Question 1

Some companies use company credit cards that eliminate the need for most petty cash transactions.

Accepted Answer

A) True 
 B)False  True

Question 2

Most businesses can continue to operate indefinitely even if they do not make a profit.

Accepted Answer

A) True 
 B)False  False

Question 3

Using a spreadsheet program is an efficient way to complete a bank reconciliation.

Accepted Answer

A) True 
 B)False  True

Question 4

An employee worked 40 hours at $12 per hour and 5 overtime hours at 1.5 times regular pay. Federal income taxes were deducted from the employee's pay at a rate of 20 percent. Social Security and Medicare taxes were deducted at a combined rate of 7.65 percent. What was the employee's net pay?

Accepted Answer

A)  $412.40 
B)  $480.00 
C)  $570.25 
D)  $600.50 
A)  $412.40 
B)  $480.00 
C)  $570.25 
D)  $600.50

Question 5

Federal income tax is a mandatory payroll deduction under federal law.

Accepted Answer

A) True 
 B)False

Question 6

Federal income taxes are withheld from an employee's pay on the basis of information given on a(n) :

Accepted Answer

A)  Form I-9. 
B)  Form W-2. 
C)  Form W-4. 
D)  Both B and C 
A)  Form I-9. 
B)  Form W-2. 
C)  Form W-4. 
D)  Both B and C

Question 7

A cash flow statement is a financial document that:

Accepted Answer

A)  shows incoming and outgoing cash for a given period. 
B)  shows the income, expenses, and profit or loss of an organization for a given period of time. 
C)  is typically created once each fiscal year. 
D)  Both B and C 
A)  shows incoming and outgoing cash for a given period. 
B)  shows the income, expenses, and profit or loss of an organization for a given period of time. 
C)  is typically created once each fiscal year. 
D)  Both B and C

Question 8

The earnings, deductions, and net pay for employees are shown on a(n) :

Accepted Answer

A)  employee's W-2 form. 
B)  payroll register. 
C)  cash flow statement. 
D)  Both A and B 
A)  employee's W-2 form. 
B)  payroll register. 
C)  cash flow statement. 
D)  Both A and B

Question 9

A document that shows items requested and an approval to purchase the items is a(n) :

Accepted Answer

A)  invoice. 
B)  purchase order. 
C)  purchase requisition. 
D)  receiving report. 
A)  invoice. 
B)  purchase order. 
C)  purchase requisition. 
D)  receiving report.

Question 10

Budgets affect managers at all levels of the company, but they typically do not affect other employees.

Accepted Answer

A) True 
 B)False

Question 11

Deductions may be made from an employee's pay for which of the following?

Accepted Answer

A)  Income tax 
B)  Social Security tax 
C)  Medicare tax 
D)  All the above 
A)  Income tax 
B)  Social Security tax 
C)  Medicare tax 
D)  All the above

Question 12

Match between columns
                        Premises: A 12-month period used for accounting purposes
An employee's final earnings after taxes and other payroll deductions are made
The amount by which expenses exceed income
The financial claims to the assets of the organization by the stockholders after all debts have been paid
Debts of an organization that must be paid in the future
The amount by which income exceeds expenses
Money and anything of material value owned by an organization
A company manager who is in charge of the accounting function of a business or organization
Money kept on hand to pay small fees or charges incurred by the company
A computer program that handles accounting functions as well as other types of business applications and can be used to generate financial statements

Accepted Answer

The Answer of loss and payroll register and assets and is...

Question 13

The terms on an invoice are 1/10, net 30. The amount is paid within two days of receiving the invoice. The total before the discount is $250. What is the discount amount?

Accepted Answer

A)  $1.50 
B)  $2.50 
C)  $7.50 
D)  $25.50 
A)  $1.50 
B)  $2.50 
C)  $7.50 
D)  $25.50

Question 14

A plan that includes projected income and expenses for a business for a given time period is a(n) :

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  cash flow statement. 
D)  budget. 
A)  balance sheet. 
B)  income statement. 
C)  cash flow statement. 
D)  budget.

Question 15

Most state governments do not have mandatory state income taxes.

Accepted Answer

A) True 
 B)False

Question 16

A goal of businesses is to make more money than is spent in operating the business.

Accepted Answer

A) True 
 B)False

Question 17

A financial document that shows the assets, liabilities, and owner's equity of an organization on a given date is a(n) :

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  cash flow statement. 
D)  budget. 
A)  balance sheet. 
B)  income statement. 
C)  cash flow statement. 
D)  budget.

Question 18

Owner's equity is the financial claims to the assets of the organization by the owner after all debts have been paid.

Accepted Answer

A) True 
 B)False

Question 19

To verify that the items received are the items you ordered, compare the packing slip and items received with the:

Accepted Answer

A)  invoice. 
B)  purchase order. 
C)  purchase requisition. 
D)  receiving report. 
A)  invoice. 
B)  purchase order. 
C)  purchase requisition. 
D)  receiving report.

Question 20

The process of comparing and checking company records against those shown on a bank statement to determine whether the records are in agreement is called a bank reconciliation.

Accepted Answer

A) True 
 B)False

Some companies use company credit cards that eliminate the need for most petty cash transactions.

Most businesses can continue to operate indefinitely even if they do not make a profit.

Using a spreadsheet program is an efficient way to complete a bank reconciliation.

An employee worked 40 hours at $12 per hour and 5 overtime hours at 1.5 times regular pay. Federal income taxes were deducted from the employee's pay at a rate of 20 percent. Social Security and Medicare taxes were deducted at a combined rate of 7.65 percent. What was the employee's net pay?

Federal income tax is a mandatory payroll deduction under federal law.

Federal income taxes are withheld from an employee's pay on the basis of information given on a(n) :

A cash flow statement is a financial document that:

The earnings, deductions, and net pay for employees are shown on a(n) :

A document that shows items requested and an approval to purchase the items is a(n) :

Budgets affect managers at all levels of the company, but they typically do not affect other employees.

Deductions may be made from an employee's pay for which of the following?

The terms on an invoice are 1/10, net 30. The amount is paid within two days of receiving the invoice. The total before the discount is $250. What is the discount amount?

A plan that includes projected income and expenses for a business for a given time period is a(n) :

Most state governments do not have mandatory state income taxes.

A goal of businesses is to make more money than is spent in operating the business.

A financial document that shows the assets, liabilities, and owner's equity of an organization on a given date is a(n) :

Owner's equity is the financial claims to the assets of the organization by the owner after all debts have been paid.

To verify that the items received are the items you ordered, compare the packing slip and items received with the:

The process of comparing and checking company records against those shown on a bank statement to determine whether the records are in agreement is called a bank reconciliation.

Entering the Workforce

Becoming a Professional

Managing and Organizing Yourself

Working Ethically

Understanding the Workplace Team

Developing Customer Focus

Improving Communication Skills

Communicating With Technology

Developing Presentation Skills

Planning Meetings and Events

Managing Physical Records

Managing Electronic Records and Mail

Coordinating Business Travel

Seeking Employment

Leading With Confidence

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Exam 14: Understanding Financial Documents

Some companies use company credit cards that eliminate the need for most petty cash transactions.

Most businesses can continue to operate indefinitely even if they do not make a profit.

Using a spreadsheet program is an efficient way to complete a bank reconciliation.

An employee worked 40 hours at $12 per hour and 5 overtime hours at 1.5 times regular pay. Federal income taxes were deducted from the employee's pay at a rate of 20 percent. Social Security and Medicare taxes were deducted at a combined rate of 7.65 percent. What was the employee's net pay?

Federal income tax is a mandatory payroll deduction under federal law.

Federal income taxes are withheld from an employee's pay on the basis of information given on a(n) :

A cash flow statement is a financial document that:

The earnings, deductions, and net pay for employees are shown on a(n) :

A document that shows items requested and an approval to purchase the items is a(n) :

Budgets affect managers at all levels of the company, but they typically do not affect other employees.

Deductions may be made from an employee's pay for which of the following?

The terms on an invoice are 1/10, net 30. The amount is paid within two days of receiving the invoice. The total before the discount is $250. What is the discount amount?

A plan that includes projected income and expenses for a business for a given time period is a(n) :

Most state governments do not have mandatory state income taxes.

A goal of businesses is to make more money than is spent in operating the business.

A financial document that shows the assets, liabilities, and owner's equity of an organization on a given date is a(n) :

Owner's equity is the financial claims to the assets of the organization by the owner after all debts have been paid.

To verify that the items received are the items you ordered, compare the packing slip and items received with the:

The process of comparing and checking company records against those shown on a bank statement to determine whether the records are in agreement is called a bank reconciliation.

Entering the Workforce

Becoming a Professional

Managing and Organizing Yourself

Working Ethically

Understanding the Workplace Team

Developing Customer Focus

Improving Communication Skills

Communicating With Technology

Developing Presentation Skills

Planning Meetings and Events

Managing Physical Records

Managing Electronic Records and Mail

Coordinating Business Travel

Seeking Employment

Leading With Confidence

Filters