Unit 7: Accounting (Part 4)

When accounting is processed by hand it is called

• In-house system

• Manual accounting system

• Financial Reporting system

• Open Accounting

The purpose of the income statement is to report

• all assets, liabilities, and owner's equity

• all the accounts used in journalizing a business's transactions

• balances in the capital accounts in order to determine the net income or loss

• the net income or loss for a fiscal period

The purpose of the Income Summary account is

• to close the temporary accounts

• to accumulate and summarize the revenue and expenses for the period

• to transfer the balance of the Income Summary account to the capital account

• to report the net income or net loss for the accounting period

A certain employee is paid every week on an hourly pay basis. She worked 38.5 hours for the week, and her hourly rate of pay is $12.00. The federal and state taxes combined equal $114.02. If there are no additional deductions, what is the employee's net pay for the week?

• 462.00

• 348.00

• 576.02

• 347.98

Which method of paying employees involves a fixed amount paid for each period?

• piece rate

• commisson

• salary

• hourly wage

Which form is considered the withholding allowances certification?

• W-2

• W-4

• 1040

• 1099

Julie earns $18.50 per hour. She paid overtime (time and one-half) for hours worked on Sunday. The first Sunday in June she worked 6 hours, giving her 46 hours for the week. What were her gross wages if total taxes were 163.17.

• 851.00

• 1,069.67

• 743.33

• 906.50

Which is an example of deductions?

• overtime

• total earning

• medicare

• regular earning

The first step in balancing a checkbook is

• subtracting fees on the bank statement from the checkbook balance

• comparing checks in the check record with those on the statement

• adding interest earned to the checkbook balance

• adding recent deposits to the bank statement balance

If a check is cancelled, it means that it

• was written in error and has been voided

• has been paid to the payee

• has not yet been posted by the bank

• was returned by the bank for non sufficient funds