Accountic Basic NOCTI Sample Questions (Set 2)

A direct deposit made to an employee's checking or savings account is also known as a/an

• ATM
• FICA
• EIN
• EFT (electronic funds transfer)

Checks that are paid by the bank and then removed from the depositor's account are called ________ checks.

• cashier's
• cancelled checks
• refund
• outstanding

A company had $3,000 in credit card sales during the day. The company charged a 3 percent discount rate on credit card deposits. The entry to record the credit card sales is

• debit cash $2,910; debit credit card expense $90; credit sales $3,000
• debit Cash $2,910; and credit Sales $2,910
• debit Cash $3,000; and credit Sales $2,910; credit Credit Card Expense $90
• debit Cash $3,000; and credit Sales $3,000

A check is a/an

• a certificate documenting the shareholder's ownership in the corporation
• document signed by a borrower promissing to repay a loan
• official document prepared by the carrier duly accepting the goods for shipment
• signed statement ordering a bank to pay cash from funds deposited in that bank

An endorsed check must have an authorized ________ on the back of the check.

• embossment
• thumb print
• signature
• bank stamp

A bank statement reconciliation is

• a statement that specifies the amount and account the funds are being deposited into.
• a summary of all financial transactions occuring over a period of time on an account
• a summary of the financial balances of a company
• an account audit used to bring information on a bank statement and a checkbook into agreement

A purchase of a computer with cash

• is a shift in assets
• increases a liability
• decreases an asset
• increases an asset

During one accounting period, a corporation's beginning inventory was $17,000 and they purchased $85,000 of merchandise. The cost of the goods sold for that period was $94,000 and sales were $110,000. What is the merchandise inventory amount on the financial statement?

• 8,000

• 16,000

• 86,000

• 110,000

The two accounts used to adjust the merchandise inventory are Income Summary and

• Merchandise Inventory
• Beginning Merchandise Inventory
• Ending Merchandise Inventory
• Total Merchandise Inventory

Sales tax is applied at the rate of 6.5 percent. The entry record, cash sales of merchandise for $100, requires a credit to the Sales Tax Payable account for

• 0.65
• 6.5
• 35
• 650