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WorksheetsAccounting Fundamentals
Total questions: 85
Worksheet time: 43mins
Which of the following terms describes payments correlated with hours worked by an employee?
Wages
Salary
Time card
Employee earnings record
Which of the following terms describes a regular, fixed amount paid to an employee for work performed?
Wages
Salary
Time card
Employee earnings record
Which of the following terms describes a record which contains details of an employee's payroll during a calendar year?
Wages
Salary
Time card
Employee earnings record
Which of the following is NOT a tax paid by both the employee and employer?
FICA tax
State unemployment tax
State income tax
Federal income tax
Which of the following terms describes a tax form which helps the employer determine the correct amount of tax to withhold from paychecks?
W-2
W-4
W-9
I-9
Kate has a pay rate of $15 per hour. She worked seven hours each days during the last 10 day pay period. What is Kate's gross wage?
$105
$150
$1,000
$1,050
Jenny's Jewels sold $750,000 worth of jewelry last year and the cost of goods sold was $420,000. How much were the gross earnings of Jenny's Jewels last year?
$750,000
$420,000
$330,000
$1,170,000
Janet makes $48,000 per year. The Social Security tax is 6.2% of her wages. Janet's company pays her one time each money. How much money is withheld from Janet's paycheck each month?
$2,976
$496
$248
$124
Christina makes $55,000 gross pay. When all of the withholdings and deductions are added together, they total $12,500 for the year. What is Christina's yearly net pay?
$67,500
$42,500
$42,000
$33,000
Henry made $42,000 in wages last year. If the Medicare tax is 1.45%, how much money was paid in total for the Medicare tax from Henry and Henry's employer last year?
$609
$1,218
$5,880
$6,090
Marcus received store credit after sending back a jacket he purchased from the Coat Factory. Which of the following types of of transactions is this?
Sales return
Sales discount
Sales allowance
Deduction allowance
Which of the following accounts is credited when a company immediately receives money for providing a service?
Cash
Service expense
Accounts receivable
Service revenue
Julia returned a $23 wallet she purchased with cash from a boutique. Which of the following is the correct journal entry?
Debit: Sales ($23)
Credit: Returns ($23)
Debit: Returns ($23)
Credit: Sales ($23)
Debit: Cash ($23)
Credit: Sales Returns and Allowances ($23)
Debit: Sales Returns and Allowances ($23)
Credit: Cash ($23)
In exchange for early payment, Bike Town reduced Angela's bill by $10. Which of the following types of transactions is this?
Sales return
Sales discount
Sales allowance
Deduction allowance
Which of the following refers to a business reducing the selling price of an item, usually due to an issue with the order?
Sales return
Sales discount
Sales allowance
Deduction allowance
Carolina Candies paid $200 toward a $376 purchase made on account. Which account will be debited in the journal entry?
Accounts receivable
Accounts payable
Cash
Inventory
Carolina Candies paid $200 toward a $376 purchase made on account. Which account will be credited in the journal entry?
Accounts receivable
Accounts payable
Cash
Inventory
Mia purchased $167 worth of old picture frames (on account) to be sold to customers at her photography studio. Which account would be debited for this transaction? (perpetual system)
Accounts receivable
Accounts payable
Cash
Inventory
Mia purchased $167 worth of old picture frames (on account) to be sold to customers at her photography studio. Which account would be credited for this transaction? (perpetual system)
Accounts receivable
Accounts payable
Cash
Inventory
Which of the following types of journals records payments which decrease cash?
Sales journal
Purchases journal
Cash receipts journal
Cash payments journal
Inventory is recorded as which of the following on the company's balance sheet?
Asset
Expense
Liability
Cost
Which of the following principles requires the amounts recorded in the accounts and on the financial statements to be the actual cost of an item rather than the current value of the item?
Asset principle
Inventory principle
Cost principle
Accuracy principle
Which of the following is a subsidiary ledger for specific inventory?
Liability record
Expense report
Stock record
Stock entry
A company only updates their inventory at the end of the year and associates the oldest costs first with the costs of goods sold. Which of the following best describes this scenario?
Periodic FIFO
Periodic LIFO
Periodic Average
Perpetual FIFO
Using the information in the table, which of the following would be the cost of goods sold in a FIFO cost flow assumption if one ring was sold?
$20
$21.50
$22
$23
Using the information in the table, which of the following would be the cost of goods sold in a LIFO cost flow assumption if one ring was sold?
$20
$21.50
$22
$23
Using the information in the table, which of the following would be the cost of goods sold in an average cost flow assumption if one ring was sold?
$20
$21.50
$22
$23
Which of the following is an inventory method which requires a business to identify each good with the good's cost of goods sold?
LIFO
FIFO
Average
Specific Identification
Which of the following accounts is credited when production labor costs are recorded?
Overhead cost pool
Wages expense
Raw materials inventory
Merchandise inventory
When a good is completed it is moved from work-in-progress inventory to which of the following?
Raw goods inventory
Finished goods inventory
Overhead inventory
Overhead cost pool
The bank listed a $400 deposited as $4,000. Which of the following is how this error would be listed on a bank reconciliation?
Bank service charge
Adjusted bank balance
Bank error which overstated the balance
Bank error which understated the balance
Which of the following refers to money being exchanged between businesses and customers electronically?
Automatic fund deposite
Electronic cash withdrawal
Automatic cash withdrawal
Electronic funds transfer
A petty cash fund was initially established with $200. A gas purchase of $25, a paper purchase of $32 and a miscellaneous expense of $15 were made. What would be the journal entry to replenish the fund?
Debit: Cash ($72);
Credit: Petty Cash ($72)
Debit: Petty Cash ($200); Credit: Cash ($200)
Debit: Fuel Expense ($25), Supplies ($32), Misc. Expenses ($15);
Credit: Cash ($72)
Debit: Cash ($72);
Credit: Fuel Expense ($25), Supplies ($32), Misc. Expenses ($15)
Which of the following refers to the process of verifying the bank statement amounts match company cash amounts?
Bank adjustment
Bank reconciliation
Statement revision
Company cash reconciliation
Which of the following accounts would be credited to set up a petty cash fund?
Cash
Petty Cash
Withdrawals
Miscellaneous Expense
Which of the following is how interest income on deposited funds is handled on a bank reconciliation?
Added to the balance per bank
Added to the balance per book
Subtracted from the balance per bank
Subtracted from the balance per book
Which of the following is how deposits in transit are handled on a bank reconciliation?
Added to the balance per bank
Added to the balance per book
Subtracted from the balance per bank
Subtracted from the balance per book
Which of the following refers to transactions which require two people in order to be completed?
Dual control
Dual process
Dual comparison
Employee transactions
Which of the following refers to taking money out of a bank?
Controlling
Assisting
Depositing
Withdrawing
A deposite was made on November 29 and the bank statement was printed on November 28. How would the deposite be listed on the bank reconciliation?
Deposits in transit
Outstanding checks
Bank service charges
Bank error which understated the balance
Which of the following terms is a list or report of products and services provided by a company or vendor to a customer?
Invoice
Customer file
Control account
Subsidiary ledger
Which of the following would NOT be found in a customer file?
Balance
Credit limit
Tax bracket
Name and address
Which of the following transactions would take place when a customer pays for a good or service at the time it is received?
Sales account is credited; cash account is debited
Cash account is credited; sales account is debited
Cash account is credited; bad debts account is debited
Sales return account is credit; bad debts account is debited
Which of the following represents the amount of money customers owe to an individual or company due to purchasing goods or services?
General ledger
Operating activities
Accounts receivable
Direct write-off approach
Which of the following accounts contains the grand totals of individual subsidiary journal transactions?
Sales account
Control account
Accounts receivable
Accounts payable
Which of the following terms is used for a document which confirms the sale of goods and services to the customer?
Sales order
Sales invoice
Customer file
Control account
Which of the following is a bill to the customer after a sale has been ordered?
Sales order
Sales invoice
Customer file
Control account
Which of the following transactions would be recorded in the journal when a customer returns a good on credit?
Sales account is debited; Cash account is credited
Accounts Receivable account is debited; Cash account is credited
Sales Returns and Allowances account is debited; Accounts Receivable account is credited
Accounts Receivable account is debited; Sales Returns and Allowances account is credited
Which of the following would NOT be found on a sales order?
Unit price
Company name
Invoice number
Buyer's Social Security number
Which of the following transactions would take place in the journal when a customer buys a good or service on credit?
Sales account is debited; cash account is credited
Accounts receivable account is debited; cash account is credited
Accounts receivable account is debited; sales return account is credited
Accounts receivable is debited; sales account is credited
Which of the following is another name for bad debt?
Cash accounts
Sales accounts
Allowance accounts
Uncollectible accounts
Which of the following is a general ledger account which is intended to have its balance be the opposite of the normal balance for the account classification?
Contra account
Sales account
Anti account
Payable account
Which of the following transactions would take place in the journal when a credit customer sends in a payment (full or partial)?
Sales account is debited; cash account is credit
Cash account is credited; accounts receivable is debited
Cash account is debited; accounts receivable account is credited
Sales return account is credited; accounts receivable is debited
Which of the following is also known as the direct charge-off method?
Contra account balance
Allowance approach
Direct write-off approach
Allowance for doubtful accounts
Which of the following transactions would take place in the journal when using the direct write-off approach for an uncollectible account?
Sales account is debited; the cash account is credited
Sales return account is debited; cash account is credited
Accounts receivable is debited; sales return account is credited
Bad debts expense account is debited; accounts receivable is credited
Which of the following transactions would take place in the general journal when a customer pays for a good or service which has been invoiced?
Cash account is debited; sales account is credited
Bad debts account is debited; sales return account is credited
Cash account is debited; accounts receivable account is credited
Accounts receivable account is debited; cash account is credited
Which of the following terms defines when a customer buys a good or service on credit and agrees to pay at a later date?
Subsidiary ledger
Operating activities
Accounts receivable
Direct write-off approach
Which of the following accounts defines the general ledger account which contains the grand totals of individual subsidiary journal transactions?
Sales account
Control account
Allowance account
Accounts receivable account
Which of the following is a term used when a credit sale is returned by the customer?
Credit limit
Sales Allowance
Sales Return
Invoice
Which of the following transactions would take place in the journal when a customer buys a good or service on credit?
Sales account is debited; cash account is credited
Accounts receivable account is debited; cash account is credited
Accounts receivable accounts is debited; sales return account is credited
Accounts receivable account is debited; sales account is credited
Which of the following terms describes a financial statement which shows how balance sheet and income statement changes affect the flow of cash?
Income statement
Invoice statement
Balance statement
Cash flow statement
Which of the following transactions would take place when an account becomes uncollectible and is written off under the allowance method?
Bad debts account is debited; accounts receivable is credited
Accounts receivable account is debited; sales return account is credited
Accounts receivable account is debited; allowance for doubtful accounts is credited
Allowance of doubtful accounts is debited; accounts receivable is credited
Which of the following transactions would take place in the journal when using the direct write-off approach for an uncollectible account?
Sales account is debited; cash account is credited
Sales return account is debited; cash account is credited
Accounts receivable account is debited; sales return account is credited
Bad debts expense account is debited; accounts receivable is credited
Which of the following is a report which lists all amounts owed by customers?
Schedule of accounts payable
Schedule of accounts receivable
Schedule of allowances
Schedule of bad debts
Which of the following is a balance sheet account which reduces the reported amount of accounts receivable?
Allowance for doubtful accounts
Allowance for tax credits
Schedule of bad debts
Schedule of accounts receivable
Bargain Boots received an invoice after purchasing $1,000 worth of boots from a vendor on credit. Which of the following is the correct journal entry?
Debit: Cash ($1,000)
Credit: Inventory ($1,000)
Debit: Inventory ($1,000)
Credit: Cash ($1,000)
Debit: Inventory ($1,000)
Credit: Accounts Payable ($1,000)
Debit: Accounts Payable ($1,000)
Credit: Inventory ($1,000)
Maximum Fitness sent their monthly payment of $100 to a vendor for purchasing a $1,000 treadmill on account. Which of the following is the correct journal entry?
Debit: Accounts Receivable ($900)
Credit: Cash ($900)
Debit: Cash ($100)
Credit: Accounts Receivable ($100)
Debit: Inventory ($1,000)
Credit: Cash ($1,000)
Debit: Accounts Payable ($100)
Credit: Cash ($100)
Which of the following transactions increase assets?
Purchasing land to store inventory
Paying rent on time every month
Paying cash to reduce an invoice on account
Purchasing fuel for a company car
Which of the following statements is true about the accounts payable subsidiary ledger?
All vendors owed money are grouped into one account
General ledger amounts are transferred to the accounts payable subsidiary ledger
Companies have separate accounts for each vendor owed money
It provides less detailed information about accounts payable transactions
Which of the following is a method to ensure accounts payable entries are properly recorded?
Accounts payable credit ledger
Schedule of accounts payable
Accounts payable debit record
Schedule of payable entries
Which of the following is the correct journal entry if Bargain Boots received their monthly $500 rent bill, which will be paid later?
Debit: Accounts Payable ($500)
Credit: Rent Expense ($500)
Debit: Cash ($500)
Credit: Rent Expense ($500)
Debit: Rent Expense ($500)
Credit: Accounts Payable ($500)
Debit: Rent Expense ($500)
Credit: Cash ($500)
To which of the following accounts is the accounts payable subsidiary ledger total transferred?
General ledger
Accounts receivable ledger
Vendor ledger
Liabilities ledger
Which of the following is a document which authorizes a buyer to receive goods/services from a seller?
Receiving report
Purchase order
Authorization report
Authorization invoice
Which of the following is used to indicate the goods listed on a purchase order were actually received?
Receiving report
Purchase order
Authorization report
Authorization invoice
Which of the following is the first step in the process of ordering from a vendor?
The company sends the vendor a receiving report
A purchase order is sent to the vendor
The vendor sends the company a vendor invoice
An invoice is sent to the accounts payable department
Which of the following is any cost which cannot be capitalized into a prepaid expense, inventory, or fixed asset?
Period cost
Product cost
Paradox cost
Premium cost
Which of the following is a sunk cost?
Money spent on materials currently in production
Money spent on an unfinished storage building
Money spent paying employees
Manufacturing overhead
Red Manufacturing produces a product at $25 per unit price, sells 1,000 units and accrues $10,500 in variable cost. Which of the following is the contribution margin per unit?
$11.50
$12.50
$13.50
$14.50
Which of the following cost accounting systems assigns manufacturing costs to a product or batches of products and is ideal for companies which produce unique products?
Activity-based costing
Project costing
Job-order costing
Process costing
Jake's Jump Ropes has a total indirect cost of $500,000 and incurs a direct cost of $100,000. Which of the following is the overhead rate ratio?
5:1
1:5
2:1
1:2
Which of the following is the cost of goods sold for Stan's Floral if they began the month with $500 inventory, purchased $1,000 of inventory during the month and ended the month with $200 of inventory?
$1,200
$1,300
$1,400
$1,500
Which of the following is calculated by subtracting the actual amount from the budgeted amount?
Linear regression
Cost-profit value
Variance analysis
Cost
Calculate the purchase price variance for the following scenario. Otto's Auto Repair purchased a car for $10 a part, if they purchased 1,000 parts during the year. Otto's only purchased 900 parts and they were charged $12 per part.
$1,200
$1,400
$1,600
$1,800
Calculate the selling price variance for the following scenario. Karen's Office Supply sells a calculator for $50. A new business began selling the same calculator which forces Karen's to sell the calculator for $44 a piece. Karen's sold 4,000 calculators during the accounting period at this price.
$20,000
$16,000
$12,000
$8,000
Which of the following is the process of choosing whether to make a product in-house or purchase it from an external source?
Linear regression
Variance analysis
Cost-profit decision
Make-or-buy decision
