1.
Payroll Taxes are reported to the IRS how often?
Never
Quarterly
Monthly
Semi-Monthly
2.
A Subsidiary Ledger is
A chronological list of all cash receipts
An analysis or breakdown of a balance in a specific General Ledger
Account
A chronological list of all payments made to vendors
The General Ledger
3.
The General Ledger should balance even if a Journal or
two have not been posted
True
False
4.
"Use Tax" is
primarily used when calculating the tax on tobacco products
always calculated at a higher rate than is sales tax
not applicable to business
none of the above
5.
The balance in Inventory
Should include the retail pricing of all items held for resale
Is shown as a credit balance
Is increased with each sale
None of the above
6.
Which of the following items does NOT decrease earnings:
owner's draws
advertising expense
cost of goods sold
rent expense
7.
At year-end, proprietorship profit and loss accounts are
closed to
retained earnings
owner's draw
owner's equity
earnings
8.
Which inventory account is typically not used in a manufacturing
company?
direct labor
work in progress
progress billings
raw material
9.
What is the General Ledger account called 'Contracts in
Transit' used for?
Signed financing contracts intended for sale to a financial institution
To record contracts that have been signed by the customer but not
by the dealer yet
For contracts that need approval by management
For contracts for services received, but not yet paid for
10.
What is the common use of a "Bank Reserve" account?
to include commissions paid by a bank for financing contracts which
are prepared by a dealer and sold to the bank
to hold in reserve monies to be paid out later for taxes
to reserve monies to be used as an owner's draw
to hold in reserve monies to be paid to the bank in case of damage
to the company facilities of inventory
11.
What three parties are usually involved when "flooring" inventory?
bank, customer, and dealer
bank, teller, and customer
bank, manufacturer, and dealer
bank, dealer, and investment corporation
12.
Identify which of these would be a credit account:
Cost of Goods Sold
Expenses
Assets
Common Stock
13.
In preparing annual earnings reports for a partnership,
profit is included as a credit in Retained Earnings.
True
False
14.
What "T" account entries would be made for the
following transaction?
Sell inventory wholesale for $1,000 receiving cash and depositing
it in the bank. Your cost of the inventory sold was $600.
Bank: Credit $1000
Bank: Debit $1000
Bank: Debit $1000
Bank: Credit $1000
15.
Compute the selling price of a product costing $630 when
a 30% gross profit margin is desired
$819
$810
$900
$189
16.
If the annual Federal Tax liability for FICA and Federal
Withholding is under $50,000, when does the tax deposit typically need
to be made?
by the 30th of each month
by the end of business the next day
by the first full moon after the Monday of the third week
by the 15th of the following month
17.
What journal would most commonly be used for recording
the down payment of a truck purchased for company use?
Purchase Journal
Cash Disbursements Journal
Sales Journal
Cash Receipts Journal
Payroll Journal
General Journal
Standard Entries Journal
18.
A bookkeeper can become personally responsible for nonpayment
of company Federal Payroll Taxes
When the bookkeeper is a man over 40 years old, earning less than $10
per hour
Never
Only if the bookkeeper is a CPA
The bookkeeper makes the decision as to who is going to be paid, or
not
19.
What are the 'straight-line depreciation' allowance terms,
in years, under today's tax terms for Commercial Buildings?
27.5
39
39.5
none allowed
20.
The lookback period is defined as the 4 preceding quarters ending in
June of the previous calendar year
True
False
21.
Compute the Percentage of Completion assuming the following
information: total bid $60,000; total estimated cost of construction
$50,000; amount spent to date $5,000.
What is the Percentage of Completion?
10%
8%
83%
100%
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