exam 4 quiz questions

Question 1

Something legally transferable to another party is considered

Answer 1

negotiable

Question 2

T or F? If the numerical and written amounts of a check do not agree; the bank will not accept it

Answer 2

Correct answer is False

Question 3

T or F? To maximize money; bills should be paid immediately when they arrive

Answer 3

Correct answer is False

Question 4

The drawee is

Answer 4

the financial institiuation on which a check is drawn or written

Question 5

Check amounts are debited from the checking account balance

Answer 5

Correct answer is True

Question 6

T or F? The magnetic ink character recognition numbers are located at the top; right hand corner of checks

Answer 6

Correct answer is False

Question 7

The maker of the check is the individual; corporation; or legal party who signs it

Answer 7

Correct answer is True

Question 8

Online banking is often called

Answer 8

e-banking

Question 9

If a bank cashes a check that is later returned as NSF; whom does it charge to recover the amount lost

Answer 9

the person/entity who last endorsed the check

Question 10

The endorsement that specifies the purpose; such as “for deposit only” is called a

Answer 10

restrictive endorsement

Question 11

Payment listed on the day sheet should total the amount that is

Answer 11

depostited into the bank account

Question 12

Deposit slips include all of the following payment methods except: cash; checks; electronic checks; travelers checks

Answer 12

electronic checks

Question 13

Charges for services rendered are placed on the day sheet in the

Answer 13

charge column

Question 14

When reconciling the bank statement with the practice checking account

Answer 14

add the outstanding deposits and subtract the outstanding checks to the bank statement balance

Question 15

T or F? The deposit slip should include electronic deposits

Answer 15

Correct answer is False

Question 16

Interest payments reflected on the bank statement should be

Answer 16

added to the practice’s financial records

Question 17

T or F? Comparing financial records of the practice to bank statements is the reconciliation process

Answer 17

Correct answer is True

Question 18

T or F? Proof of posting refers to reconciling the bank statement

Answer 18

Correct answer is False

Question 19

T or F? The day sheet balance is the total of accounts receivables for the practice

Answer 19

Correct answer is True

Question 20

T or F? Financial records must be checked for accuracy on a weekly basis

Answer 20

Correct answer is False

Question 21

Checks written to replenish petty cash should be written payable to the

Answer 21

cash

Question 22

If you summarized the physician’s financial situation in the basic accounting equation; which of the following would be included in the libility component

Answer 22

Amount owed to a medical supply company

Question 23

T or F? Financial summary reports show how much was earned in a given period

Answer 23

Correct answer is True

Question 24

T or F? The debts and money owed to the business are called libilities

Answer 24

Correct answer is False

Question 25

The financial records of any business should always show

Answer 25

how much is owed; how much has been collected; how much was earned in a given period

Question 26

Assets = liabilities + ?

Answer 26

capital

Question 27

T or F? Charges and receipts should be entered at the end of every business day

Answer 27

Correct answer is False

Question 28

T or F? The fiscal year follows the yearly calendar of January through December

Answer 28

Correct answer is False

Question 29

T or F? The recording of the financial records of a business is known as bookkeeping

Answer 29

Correct answer is True

Question 30

The amount earned before deductions are taken from an employee’s check is called

Answer 30

gross income

Question 31

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

Answer 31

Correct answer is False

Question 32

T or F? The I-9 form is required by the IRS to verify identificaiton of the new employee

Answer 32

Correct answer is False

Question 33

The form completed by a newly hired employee that specifies the number of withholding allowances is called

Answer 33

W4

Question 34

T or F? Annual FUTA deals with office credit policies

Answer 34

Correct answer is False