Chapter 4 Flashcards
What is the expenditure cycle?
It is the group of functions that acquire property, goods and services; and labor; pay for the them; and classify, summarize and report what is acquired and what is paid.
What services are covered under a monthly contract?
Janitorial Security Landscaping Elevator/escalator HVAC Maintenance Pest Control Metal Maintenance Waste removal/recycling
What is the formula fr determining productivity rate?
Productivity Rate=Rate/hours
What factors should be considered when evaluating service contracts?
You should consider price, insurance levels, employee benefits, uniform costs, company reputation, etc.
What information should be included in the vendor database?
Vendor legal name Vendor remittance address Vendor Federal Tax ID# Minority status Vendor entity type (corporation, partnership, sole propetership)
What is the role of the purchase order?
It defines the scope of work, binds the vendor to a quoted price and provides assurance that the expenditure has been approved by the correct person.
What is the first step in invoice coding?
To determine if the expense item was included in the budget.
What is a holding file?
It is a computer file for all unpaid invoices.
How are invoices posted?
At the end of the accounting period, paid invoices are transferred from the paid invoice file to each individual expense category in the general ledger based on the assigned expense code.
What is petty cash?
A limited amount of currency and coin on hand to pay for COD type purcahses.
What is an employee payroll?
The process of accumulating employee data such as claimed exemptions, wage rates, and benefits then applying this information to the ongoing hourly information and generating paychecks on a periodic basis.
What types of taxes may be withheld from a paycheck?
FICA-Social security
Income taxes-Federal, state, and local
FUTA-Federal unemployment
SUTA-Stae unemployment
List the employees on a typical buiding payroll.
Property Manager Assistant Property Manager Receptionist Chief Engineer Assistane Engineer Porter (cleaning) Security Parking Lot Attendant Accounts Payable Clerk Accounts Receiveable Clerk Project Accountant
How is employee work time alocated for reporting purposes?
It is allocated by either the actual time spent working on individual projects (maintenance, painting, etc) or it is allocated by a set percentage split determined by square footage occupied or another arrangement.
What information is needed to calculate basic wage deductions for an employee?
Hours worked Gross wages FICA Federal and State Withholdings Other deductions such as Health plans, etc.
List several important factors to consider when evaluating a vendor bid.
Hourly rates, productivity ratios, experience, reputation, insurance, employee benefits, hidden costs.
What information should be included on all invoices?
Assigned vendor code, appropriate chart of accounts code, brief description of goods or services, amount to be paid, signature of person who received the goods or services; could also include PO number, date received, vendor invoice number, and due date
How should a petty cash fund be handled?
limited cash on hand, used for COD purchases only, used only when necessary,receipt submitted for all purchases, processed like any other invoice.
Where should building employee salaries be allocated?
the expense accounts of projects they worked on with the amount determined by the number of hours worked on a project.
A janitoria contract is worth $3,000 per month, with employees cleaning from six until midnight five days a week. What is the janitorial contractos productivity rate?
a) $12
b) $25
c) $120
d) $600
b) $25
To avoid duplicate payments to a vendor, all apyments should be made from the:
a) original invoice
b) vendor invoice copy
c) chart of accounts code
d) vendor statement of account
a) original invoice
Which information may be omitted from the invoice coding process?
a) amount to be paid
b) vendor remittance address
c) description of goods and services
d) chart of accounts code
b) vendor remittance address
An engineer is paid $36.50 per hour, plus overtime at one-and-a-half times his normal pay rate. During the past two week pay period, he worked seven hours of overtime and took no vacation or sick pay. What are his gross wages for the period?
a) $365.00
b) $1,843.25
c) $2,900.00
d) $3,303.25
d) $3,303.25
