Payroll Fundamentals 2 Exam Questions With Correct Answers

Payroll /




Fundamentals
/ //




2 Exam Questions With Correct Answers
// // // // // //




The /
/accounting /


/equation //states: //- //CORRECT //ANSWERS(S)✔✔Assets //= //Liabilities //+ //Owners //Equity




Owner's /
/Equity /


/has /


/two /


/components: //- /


/CORRECT //ANSWERS(S)✔✔Owner's //Equity //= //Contributed //Capital //+ //Retained //Earnings




Contributed /
/Capital //- /


/CORRECT /


/ANSWERS(S)✔✔The /


/amount //of //payments //in //cash //or //assets //that //the //owners //have //made //to //the //company




The /
/accounting /


/equation /


/can /


/be /


/expanded /


/to: //- /


/CORRECT //ANSWERS(S)✔✔Assets //= //Liabilties //+ //Contributed //Capital //+ //Retained //Earnings

,The //5 //different //accounts //of //a //typical //for-
profit //organization //- //CORRECT //ANSWERS(S)✔✔- //asset //accounts

- //liability //accounts

- //revenue //accounts

- //expense //accounts

- //owners' //equity //accounts



Asset /
/accounts //- /


/CORRECT //ANSWERS(S)✔✔Contains //the //value //of //items //owned //by //the //organization




Liability /
/accounts //- /


/CORRECT /


/ANSWERS(S)✔✔Indicates //the //money //that //the //organization //owes //to //its //creditors




Asset //accounts //include: //- //CORRECT //ANSWERS(S)✔✔- //Cash

- //Accounts //receivable

- //prepaid //expenses

- //inventory



Liability //accounts //include //- //CORRECT //ANSWERS(S)✔✔- //accounts //payable

- //salaries //and //wages //payable

- //vacation //pay //payable



Revenue /
/accounts //- /


/CORRECT /

, /ANSWERS(S)✔✔Used /
/to //record //the //income //earned //by //the //organization //during //the //accounting //cycle




Expense /
/accounts //- //CORRECT //ANSWERS(S)✔✔Costs //incurred //by //an //organization //in //the //process //of


//earning //revenue //during //a //designated //period //of //time




Equity /
/accounts //- /


/CORRECT /


/ANSWERS(S)✔✔Accounts /


/that //show //the //owners' //or //shareholders' //worth //or //interest //in //the //organization




Owners' /
/equity /


/is //divided //into: //- //CORRECT //ANSWERS(S)✔✔Contributed //capital //& //retained //earnings




General /
/ledger /


/accounts /


/consists //of //the //following //five //elements: //- //CORRECT //ANSWERS(S)✔✔- //account //name



- //opening //balance

- //reference

- //debit //and //credit //transactions

- //closing //balance



Each /
/journal /


/entry /


/must /


/contain /


/the /