Betty's Section 11 Accounting

Question 1

6. A company’s fiscal year ends on September 30. It operates on what type of year for payroll tax purposes?
   A A fiscal year
   B A special accounting year
   C A calendar year
   D An overlapping year

Answer 1

A calendar year

Question 2

16. Where does accumulated depreciation appear on a balance sheet?
    A Current liabilities
    B Stockholders’ equity
    C Current assets
    D Property, plant and equipment

Answer 2

Current assets

Question 3

15. What is the equation which produces the balance sheet?
    A Net Earnings = Assets – Liabilities
    B Owner’s Equity = Assets + Liabilities
    C Assets = Owner’s Equity – Liabilities
    D Assets = Liabilities + Owner’s Equity

Answer 3

D Assets = Liabilities + Owner’s Equity

Question 4

17. What does the term “bottom line” on an income statement refer to?
    A Gross profit
    B Working capital
    C Net income
    D Net worth

Answer 4

C Net income

Question 5

Net Income plus Depreciation

Answer 5

CASH FLOW

Question 6

The account Unearned Revenues is which type of account?
Asset Liability Stockholders’ equity Expense

Answer 6

Liability

Question 7

1. The equation which provides the basis for the Balance Sheet is:

Answer 7

Assets (-) Liabilities = Equity

Question 8

7. Which is not a form of internal control?

Answer 8

Returning checks for absent employee’s to the payroll department

Question 9

6. The total wages reported quarterly on line 2 for the 941 Form must equal the total wages, tips and other compensation reported in Box 1 of the W-2 Form.

Answer 9

true

Question 10

2. A record of the business transactions by account is a:

a. Balance sheet
b. Journal
c. Ledger
d. Chart of accounts

Answer 10

c. Ledger

Question 11

The letters A L E remind you of what principle?

a. A/R-Liabilities = Earnings
b. Assets=Liabilities+Equity
c. Assets-Liabilities=Equity
d. Both B & C

Answer 11

Assets-Liabilities=Equity

Question 12

Your firm uses the allowance method for bad debt expense. When, on May 6, you receive confirmation that Customer A is bankrupt and its $400 account receivable is worthless, you will:
A. Debit Bad Debt Expense for $400
B. Debit Allowance For Doubtful Accounts for $400
C. Debit Accounts Receivable for $400
D. Credit Allowance For Doubtful Accounts for $400

Answer 12

Debit Allowance For Doubtful Accounts for $400

Question 13

Federal Form 941 must be filed:
A. Annually by January 31 following the year covered in the 941
B. Annually by March 15 following the year covered in the 941
C. Quarterly by the last day of the month following the end of the quarter
D. Quarterly by the last day of the month following the end of the quarter or if the employer made all 941 tax deposits timely, by the 10th day of the 2nd month after the end of the qtr.

Answer 13

Quarterly by the last day of the month following the end of the quarter or if the employer made all 941 tax deposits timely, by the 10th day of the 2nd month after the end of the qtr.

Question 14

A company’s total wage and tax information on its W-2 paper forms is presented on:
A. Form W-2c
B. Form W-3
C. Form W-2R
D. Form SS-4

Answer 14

Form W-3