exam 4 quiz questions Flashcards
Something legally transferable to another party is considered
negotiable
T or F? If the numerical and written amounts of a check do not agree; the bank will not accept it
Correct answer is False
T or F? To maximize money; bills should be paid immediately when they arrive
Correct answer is False
The drawee is
the financial institiuation on which a check is drawn or written
Check amounts are debited from the checking account balance
Correct answer is True
T or F? The magnetic ink character recognition numbers are located at the top; right hand corner of checks
Correct answer is False
The maker of the check is the individual; corporation; or legal party who signs it
Correct answer is True
Online banking is often called
e-banking
If a bank cashes a check that is later returned as NSF; whom does it charge to recover the amount lost
the person/entity who last endorsed the check
The endorsement that specifies the purpose; such as “for deposit only” is called a
restrictive endorsement
Payment listed on the day sheet should total the amount that is
depostited into the bank account
Deposit slips include all of the following payment methods except: cash; checks; electronic checks; travelers checks
electronic checks
Charges for services rendered are placed on the day sheet in the
charge column
When reconciling the bank statement with the practice checking account
add the outstanding deposits and subtract the outstanding checks to the bank statement balance
T or F? The deposit slip should include electronic deposits
Correct answer is False
Interest payments reflected on the bank statement should be
added to the practice’s financial records
T or F? Comparing financial records of the practice to bank statements is the reconciliation process
Correct answer is True
T or F? Proof of posting refers to reconciling the bank statement
Correct answer is False
T or F? The day sheet balance is the total of accounts receivables for the practice
Correct answer is True
T or F? Financial records must be checked for accuracy on a weekly basis
Correct answer is False
Checks written to replenish petty cash should be written payable to the
cash
If you summarized the physician’s financial situation in the basic accounting equation; which of the following would be included in the libility component
Amount owed to a medical supply company
T or F? Financial summary reports show how much was earned in a given period
Correct answer is True
T or F? The debts and money owed to the business are called libilities
Correct answer is False
The financial records of any business should always show
how much is owed; how much has been collected; how much was earned in a given period
Assets = liabilities + ?
capital
T or F? Charges and receipts should be entered at the end of every business day
Correct answer is False
T or F? The fiscal year follows the yearly calendar of January through December
Correct answer is False
T or F? The recording of the financial records of a business is known as bookkeeping
Correct answer is True
The amount earned before deductions are taken from an employee’s check is called
gross income
T or F? Tax witholding forms and the I-9 completed by new employees must be sent to the IRS before April 15 each year
Correct answer is False
T or F? The I-9 form is required by the IRS to verify identificaiton of the new employee
Correct answer is False
The form completed by a newly hired employee that specifies the number of withholding allowances is called
W4
T or F? Annual FUTA deals with office credit policies
Correct answer is False
