Accounting Unit 3 Review

A check involves three parties. The person who orders the bank to pay a certain amount of money is called the

• a. drawer.

• b. drawee.

• c. payee.

• d. endorser.

The process of bringing the book and the bank balance into agreement is called

• a. reconciling the bank statement.

• b. proving the cash.

• c. preparing a statement of payment.

• d. preparing a statement of disbursements.

On a bank reconciliation, deposits that were not entered by the bank before the bank statement was prepared are known as

• a. NSF deposits.

• b. restrictive deposits.

• c. deposits in transit.

• d. unrecorded deposits.

To reconcile the bank statement, which of the following amounts would be added to the bank statement balance?

• a. service charge

• b. outstanding checks

• c. deposits in transit

• d. amounts collected by the bank for the depositor's account

Sandra Wilson is paid 1.5 times the regular hourly rate for all hours worked over 40 hours per week & double time for work on Sunday. Wilson's regular rate is $12 per hour. During the week ended July 3, she worked 9 hours each day from Monday through Friday, 6 hours on Saturday, & 4 hours on Sunday. Wilson's overtime earnings for the week ended July 3 are

• $180

• $294

• $360

• $430

Any person who agrees to perform a service for a fee and is not subject to the control of those for whom the service is performed is called a(n)

• a. manager.

• b. employee.

• c. independent contractor.

• d. executive.

An amount of an employee's gross pay which is exempt from federal income tax withholding is a(n)

• a. additional withholding allowance.

• b. withholding allowance.

• c. zero bracket amount.

• d. special withholding allowance.

Each employee is required to furnish the employer with which of the following forms?

• a. W-2

• b. 941

• c. W-4

• d. 1040

Denise Cruz receives a regular salary of $900 a month and is entitled to overtime pay at the rate of one and one-half times the regular hourly rate for any time worked in excess of 40 hours per week. Cruz's overtime rate of pay is

• $5.63

• $7.79

• $8.44

• $22.50

When a single-check for payroll is prepared and deposited into a special payroll bank account, which of the following entries is made to record the deposit?

• a. debit Wages and Salaries Expense; credit Cash

• b. debit Payroll Cash; credit Cash

• c. debit Cash; credit Payroll Expense

• d. debit Cash; credit Wages and Salaries Expense