Question 1

A payroll service is a company that handles payments to employees, taxes, and related functions for other businesses.

Accepted Answer

A) True 
 B)False

Question 2

Profits of the business that have not been paid to shareholders are called:

Accepted Answer

A)  dividends. 
B)  losses. 
C)  retained earnings. 
D)  discounts. 
A)  dividends. 
B)  losses. 
C)  retained earnings. 
D)  discounts.

Question 3

A financial document that shows the income, expenses, and profit or loss of an organization for a given period of time is a(n) :

Accepted Answer

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

Question 4

Tax rates for Social Security apply to all earnings a person has each year.

Accepted Answer

A) True 
 B)False

Question 5

The profit or loss amount from the income statement is also shown on the organization's cash flow statement.

Accepted Answer

A) True 
 B)False

Question 6

Federal income taxes are sometimes called FICA taxes because they are collected under the authority of the Federal Insurance Contributions Act (FICA) .

Accepted Answer

A) True 
 B)False

Question 7

A health savings plan:

Accepted Answer

A)  may be an elected payroll deduction for an employee. 
B)  allows users to save money that is deducted after taxes to pay for future medical expenses. 
C)  provides benefits that are not taxed as long as the money is used for medical expenses. 
D)  Both A and C 
A)  may be an elected payroll deduction for an employee. 
B)  allows users to save money that is deducted after taxes to pay for future medical expenses. 
C)  provides benefits that are not taxed as long as the money is used for medical expenses. 
D)  Both A and C

Question 8

A voucher is a bill from a vendor requesting payment for the items ordered.

Accepted Answer

A) True 
 B)False

Question 9

The federal government's health insurance program for people age 65 or older is called:

Accepted Answer

A)  Social Security. 
B)  FICA. 
C)  Medicare. 
D)  The Affordable Care Act Insurance Program. 
A)  Social Security. 
B)  FICA. 
C)  Medicare. 
D)  The Affordable Care Act Insurance Program.

Question 10

When completing a bank reconciliation:

Accepted Answer

A)  enter the check register balance on the current date. 
B)  add bank fees to the check register amount. 
C)  subtract outstanding deposits from the bank statement balance. 
D)  Both B and C 
A)  enter the check register balance on the current date. 
B)  add bank fees to the check register amount. 
C)  subtract outstanding deposits from the bank statement balance. 
D)  Both B and C

Question 11

A credit card reader can be used with many smartphones and tablets, making it possible to accept credit card payments wherever there is cell phone service.

Accepted Answer

A) True 
 B)False

A payroll service is a company that handles payments to employees, taxes, and related functions for other businesses.

Profits of the business that have not been paid to shareholders are called:

A financial document that shows the income, expenses, and profit or loss of an organization for a given period of time is a(n) :

Tax rates for Social Security apply to all earnings a person has each year.

The profit or loss amount from the income statement is also shown on the organization's cash flow statement.

Federal income taxes are sometimes called FICA taxes because they are collected under the authority of the Federal Insurance Contributions Act (FICA) .

A health savings plan:

A voucher is a bill from a vendor requesting payment for the items ordered.

The federal government's health insurance program for people age 65 or older is called:

When completing a bank reconciliation:

A credit card reader can be used with many smartphones and tablets, making it possible to accept credit card payments wherever there is cell phone service.

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

A payroll service is a company that handles payments to employees, taxes, and related functions for other businesses.

Profits of the business that have not been paid to shareholders are called:

A financial document that shows the income, expenses, and profit or loss of an organization for a given period of time is a(n) :

Tax rates for Social Security apply to all earnings a person has each year.

The profit or loss amount from the income statement is also shown on the organization's cash flow statement.

Federal income taxes are sometimes called FICA taxes because they are collected under the authority of the Federal Insurance Contributions Act (FICA) .

A health savings plan:

A voucher is a bill from a vendor requesting payment for the items ordered.

The federal government's health insurance program for people age 65 or older is called:

When completing a bank reconciliation:

A credit card reader can be used with many smartphones and tablets, making it possible to accept credit card payments wherever there is cell phone service.

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