Posted: March 10th, 2021

1) which of the following accounts ordinarily appears in the

1) Which of the following accounts ordinarily appears in the post-closing trial balance? 

A) Accumulated Depreciation 

B) Supplies Expense 

C) Fees Revenue 

D) Salaries Expense

 

2) The Income Summary account shows debits of $20,000 and credits of  $18,000.  This is a result of a: 

A) net loss of $38,000. 

B) net income of $2,000. 

C) net income of $38,000. 

D) net loss of $2,000.   

 

3) After closing the revenue, expense, and withdrawal accounts, the capital increased by $2,000.  Which of the following situations could have occured? 

A) The owner made withdrawals. 

B) The company had a net income of $5,000. 

C) The owner invested an additional amount. 

D) All of these answers are correct. 

 

4) When the expenses are closed: 

A) Owner’s Capital will be debited. 

B) Income Summary will be credited. 

C) Income Summary will be debited. 

D) None of these are correct. 

 

5) Closed the Fees Earned account. 

A) Owner’s capital would decrease. 

B) Owner’s capital would remain the same. 

C) Owner’s capital would increase. 

D) None of these are correct. Final 

 

6) A restrictive endorsement on a check: 

A) can be further endorsed by someone else. 

B) permits the bank to use its best judgment. 

C) is the safest endorsement for businesses. 

D) None of these answers are correct. 

 

7) Key points in working with a checkbook should include: 

A) the stub will be used in recording transactions and future reference. 

B) the number of the check is preprinted on the check. 

C) the amount written in words should start on the far left. 

D) all of the above. 

 

8) A check for $78 is incorrectly recorded on the checkbook stub as $87. The $9 error should be shown on the bank reconciliation as: 

A) deducted from the balance per bank statement. 

B) added to the balance per bank statement. 

C) added to the balance per books. 

D) deducted from the balance per books.

 

9) Which of the following bank reconciliation items would not be reflected in a journal entry? 

A) Outstanding checks 

B) NSF customer check 

C) Collection of a note by the bank 

D) Bank service charges 

 

10) The debit recorded in the journal to establish the petty cash fund is to: 

A) Petty Cash. 

B) Accounts Receivable. 

C) Cash. 

D) Accounts Payable. 

 

11) A $100 petty cash fund has cash of $14 and valid receipts for $82. The entry to replenish the fund would include a: 

A) credit to Cash for $82. 

B) debit to Cash Short/Over for $4.   

C) debit to Cash for $82. 

D) debit to Petty Cash for $86

 

12) Robbins Supply journal entry to establish a $100 petty cash fund for the office would include a: 

A) credit to Petty Cash for $100. 

B) credit to Cash for $100. 

C) debit to Office Expense for $100. 

D) debit to Cash for $100. 

 

13) The entry to replenish the petty cash fund debited Supplies instead of Postage Expense. This would cause: 

A) expenses to be overstated. 

B) revenues to be understated. 

C) expenses to be understated. 

D) revenues to be overstated. 

 

14) An error recording a $72 check as $27 would be included on the bank reconciliation as a(n): 

A) subtraction from the balance per bank. 

B) subtraction from the balance per books. 

C) addition to the balance per books. 

D) addition to the balance per bank.. 

 

15) The amount of federal income tax withheld is computed using the: 

A) FICA tax tables. 

B) net earnings and Form W-4. 

C) employee’s income, number of allowances, and marital status. 

D) W-2 charts. 

 

16) A form completed by employees showing the number of allowances is: 

A) Form W-4. 

B) Form W-2. 

C) Form 941. 

D) Form 8109. 

 

17) The amount of FICA-OASDI and FICA-Medicare taxes an employer must pay is: 

A) equal to the amount withheld from the employee. 

B) not dependent on the amount withheld from the employee. 

C) greater than the amount withheld from the employee. 

D) less than the amount withheld from the employee. Final Examination 

 

18) The payroll register includes sections for recording: 

A) assets, liabilities, equity, revenues, and expenses. 

B) gross pay, deductions, and net pay. 

C) accrued expenses, unearned revenues, and net pay. 

D) trade accounts receivable and short-term note receivables. 

 

19) Net pay is the same as: 

A) before taxes pay. 

B) gross pay. 

C) pay before deductions. 

D) take-home pay. 

 

20) Both employees and employers pay which of the following taxes? 

A) FICA taxes (Social Security and Medicare) 

B) Excise tax 

C) Federal income tax 

D) FUTA tax 

 

21) When calculating the payroll the clerk forgot about the tax ceilings. 

A) SUTA could be overstated. 

B) FICA-OASDI could be overstated. 

C) FUTA could be overstated. 

D) All of these could be correct. 

 

22) The accounting department forgot to estimate the worker’s compensation, this will cause: 

A) the net income to be understated. 

B) the liabilities to be overstated. 

C) the assets to be overstated. 

D) the net income to be overstated. 

 

23) Posting the payroll entry comes from the: 

A) employee’s earnings record. 

B) journal. 

C) payroll register. 

D) None of these answers are correct. 

 

24) The entry to record the employer’s payroll taxes would include: 

A) a credit to State and Federal Unemployment Tax Payable. 

B) a credit to FICA-Social Security Taxes Payable and FICA-Medicare Taxes Payable. 

C) a debit to Payroll Taxes Expense. 

D) All of these answers are correct. 

 

25) The entry to record the payroll tax expense would include: 

A) a credit to Cash. 

B) a credit to FICA (Social Security and Medicare) Taxes Payable. 

C) a credit to Federal Income Taxes Payable. 

D) a credit to Wages Payable. 

 

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