Only the federal government can exempt from sales taxes some types of merchandise or sales to certain types of customers.

Regardless of when payment is received, the revenue should be recorded when a sale is made, not on the date cash is received.

The amount of sales tax collected is a liability of a business until paid to the government.

The total of each general amount column of a cash receipts journal is posted to the corresponding general ledger account.

The balance of Accounts Receivable should equal the total of the schedule of accounts receivable.

Marris Company records a $1,000.00 sale on account on May 23. On June 6, the customer pays the account. The sale should be recorded in the

The amount of sales tax on a sale is calculated as the price of goods

A business should post sales on account transactions to the accounts receivable subsidiary ledger frequently to

Net income increases a corporation’s total stockholders’ equity.

A corporation’s Dividends account is a temporary account.

An entry in the general journal that affects Accounts Payable also affects a vendor’s account in the accounts payable ledger.

A corporation can decide if and when to declare a dividend.

A credit memorandum prepared by a customer results in the customer recording a debit to the vendor account.

An entry recorded in a general journal will increase the account debited and decrease the account credited.

A general journal entry posted to Accounts Payable will also be posted to an accounts payable account.

Dividends can be distributed to stockholders only by formal action of a corporation’s board of directors.

In a computerized accounting system, transactions recorded on a general journal are posted at the end of the month.

A completed general journal page should always be reviewed to be sure that all postings have been made.

A credit memorandum issued by a vendor results in the vendor recording a credit to the customer’s account.

Entries in the general journal only affect account balances in general ledger accounts.

Most corporations pay dividends by writing checks to stockholders on the day after the dividends are declared.

Transactions that cannot be recorded in a special journal are recorded in a general journal.

The purchase of supplies on account results in a

A customer notifies the vendor that purchased merchandise is damaged and cannot be sold at the normal price. Any credit granted to the customer would be called a

At the end of the fiscal period, the balance of Dividends is closed to

The amount of a dividend is normally calculated as

Dividends is a temporary account of a corporation and is similar to which proprietorship account?

Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government.

The first task in preparing a payroll is to determine the number of days worked by each employee.

Payroll taxes withheld represent a liability for an employer until payment is made.

When an employee’s earnings exceed the tax base, no more social security tax is deducted.

The amount of income tax withheld from each employee’s total earnings is determined solely from the number of withholding allowances.

The investment income in a Roth IRA is not subject to federal income taxes when withdrawn.

A business is required by law to withhold certain payroll taxes from employee salaries.

A single person will have more income tax withheld than a married employee.

Social security tax is paid by both employees and employers.

The larger the number of withholding allowances claimed, the larger the amount of income tax withheld.

Employee regular earnings are calculated as

A business form used to record details affecting payments made to an employee is a(n)

The Accumulated Earnings column of the employee earnings record

Each employee name is listed in a payroll register along with

The total earnings paid to an employee after payroll taxes and other deductions is recorded in the payroll register’s

Individual payroll checks are usually written on a(n)

Federal income tax is withheld from employee earnings

The withholding allowances of an employee affect

The amount on the employee earnings record used to determine if certain payroll taxes apply to an employee’s earnings is

In each pay period, the payroll information for each employee is recorded on his or her employee earnings record.

The payroll register provides all the payroll information needed to prepare a payroll.

A business deposits the total of gross wages in a separate payroll checking account.

Employer payroll taxes are business expenses.

The employer social security tax rate is different than the employee social security tax rate.

Federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation.

The transaction to record employer payroll taxes expense is journalized at the end of the quarter.

Each employer is required by law to periodically report the payroll taxes withheld from employee salaries.

Form W-2 reports an employee’s annual earnings and the withholdings for federal income, social security, and Medicare taxes.

In the journal entry for a payroll, the amount debited to Salary Expense is the total of the Net Pay column of the payroll register.

The tax base for Medicare tax is the same as the tax base for social security tax.

Some employers must deposit payments for withheld employees’ federal income tax and social security and Medicare taxes on the next banking day.

Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee with a quarterly statement.

Until the amounts withheld from employee salaries are paid by the employer, they are recorded as

Each employer must file a _________ federal tax return showing the federal income tax, social security tax, and Medicare tax due the government.

Employers are required to furnish each employee with an annual statement of earnings and withholdings before

The source document for paying employee income tax and social security and Medicare tax is )

The source document for paying state unemployment tax is

A state tax used to pay benefits to unemployed workers is

A note provides a business with legal evidence of a debt in the event it becomes necessary to go to court to collect.

The account Allowance for Uncollectible Accounts has a natural credit balance.

The account Allowance for Uncollectible Accounts is reported on the income statement.

Interest rates are stated as a percentage of the principal.