final accounting review (1-15) --
McGraw hill exam questions &
answers10
cash discounts are offered by a business to encourage charge customers to pay promptly -
ANSWERS-true
The increase side of the account Sales Discounts is a credit - ANSWERS-false
the sales returns and allowances account is important to a business because it shows the
amount of credit granted to dissatisfied customers - ANSWERS-true
The balance side of any contra account is always on the side opposite the balance side of the
account it decreases. - ANSWERS-true
The Cash in Bank account is debited for the amount the employees actually earn in the pay
period. - ANSWERS-false
The amount entered for Payroll Tax Expense is the total gross earnings of the pay period. -
ANSWERS-false
The social security tax is paid by both employer and employees. - ANSWERS-true
Amounts deducted from employees' earnings and held for payment by the employer become
liabilities to the business. - ANSWERS-true
, The entry for Salaries Expense is recorded each pay period, but the entry for Payroll Tax Expense
is recorded only at the end of the year. - ANSWERS-false
An employer normally pays federal withholding taxes, social security taxes, and medicare taxes
once a year. - ANSWERS-false
A Form W-4 lists the marital status and number of exemptions claimed by the employee. -
ANSWERS-true
the number of hours worked multiplied by the hourly wage gives the net earnings for the pay
period - ANSWERS-false
An example of a voluntary deduction is one for a health insurance premium. - ANSWERS-true
The overtime rate set by the Fair Labor Standards Act of 1938 is two times the employee's
regular hourly pay rate - ANSWERS-false
The purchases account is increased by debits - ANSWERS-true
every purchase on account results in a debit to accounts payable - ANSWERS-false
the purchases account is used only to record the purchases of merchandise for sale - ANSWERS-
true
an invoice with terms of 2/10, n/30, dated June 17, must be paid by July 17 in order to take
advantage of the cash discount - ANSWERS-false
shipping charges are considered to be a cost of merchandise - ANSWERS-true
McGraw hill exam questions &
answers10
cash discounts are offered by a business to encourage charge customers to pay promptly -
ANSWERS-true
The increase side of the account Sales Discounts is a credit - ANSWERS-false
the sales returns and allowances account is important to a business because it shows the
amount of credit granted to dissatisfied customers - ANSWERS-true
The balance side of any contra account is always on the side opposite the balance side of the
account it decreases. - ANSWERS-true
The Cash in Bank account is debited for the amount the employees actually earn in the pay
period. - ANSWERS-false
The amount entered for Payroll Tax Expense is the total gross earnings of the pay period. -
ANSWERS-false
The social security tax is paid by both employer and employees. - ANSWERS-true
Amounts deducted from employees' earnings and held for payment by the employer become
liabilities to the business. - ANSWERS-true
, The entry for Salaries Expense is recorded each pay period, but the entry for Payroll Tax Expense
is recorded only at the end of the year. - ANSWERS-false
An employer normally pays federal withholding taxes, social security taxes, and medicare taxes
once a year. - ANSWERS-false
A Form W-4 lists the marital status and number of exemptions claimed by the employee. -
ANSWERS-true
the number of hours worked multiplied by the hourly wage gives the net earnings for the pay
period - ANSWERS-false
An example of a voluntary deduction is one for a health insurance premium. - ANSWERS-true
The overtime rate set by the Fair Labor Standards Act of 1938 is two times the employee's
regular hourly pay rate - ANSWERS-false
The purchases account is increased by debits - ANSWERS-true
every purchase on account results in a debit to accounts payable - ANSWERS-false
the purchases account is used only to record the purchases of merchandise for sale - ANSWERS-
true
an invoice with terms of 2/10, n/30, dated June 17, must be paid by July 17 in order to take
advantage of the cash discount - ANSWERS-false
shipping charges are considered to be a cost of merchandise - ANSWERS-true
