Quiz 2 Review Flashcards
Which endorsement consists of a mere signature and it the least secure?
Blank Endorsement
Which endorsement designates a particular person to who payment is to be made?
Special Endorsement
Which endorsement limits the liability of the endorser?
Qualified Endorsement
Which endorsement prevents the use of the instrument for anything except the stated use?
Restrictive Endorsement
The _________ is defined as the one to whom the check is payable
payee
The ______ is defined as the one who pays money to the payee
Drawee
The ________ is defined as the one who writes the check
Drawer
Which is not true of overtime pay?
They’re all correct
__________ is a program you pay into now for others and later others will pay for you
FICA
________ is a federal fee that you pay to support the federal government
FIT
_______________ is paid by the employer and based on your job description rated on a scale of 1 to 10
Worker’s Comp
This pay is based on the number of hours you work and your hourly pay
Gross Pay (income)
2/10, n/30 means
2% discount if paid within first 10 days
N = Net income
Net (full) amount is due within 30 days
n/10, EOM means
No discount
Full amount of bill is due within 10 days after the end of month
This inventory system continually monitors the level of inventory
Perpetual Inventory
This inventory system is taken at the end of each accounting period; the cost of unsold goods is calculated
Period Inventory
Revenue earned from the sale of merchandise to customers
Gross Sales
________________ is a contra-revenue account with a debit balance
Sales Returns and Allowance (SRA)
The formula for Net Sales is:
Gross Sales - Sales Discounts - SRA = Net Sales
The sale of merchandise on account (EOM) is recorded in the special journal known as ____________
Sales journal
Paying cash is recorded in the special journal known as ______________
Cash Payments Journal
Receiving cash from any source is recorded in the special journal known as ________________
Cash Receipts Journal
Buying supplies/merchandise on account is recorded in the special journal known as ____________
Purchases journal
A ledger that contains only an account of a single type and is not listed on the chart of accounts is known as a ________________
Subsidiary Journal
The sum of the accounts receivable subsidiary ledger will equal the ending balance in accounts receivable, the controlling account in the general ledger. This is known as ___________
Proving
When recording from the sales journal to the accounts receivable subsidiary ledger:
All statements are true
The posting at EOM from the sales journal to the general journal includes:
All statements are true
An account in the general ledger that accumulates the amount of sales tax owed
Sales Tax Payable
Sales Tax _________ is a new account, it is a liability account in the general ledger with a credit balance
Payable
