of sale are FOB shipping point the journal entry to record the payment of freight charges on purchased merchandise includes a:

Which of the following payroll items is an expense to the employer?

Which of the following entries is made when a discount is taken and the periodic system uses the gross method?

An increase in prepaid insurance indicates that

Which of the following entries is made when a discount is not taken and the perpetual system uses the net method?

The purchase discount lost accounts is used when with -

Which of the following entries reflects the use of a perpetual inventory system?

In a perpetual inventory system,the journal entry to record the sale of merchandise on account would include a:

If wages payable increases between the beginning and end of a month,this indicates that

Explain the difference between a periodic inventory system and a perpetual one.If a firm uses a perpetual inventory system,it still has to physically count the inventory on hand at least once a year.Why?

Payroll deductions are a(n)______ to the employer at the time they are withheld.

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

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