FPC END OF COURSE EXAM QUESTIONS AND ANSWERS
GRADED A+
✔✔at the beginning of the year, an employee elected to buy group term life insurance
as part of his benefit package through his companys cafeteria benefit plan. in may he
took out an individual life insurance policy. since he no longer needs group coverage,
he wants to replace the insurance option with increase contributions to his 401k plans.
is this possible?
a. yes, if both GTL and the 401k plan are part of the same cafeteria benefit program, he
can switch
b. yes but he will have to pay taxes on the amount.
c. no - ✔✔c. no
once selected, benefits cannot be changed or added to during the plan year (except for
a change in family status)
✔✔a record of the daily transaction of a business is:
a. balance sheet
b. journal
c. ledger
d. chart of accounts - ✔✔b. journal
the journal is a chronological record of transactions, in order of their occurence
✔✔a record of the business transactions by account is found in the:
a. balance sheet
b. journal
c. ledger
d. chart of accounts - ✔✔c. ledger
record of business transactions by account
✔✔what is normal accounting flow? - ✔✔transaction --> journal --> ledger --> financial
statements
✔✔a financial transaction is first posted in your organizations:
a. chart of accounts
b. ledger
c. journal
d. balance sheet - ✔✔c. journal
the first place a transaction is recorded
✔✔in which type of account (asset, liability, expense or revenue) would each of the
following entries appear?
a. a new payroll computer
, b. purchase of computer paper
c. money in a payroll checking account
d. wages paid to employees
e. ss tax and medicare tax withheld but not deposited
f. employer cost of group term life insurance
g. office furnitue
h. deposit of employer portion of social security tax and medicare tax
i. mortgage on the addition to your building - ✔✔a. a new payroll computer: ASSET
b. purchase of computer paper: EXPENSE
c. money in a payroll checking account: ASSET
d. wages paid to employees: EXPENSE
e. ss tax and medicare tax withheld but not deposited: LIABILITY
f. employer cost of group term life insurance: EXPENSE
g. office furniture: ASSET
h. deposit of employer portion of social security tax and medicare tax: EXPENSE
i. mortgage on the addition to your building: LIABILITY
✔✔how would each of the following be posted?
a. increase in asset account
b. decrease in liability account
c. increase an expense account
d. decrease an asset account
e. increase a revenue account - ✔✔a. debit
b. debit
c. debit
d. credit
e. credit
✔✔would each of the following entries be posted in the account as a debit (DR) or credit
(CR)?
a. purchase of a desk in an asset account
b. purchase of stationary in an expense account
c. withdrawal from a payroll checking account
d. employer contributions to a 401k plan in an expense account
e. state income tax withheld but not deposited in a liability account
f. federal income tax withheld but not paid in a liability account
g. mortgage payment in a liability account - ✔✔a. debit
b. debit
c. credit
d. debit
e. credit
f. credit
g. debit
✔✔an employee going to the payroll department to ask a question about his paycheck.
when he arrives, the desks are unattended, files are open, desk tops are covered with
GRADED A+
✔✔at the beginning of the year, an employee elected to buy group term life insurance
as part of his benefit package through his companys cafeteria benefit plan. in may he
took out an individual life insurance policy. since he no longer needs group coverage,
he wants to replace the insurance option with increase contributions to his 401k plans.
is this possible?
a. yes, if both GTL and the 401k plan are part of the same cafeteria benefit program, he
can switch
b. yes but he will have to pay taxes on the amount.
c. no - ✔✔c. no
once selected, benefits cannot be changed or added to during the plan year (except for
a change in family status)
✔✔a record of the daily transaction of a business is:
a. balance sheet
b. journal
c. ledger
d. chart of accounts - ✔✔b. journal
the journal is a chronological record of transactions, in order of their occurence
✔✔a record of the business transactions by account is found in the:
a. balance sheet
b. journal
c. ledger
d. chart of accounts - ✔✔c. ledger
record of business transactions by account
✔✔what is normal accounting flow? - ✔✔transaction --> journal --> ledger --> financial
statements
✔✔a financial transaction is first posted in your organizations:
a. chart of accounts
b. ledger
c. journal
d. balance sheet - ✔✔c. journal
the first place a transaction is recorded
✔✔in which type of account (asset, liability, expense or revenue) would each of the
following entries appear?
a. a new payroll computer
, b. purchase of computer paper
c. money in a payroll checking account
d. wages paid to employees
e. ss tax and medicare tax withheld but not deposited
f. employer cost of group term life insurance
g. office furnitue
h. deposit of employer portion of social security tax and medicare tax
i. mortgage on the addition to your building - ✔✔a. a new payroll computer: ASSET
b. purchase of computer paper: EXPENSE
c. money in a payroll checking account: ASSET
d. wages paid to employees: EXPENSE
e. ss tax and medicare tax withheld but not deposited: LIABILITY
f. employer cost of group term life insurance: EXPENSE
g. office furniture: ASSET
h. deposit of employer portion of social security tax and medicare tax: EXPENSE
i. mortgage on the addition to your building: LIABILITY
✔✔how would each of the following be posted?
a. increase in asset account
b. decrease in liability account
c. increase an expense account
d. decrease an asset account
e. increase a revenue account - ✔✔a. debit
b. debit
c. debit
d. credit
e. credit
✔✔would each of the following entries be posted in the account as a debit (DR) or credit
(CR)?
a. purchase of a desk in an asset account
b. purchase of stationary in an expense account
c. withdrawal from a payroll checking account
d. employer contributions to a 401k plan in an expense account
e. state income tax withheld but not deposited in a liability account
f. federal income tax withheld but not paid in a liability account
g. mortgage payment in a liability account - ✔✔a. debit
b. debit
c. credit
d. debit
e. credit
f. credit
g. debit
✔✔an employee going to the payroll department to ask a question about his paycheck.
when he arrives, the desks are unattended, files are open, desk tops are covered with
