Quiz 2 Review

Question 1

Which endorsement consists of a mere signature and it the least secure?

Answer 1

Blank Endorsement

Question 2

Which endorsement designates a particular person to who payment is to be made?

Answer 2

Special Endorsement

Question 3

Which endorsement limits the liability of the endorser?

Answer 3

Qualified Endorsement

Question 4

Which endorsement prevents the use of the instrument for anything except the stated use?

Answer 4

Restrictive Endorsement

Question 5

The _________ is defined as the one to whom the check is payable

Answer 5

payee

Question 6

The ______ is defined as the one who pays money to the payee

Answer 6

Drawee

Question 7

The ________ is defined as the one who writes the check

Answer 7

Drawer

Question 8

Which is not true of overtime pay?

Answer 8

They’re all correct

Question 9

__________ is a program you pay into now for others and later others will pay for you

Answer 9

FICA

Question 10

________ is a federal fee that you pay to support the federal government

Answer 10

FIT

Question 11

_______________ is paid by the employer and based on your job description rated on a scale of 1 to 10

Answer 11

Worker’s Comp

Question 12

This pay is based on the number of hours you work and your hourly pay

Answer 12

Gross Pay (income)

Question 13

2/10, n/30 means

Answer 13

2% discount if paid within first 10 days
N = Net income
Net (full) amount is due within 30 days

Question 14

n/10, EOM means

Answer 14

No discount
Full amount of bill is due within 10 days after the end of month

Question 15

This inventory system continually monitors the level of inventory

Answer 15

Perpetual Inventory

Question 16

This inventory system is taken at the end of each accounting period; the cost of unsold goods is calculated

Answer 16

Period Inventory

Question 17

Revenue earned from the sale of merchandise to customers

Answer 17

Gross Sales

Question 18

________________ is a contra-revenue account with a debit balance

Answer 18

Sales Returns and Allowance (SRA)

Question 19

The formula for Net Sales is:

Answer 19

Gross Sales - Sales Discounts - SRA = Net Sales

Question 20

The sale of merchandise on account (EOM) is recorded in the special journal known as ____________

Answer 20

Sales journal

Question 21

Paying cash is recorded in the special journal known as ______________

Answer 21

Cash Payments Journal

Question 22

Receiving cash from any source is recorded in the special journal known as ________________

Answer 22

Cash Receipts Journal

Question 23

Buying supplies/merchandise on account is recorded in the special journal known as ____________

Answer 23

Purchases journal

Question 24

A ledger that contains only an account of a single type and is not listed on the chart of accounts is known as a ________________

Answer 24

Subsidiary Journal

Question 25

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 ___________

Answer 25

Proving

Question 26

When recording from the sales journal to the accounts receivable subsidiary ledger:

Answer 26

All statements are true

Question 27

The posting at EOM from the sales journal to the general journal includes:

Answer 27

All statements are true

Question 28

An account in the general ledger that accumulates the amount of sales tax owed

Answer 28

Sales Tax Payable

Question 29

Sales Tax _________ is a new account, it is a liability account in the general ledger with a credit balance

Answer 29

Payable