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School Work > Theory Review > Flashcards

Theory Review Flashcards

1
Q

A $45,000 90-day note payable comes to maturity. The amount to be paid including interest at 5% is 43,890.41

A

False

The right answer should be calculated like this:

$45,0000.05%90-days/365=556.16 interest
45,000+556.16=45,556.14

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2
Q

A 5,000 90-day note at 10% was issued on November 15, 2020 . What it the amount of the accrued interest on December 31 2020?

A

$63.01

To calculate
$50000.1046/365=63.01

To get the 46 days add 15+31=46

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3
Q

A bank statement will not include?

A

A list if petty cash amounts

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4
Q

A cash sale would be recorded in the what journal

A

Cash Receipts

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5
Q

A deposit in transit is a deposit that has been recorded by the bank but not the business

A

False

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6
Q

A FIFO PEPETURAL inventory system :

A

Assigns the most recent costs to the ending inventory

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7
Q

A purchase made on terms of 2/10, n 30 would be recorded in the what Journal

A

Purchase.

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8
Q

A special journal (a subsidiary journal ) is an accounting journal designed to record one specific type of transaction

A

True

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9
Q

A three-month note dated April 8 matures on :

A

July 8

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10
Q

A written promise to pay a specified amount of money at a particular future date is called

A

Promissory note

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11
Q

All of the following are payroll costs that are expenses of the employer except?

A

Employee income Taxes

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12
Q

An account Recevible ledger is?

A

A subsidiary ledger that contains an account for each customer that buys on credit from the company

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13
Q

An adjusting entry to record deprecition for the year would be recorded in the what journal?

A

General Journal

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14
Q

An investment of equipment by the owner would be recorded in the what Journal?

A

The General journal.

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15
Q

An NSF cheque returned with the bank statement would be what?—– From the book balance when reconciling the statement.

A

Deducted from.

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16
Q

Canada pension plan (CPP) contributions, Employment Insurance(EI) premiums, and income tax are statutory payroll deductions.

A

True.

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17
Q

Canada Pension plan deductions are calculated on all earnings

A

False

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18
Q

Customer individual accounts included in a special (subsidiary) ledger are linked to and controlled by the account receivable account in the ——-

A

General ledger

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19
Q

Employment insurance amount are levied equally on both the employee and employer

A

False

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20
Q

Goods in transit are never included in inventory.

A

False

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21
Q

Gross pay is?

A

The amount an employee earns before any deductions are withheld

22
Q

If a customer cheque that has been deposited is returned with the bank statement marked iinsufficient funds (NSF) it would appear on the bank reconciliation as a deduction for the book balance.

A

True

23
Q

If the amount withheld from the payroll fit employee EI contributions is $ 542 the employer contribution for EI will be?

A

$758.80

$542*1.4%= $758.80

24
Q

If the supplier is responsible for freight charges the goods are FOB destination

A

True

25
Q

Investment of money in the business by the owner are recorded in what journal?

A

Cash receipt journal

26
Q

LIFO, FIFO, weight Average, and specific Identification are methods of record-keeping for credit customers

A

False

27
Q

Making periodic adjusting entries for estimated bad debt expenses associated with offering sales on credit to customers is necessary because of this generally accepted accounting principle

A

Matching principle.

28
Q

Net pay is equal to

A

Gross pay minus all deduction.

29
Q

Net pay is,:

A

The amount an employee receives after all deductions are withheld.

30
Q

Part of the cost of doing business is to recognize that credit sales brings the risk of——-

A

Bad debt.

31
Q

Payroll dedication withheld from employees become a liability for the employer

A

True

32
Q

The account payable account is the controlling account for:

A

The total of all credit purchase

33
Q

The cash receipts journal is an example of a special journal (a subsidiary Journal

A

True

34
Q

The cash receipt journal would include cash received from all of the following except?

A

Payment by the company for merchandise inventory.

35
Q

The company December 31 unadjusted trial balance included the following items:

Account Recivables, be it balance of $ $67.250, Allowance for doubtful account , credit balance of $843

What amount should be debited to bad Debt Expense, assuming 5% of the outstanding account Receivable as of December 31 will be uncollectible.

A

$67.250*5%=$3,362.50-843=$
$ 2,519.50

36
Q

The entry to record a cash investment by the owner would be recorded in ———-journal

A

Cash receipts journal

37
Q

The entry to record a sales return would be recorded in the ——–Journal

A

General

38
Q

The entry to record payment of the telephone bill would be in the ———-journal

A

Cash Disbursement

39
Q

The sales journal records:

A

All sales made on credit.

40
Q

The sum of the account balance in the Account Receivable Subsidiary ledger should equal the balance in the Account Receivable Account in the General ledger

A

True

41
Q

The two main types of inventory systems are perpetual system and the LIFO system

A

False

42
Q

To increase the petty cash fund you would debit———and credit——-

A

Petty cash , cash

43
Q

Under the allowance method the entry to write off an account that has been deemed uncollectible had an impact on the net income of the firm

A

False

44
Q

Unearned Revenue is revenue that:

A

We have collected payment for but have not done the work.

45
Q

Using the fiFo inventory costing method, the earliest purchase cost are used

A

On the income statement as cost of goods sold

46
Q

When business uses the four basic special journals, the general journal is used to record all sales transaction

A

False

47
Q

When the specific identification Invetory valuation method is used, all of the purchases are averaged

A

False

48
Q

When goods are FOB point of Sales the buyer should

A

Include them in the inventory while they are in transit

49
Q

When goods in transit are included in the purchase buyer, a inventory the goods are FOB———Shipping point.

A

Shipping point

50
Q

When reconciling the bank balance, an unreorded bank service fee should be

A

Deducted from the book balance

School Work (3 decks)

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