WorksheetsAccounting I Review
Total questions: 24
Worksheet time: 1hrs 6mins
What are the four main financial statements used in accounting?
Income Statement, Balance Sheet, Statement of Cash Flows, and Statement of Stockholders' Equity
Earnings Statement, Asset Sheet, Statement of Investment Flows, and Statement of Partners' Equity
Expense Statement, Credit Sheet, Statement of Revenue Flows, and Statement of Owner's Equity
Profit Statement, Liability Sheet, Statement of Debt Flows, and Statement of Shareholders' Equity
Explain the purpose of the income statement and the balance sheet in financial reporting.
To track employee attendance and performance
To show the company's profitability and financial position
To determine the company's marketing strategy
To calculate the company's tax liabilities
What are the steps involved in the accounting cycle?
Explain the difference between accrual basis accounting and cash basis accounting.
Cash basis accounting records revenues and expenses when they are earned or incurred, regardless of when the cash is actually received or paid.
Accrual basis accounting records revenues and expenses only when the cash is actually received or paid.
Accrual basis accounting records revenues and expenses when they are earned or incurred, regardless of when the cash is actually received or paid. Cash basis accounting records revenues and expenses when the cash is actually received or paid.
What is bank reconciliation and why is it important in accounting?
Bank reconciliation is not important in accounting because it only adds extra work for accountants.
Bank reconciliation is important in accounting because it helps to identify discrepancies between the company's records and the employee payroll.
Bank reconciliation is important in accounting because it helps to identify discrepancies between the company's records and the inventory levels.
Bank reconciliation is important in accounting because it helps to identify any discrepancies between the company's records and the bank statement, such as errors, fraud, or missing transactions.
Explain the process of bank reconciliation and its impact on the company's financial records.
Bank reconciliation is a time-consuming process with no real benefit
Bank reconciliation is only necessary for small businesses
Bank reconciliation helps ensure the accuracy of the company's financial records and can uncover any errors or fraudulent activity.
Bank reconciliation has no impact on the company's financial records
How are revenue and expenses recorded in the accounting records?
Revenue as a credit and expenses as a debit
Revenue as a cash transaction and expenses as a non-cash transaction
Revenue as an asset and expenses as a liability
Revenue as a debit and expenses as a credit
What is the purpose of the general journal in the accounting process?
To organize employee schedules
To calculate the total profit for the year
To track inventory levels
To record all financial transactions in chronological order.
Which of the following taxes does not have a taxable base per calendar year?
Federal Unemployment Tax
State Unemployment Tax
Social Security Tax
Medicare Tax
When health insurance premiums are submitted to the health insurance carrier, the journal entry would include a _________.
debit to Health Insurance Premiums Payable and a credit to Cash.
debit to cash and a credit to Health Insurance Premiums Payable.
debit to Health Insurance Expense and a credit to cash.
debit to Health Insurance Premiums Payable and a credit to Health Insurance Expense.
Wages, hours worked, and regulations for minors in the workplace are set by?
Occupational Safety and Health Administration (OSHA)
Fair Labor Standards Act (FLSA)
Fair Wage and Tax Law (FWTL)
Family Medical Leave Act (FMLA)
Juan is married and claims 2 allowances. His total earnings for his last pay period are $699.00. What amount will be deducted from his pay for federal taxes. Use the table in the image.
$0
$1
$4
$19
Morgan is married and claims 1 allowance. Her total earnings for her last pay period are $700.00. What amount will be deducted from her pay for Social Security taxes.
Social Security tax rate = 6.2%
$43.40
$4.34
$42.00
$22.00
DeAndre is married and is a teacher. His gross pay biweekly is $1284.67. He claims himself and 3 other withholding allowances. How much federal withholding is withheld from his biweekly paycheck?
$51
$36
$19
$70
Pierre works as the head chef at Chez Bistro. He is married and claims 2 withholding allowances. Pierre gets paid $1708.33 semi-monthly. His withholding for federal is $91.00, for Social Security is 105.92 and for Medicare is 24.77. What is Pierre's net pay?
$1486.64
$1499.64
$1489.64
$1479.63
Dash works as a corporate lawyer and makes $150,000 per year. How much will he have withheld for Social Security this year?
$9300
$8239.80
$10414.80
Cannot be calculated, do not have enough information.
When completing your Comparative Income Statement, your Wages Expense in Year 1 is $55,000 and in Year 2 it is $53,000. What is the percentage increase or decrease from Year 1 to Year 2?
decrease of 3.64%
increase of 3.64%
increase of 3.77%
increase of 10.03%
On a common-size income statement, each dollar amount is expressed as a percentage of:
net income
sales
total expenses
none of the above
What is the purpose of the general journal in the accounting process?
