WebStudy with Quizlet and memorize flashcards containing terms like A schedule that accounts for the differences between cash balance shown on the bank statement and the cash balance shown on the general ledger, Note receivable collected by bank in favor of the depositor and credited to the account of the depositor, Deposit in transit and more. d. The operating cycle is a concept applicable both to Which of the following is not true concerning the Internal ControlIntegrated Framework? Determine which of the following entries is correct to record cash sales and the shortage. ), Determine which of the items below would appear in the Checks and Debits column of a bank statement and would cause a decline in the account's balance. (Check all that apply. -Expenses would not be recorded in the period in which they were incurred, Jackson Brothers established a petty cash fund of $200 at the beginning of the year, but it decides to reduce the amount in the fund to $130. A ________ is a check that is written on behalf of a person and will be charged against a nonfinancial institution's account. \text{Salaries Expense}&6,000\\ Additionally, employees who earn more than $500 per month must have $5.75 withheld from their pay. Review the statements below and determine which is correct regarding this discrepancy. Proper internal control means that responsibility for a _________(task/shortage/sale) is clearly. general trivia questions and answers checkpoint operation failed cannot create the Only a little more important than direct finance in the United States C. Much more important than direct finance through stock and bond markets D. The same thing as finance through stock and 138. Which statement below describes the internal control procedure of insuring assets and bonding key employees? However, Walmart does sell recovered (and new) pallets online. Financial intermediation is: A. ), Beginning-of-period balance in the account. True False, Extremely low interest rates favor investors and boost the incentive to Currently, it contains $11 in cash and receipts for supplies of $40 and delivery expenses of $49. Which of the following is not a reason that your checking account balance might change from one month to another? Calculates employee net pay, generates paychecks, completes and files monthly, quarterly, and annual payroll tax forms. A) United Nation's resolution to change the Fed fund rate. It started out with $100 in the fund at the beginning of the month. Technologically advanced systems can record who made entries, the date and time of the entry and the source of the entry. ** Three If you were debating MM, how would you counter them? Which of the following is not a result or characteristic of the Sarbanes-Oxley Act of 2002? Handling cash is separate from recordkeeping of cash. WebStudy with Quizlet and memorize flashcards containing terms like Expenses, Company starts a $350 petty cash fund on sep 9. Demonstrate the correct journal entry to create the account by choosing the correct action from those below. Twenty-three and $\frac{10}{100}$. -It records the effects of cash overages and cash shortages, Identify when the Petty Cash fund is debited or credited by selecting the correct answer below. Choose the statement below which is correct regarding which bank reconciliation items require adjusting journal entries. What payroll tax responsibilities does Heads Up Hat Corporation have, especially regarding FICA taxes? When you receive May's bank statement, you discover the following additional items: Bank fees, $271; Interest earned, $163. What is always true about the General Ledger? The process of earning simple interest does not allow a depositor or investor to earn interest on any previously earned interest. (Check all that apply. ** Sold 130 alarm systems for $580 each plus sales tax of 5 percent. Determine the statements below that are true regarding why a bank reconciliation is used. You can be assured that if your ATM query shows you have a certain balance in your checking account, that figure is more accurate than the amount in your check register. 3. Choose the items below that would be subtracted from the book balance on a bank reconciliation. Multiple choice question. Human ______________ (error/fraud) involves intent to defeat internal controls for personal gain. WebStudy with Quizlet and memorize flashcards containing terms like True or false: An owner of a small business usually knows if the business is receiving the assets and services the company paid for., What is the purpose of internal controls?, How has the Sarbanes-Oxley Act (SOX) impacted the internal control of companies? No deposit was made by the company until August 24, 20--. Some employees have union dues or garnishments deducted from their pay. The taxes imposed under the Social Security Act consist of: All of the following are taxes that are imposed under Social Security Act: 15. \begin{aligned} ________ are nondepository institutions that sell shares to individuals and use the proceeds to invest in securities to create mutual funds. \text{Direct labor}\hspace{45pt} 8,400\\ WebStudy with Quizlet and memorize flashcards containing terms like Describe the internal control principle of separating recordkeeping from custody of assets by completing the following sentence. Only a little more important than direct finance in the United States C. Much more important than direct finance through stock and bond markets D. The same thing as finance through stock and Glen is married with eight withholding allowances and is paid $50,000 per year. If you have $10,000 that you do not currently need for expenses and you wish to put it somewhere so that it will earn a return, which of the following financial institutions would you not choose? A bank service charge appears on the bank statement as a, A bank correction of an error from recording a $50 check paid as $500 appears on the bank statement as a. credit memorandum that increases the account balance. Jackson Co. needs to replenish its petty cash fund. Other data: Ashe, an employer, has made timely deposits of FICA taxes and withheld income taxes during the first quarter of 2018. The adjusted bank balance must equal the adjusted cash balance per books. Financial institutions loan funds at a ________ they pay depositors. WebStudy with Quizlet and memorize flashcards containing terms like Determine which of the items below would show up on a monthly bank statement. (Check all that apply.). Demonstrate the journal entry to replenish the account by choosing the correct actions from those below. Determine which of the statements below is correct regarding information reflected on a monthly bank statement. Which of the following should not affect your choice of a financial institution? WebJax Company's (a monthly depositor) tax liability (amounts withheld from employees' wages for federal income tax and FICA tax plus the company's portion of the FICA tax) for July was $1,210. During December, Job Nos. 82 terms. WebStudy with Quizlet and memorize flashcards containing terms like Extremely low interest rates favor investors and boost the incentive to save. Frances Newberry is the payroll accountant for Pack-It Services of Jackson, Arizona. ** Liability 2. Melinda is single with 0 withholding allowance and is paid $39,260 per year. Burtin Book Memorabilia is a semiweekly depositor. It had a total cost of $5,000. A requirement by some banks requiring depositors to maintain minimum cash balances in their bank accounts. the depositor can use a check. All of the employees worked a predominant number of hours within the city. Demonstrate the journal entry to replenish the account by choosing the correct actions from those below. Web1. A check drawn by a depositor for $150 in payment of a liability was recorded in the journal as $510. This Friday, were taking a look at Microsoft and Sonys increasingly bitter feud over Call of Duty and whether U.K. regulators are leaning toward torpedoing the Activision Blizzard deal. The bank notifies the depositor of each deduction to the account with a debit memorandum. WebKatie had a high monthly food bill before she decided to cook at home every day in order to reduce her expenses. WebStudy with Quizlet and memorize flashcards containing terms like 23) Which of the following is an example of a formal group? The term structure of interest rates is measured by a(n) ________, which shows the interest rate offered at each maturity level. decedent's debts IRS lens mortgage liens corporate franchise liens, The millage breakout for ad valorem When a consumer deposits a check that bounces, banks sometimes charge a fee to the depositor, usually in the range of $10 to $19. Currently, it contains $5 in cash and receipts for supplies of $40 and delivery expenses of $49. Round your final answers to 2 decimal places.). 157 was the only job finished that was not sold. Deposit made on September 5 and processed by the bank on September 6. Which of the following are correct regarding why management uses internal controls? Describe why a probabilistic model is more appropriate than a deterministic model. Checks written by another depositor but charged against this companys account. (Check all that apply. Bonding employees who handle cash is important because it: What is the purpose of internal controls? Far less important than direct finance through stock and bond markets B. Debit cards allow you to pay for a purchase later when the bill arrives. WebStudy with Quizlet and memorize flashcards containing terms like True or false: An owner of a small business usually knows if the business is receiving the assets and services the company paid for., What is the purpose of internal controls?, How has the Sarbanes-Oxley Act (SOX) impacted the internal control of companies? (Check all that apply. All jobs, except for Job No. a.The revenue activities of a retail business involve providing services to customers. WebStudy with Quizlet and memorize flashcards containing terms like Short-term financing not backed by collateral is called: , Simone has worked as an editorial assistant at a magazine publisher for the last six months. WebStudy with Quizlet and memorize flashcards containing terms like 23) Which of the following is an example of a formal group? True False, Extremely low interest rates favor investors and boost the incentive to All of the following are objectives of internal control except. \text{Dividends}&3,000\\ An NSF check appears on the bank statement as a. debit memorandum that decreases the account balance. ), Note collected by the bank for the depositor, Recall the preparation of a bank reconciliation by selecting the correct items below. 5. Explain your answer. Which of the following would be the best place to put the $3,000? $$, *Find the family of all antiderivatives of each derivative. Identify the purpose of a balanced budget amendment. Katie's savings are an example of an annuity. \text{Salaries payable}&&\text{1,500}\\ Giblin's Goodies pays employees weekly on Fridays. Merchants Bank also requires a minimum deposit of $100, charges no monthly fee, but a per check charge of 15 cents. To maintain control of cash payments, all payments should be made by check except. To show this increase in the petty cash account, you would: The petty cashier is responsible for making payments from the petty cash fund. Currently, it contains $11 in cash and receipts for supplies of $40 and delivery expenses of $49. Jackson Brothers decided to create a petty cash fund. mam90. State and local government employers must make their tax deposits according to a different schedule than private employers. WebStudy with Quizlet and memorize flashcards containing terms like Short-term financing not backed by collateral is called: , Simone has worked as an editorial assistant at a magazine publisher for the last six months. Jackson Brothers established a petty cash fund of $200 at the beginning of the year, but it decides to reduce the amount in the fund to $130. Monthly cash expenses are calculated as a. \displaystyle\int_{1}^{5}\displaystyle\int_{0}^{2} \frac{x}{\sqrt{y+x^2}}\ dx\ dy A monthly depositor's employment taxes total $3,800 on Wednesday, March 31, 20--, the end of the calendar quarter. Expenses usually have the word "expense" in the account title. Explain how depositors can check for errors by completing the following sentence. Debit Cash $1,000 and credit Notes Receivable $1,000. ** Recognized the accrued interest on the note payable at December 31, 2019. NSF check, Deposit in transit, interest paid by bank. A depositor's account is a(n) __________ (liability/asset/expense) on the bank's records, but it is a(n) ________ (liability/asset/expense) on the books of the account owner. The purpose of a labor report is to do what? gela075 Plus. 12. A ________ is a check that is written on behalf of an individual and will be charged against a large well-known financial institution or credit card sponsor's account. e. Wage supplements to cover difference between employees' salaries and their military pay. (c) Indicate the amount pertaining to each letter. The following employees of Memory Bytes of Titusville, Washington, are paid in different frequencies. Another name for these types of financial institutions is. Identify the item below that would be added to the book balance. \end{array} Brown Co. decides to increase the amount in its petty cash fund from 100 to $150. **6. On Schedule B of Form 941, the employer does not show the date of each tax deposit during the quarter. **19. About $13 \%$ of the population is left-handed. (Check all that apply.). Her boss is impressed wit h her dedication and hard work, and assigns her the additional task of serving as a liaison for freelance writers. (Check all that apply.). A seller of goods or services, usually a manufacturer The operating cycle always is one year in duration. The information on the bank statement reflects the bank's records of the depositor's account. Suny Bank requires a minimum deposit of $100, charges a monthly fee of $8, plus 5 cents a check. \text{Merchandise inventory (23 @ \$280)}&&\text{6,440}\\ Listen to the complete Paid$1,950 in warranty repairs during the year. 154 and Job No. WebStudy with Quizlet and memorize flashcards containing terms like What is the purpose of internal controls? A. \textbf{Distance} && \textbf{Gas Used}\\ All sales were on account. true. Prop 30 is supported by a coalition including CalFire Firefighters, the American Lung Association, environmental organizations, electrical workers and businesses that want to improve Californias air quality by fighting and preventing wildfires and reducing air pollution from vehicles. NSF check, Deposit in transit, interest paid by bank. WebStudy with Quizlet and memorize flashcards containing terms like Determine which of the items below would show up on a monthly bank statement. You are closing on the purchase of a new home and your closing costs including down payment are $10,500. Which of the following are principles of internal control? NSF check from customer is returned on September 25 but not yet recorded by this company. **2. \text{Retained earnings}&&\text{91,605}\\ To which parties does an employer have fiduciary duty when it incurs payroll liabilities? WebStudy with Quizlet and memorize flashcards containing terms like The principles of internal control include _____., An internal control system consists of the policies and procedures managers use to _____. WebStudy with Quizlet and memorize flashcards containing terms like bank reconciliation, bank statement, cash and more. **10. $990 C. $630 D. $750. -Note collected by the bank for the depositor. A. \end{array} WebStudy with Quizlet and memorize flashcards containing terms like Cash is the only kind of liquid asset. 82 terms. WebStudy with Quizlet and memorize flashcards containing terms like What are the three main types of financial institutions available for helping you manage you finances?, Choose all statements that describe a "bank. Review the following statements and select the ones which accurately describe a Petty Cash fund. Which mountain ranges resulted from the collision of what is now the Indian subcontinent with Asia? WebStudy with Quizlet and memorize flashcards containing terms like The seller, A definite termination date must be included, $15,000 and more. **21. Katie's savings are an example of an annuity. Place the selected steps below in the correct order of occurrence, 1. \text{Prepaid rent}&&\text{3,000}\\ Financial intermediation is: A. The note had an 8 percent interest rate and a one-year term to maturity. Study with Quizlet and memorize flashcards containing terms like False, True, True and more. 82 terms. 158, were completed in December. Describe what a petty cash fund is by completing the following sentence. 6. linux set 3. 5. At the end of the month, Brown Co.'s petty cash fund contains $4 in cash and receipts for postage of $50 and delivery expenses of $46. (Unemployment taxes were not paid at this time.) The fund was initially established with $100. B) First National -$6.00; City Bank -$4.00. Her boss is impressed wit h her dedication and hard work, and assigns her the additional task of serving as a liaison for freelance writers. Tax Liability Amount: $42,300 annual payroll taxes. WebStudy with Quizlet and memorize flashcards containing terms like The seller, A definite termination date must be included, $15,000 and more. Debit Bank Service Charge Expense $60 and credit Cash $60. However, that did not affect WorldCom's financial reporting for periods prior to the merger.) The operating cycle sometimes is longer than one year in duration. Allison is a recent college graduate and is looking for a bank in which to open a checking account. a. Because of this, every time the account owner makes a deposit, the bank (debits/credits) the account owner's account. WebStudy with Quizlet and memorize flashcards containing terms like False, True, True and more. FICA excludes from coverage all of the following kinds of employment except: All of the following kinds of employment are excluded from FICA coverage: 13. The term structure is often based on rates of return or yields offered by ________ which are ________ issued by the U.S. Treasury with different maturities. Jackson Co. needs to replenish its petty cash fund. -ensure reliable accounting -protect assets -promote efficient operations -uphold company policies -all of the above, An effective system of internal WebStudy with Quizlet and memorize flashcards containing terms like Common payment choices for everyday activities include all of the following except A. A cash register tape reflected total sales equaling $100, but the cash in the cash register drawer equaled $105. \ Child Psych - Exam 2. The company revised its estimate of uncollectible accounts based on prior years' experience. During the 12 months ended December 31, 2016, First Class Maids: Select all answers which apply. Describe what a petty cash fund is by completing the following sentence. (Check all that apply. Demonstrate the journal entry to replenish the account and recognize its shortage by choosing the correct action from those given below, In preparing a monthly bank reconciliation, a business follows several steps. Assuming that Allison could invest any funds not required for a minimum deposit in a one-year CD paying 6 percent, what would be the monthly cost to Allison for First National and City Bank? On December 1, Job No. Describe the purpose of a purchase requisition by selecting the correct answer below. WebStudy with Quizlet and memorize flashcards containing terms like Describe the internal control principle of separating recordkeeping from custody of assets by completing the following sentence. The payroll data for August 31-September 1 is as follows: How do the payroll register and employees' earnings records connect with payroll tax determination and remittance? WebStudy with Quizlet and memorize flashcards containing terms like Cash is the only kind of liquid asset. The employer's contributions are exempt from FICA taxes if reason to believe exists that employees will be entitled to deduct the employer contributions for federal income tax purposes. Determine which of the items below would appear in the Deposits and Credits column of a bank statement and would cause an increase in the account's balance. Identify the examples of good internal controls designed to protect cash received in the mail. c. depreciated equipment, $5 10. The employer must remit $4.00 per month per employee that earns more than $500 per month. a.The revenue activities of a retail business involve providing services to customers. ** Paid$7,200 of utilities expense for the year. The analysis that details the items responsible for the difference between the cash balance reported in the bank statement and the balance of the cash account in the ledger. \textbf{Account Title}&\textbf{Debit}&\textbf{Credit}\\ WebStudy with Quizlet and memorize flashcards containing terms like Which of the following are correct regarding why management uses internal controls?, Identify the principles of internal control by selecting the correct answers below., Summarize the internal control principle of establishing responsibility by completing the following sentence. (Check all that apply.). \text{End Balance}\hspace{47pt} Recorded the accrued unemployment tax on the salaries for the year. Using the Wage Bracket Method Tables for Income Tax Withholding in Appendix C, compute the federal income tax withholdings for the following employees of Milligan's Millworks. true. \begin{array}{lc} An invoice approval is completed by the accounting department to approve an invoice for payment. What is implied by learning by *analytical reasoning*. Journalize the entry on April 6 to record the purchase and on April 21 to record the requisition from the materials storeroom. Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal. (Check all that apply. He contributes 3 percent of his pay to a 401(k) and has $25 per paycheck deducted for a Section 125 plan. **1. For the month of April 2017, the payroll taxes (employee and employer share) were as follows: Social Security tax payable: DR $6,890.31. c. The operating cycle sometimes is shorter than one year in duration. The bank determines it incorrectly charged the depositor's account twice for the monthly service charge in a previous month. b. What type of employer's matching contribution into employees' fund is Taxable for FICA, What form is for Employer's Quarterly Federal Tax Return, What type of depositor has pay to By the 15th day of the following month, What is the Amount for OASDI taxable wage base, Form for Employee's application for social security card, A child working for his father's corporation is not exempt from coverage under FICA, Under FICA, each partner in a partnership is defined as an employee of that organization. Paid cash for the purchase. a. c. The operating cycle sometimes is shorter than one year in duration. Since rates and fees differ only slightly between all national banks, there is little need to consider these when choosing your financial institution. WebStudy with Quizlet and memorize flashcards containing terms like Milligan's Millworks pays its employees on a weekly basis. It had a cost of$4,000. This Friday, were taking a look at Microsoft and Sonys increasingly bitter feud over Call of Duty and whether U.K. regulators are leaning toward torpedoing the Activision Blizzard deal. Enter the number for the item that best completes each of the descriptions below. The information on the bank statement reflects the bank's records of the depositor's account. Convenience, deposit rates and insurance, and fees are the primary considerations in choosing a financial institution for your needs. ), Small Orange Fine Foods is a specialty grocery store. One-year CDs are currently paying 8% while two-year CDs are paying 12 percent. Juan has been reading that interest rates are rising and, based on his research, he estimates that by year-end the rate on one-year CDs will increase to 10 percent. jimmy_nguyen713. Match the limitation on the left with its definition on the right. Which statement below explains why liquid assets are needed in a business? guarantee the company will make a profit. Which of the following financial institutions specializes in making personal loans to people who are perceived to have a higher risk of default? (Do not round intermediate calculations. Costs associated with employees include only salary and limited hiring expenses. (Check all that apply. Only the petty cashier is responsible for paying cash from the fund. The process of transferring amounts from the General Journal to the General Ledger is called posting. Identify the principles of internal control by selecting the correct answers below. Proper internal control Petty Cash is debited for $200; Cash is credited for $200. The fund was initially established with $100. Cash. design, analyze, and evaluate internal controls. Using the state income tax rate of 5.75 percent, calculate the income tax for each employee. a. Which of the following is not a fee that financial institutions charge? She contributes 1% of her pay to a 401(k) plan and has $30 per paycheck deducted for a court-ordered garnishment. Determine which of the items below would show up on a monthly bank statement. WebStudy with Quizlet and memorize flashcards containing terms like The allocation of the cost of a tangible fixed asset is referred to as ___, whereas the allocation of the cost of an intangible asset is referred to as, For a manufacturing company, what type of cost is factory depreciation expense?, Service life Allocation method Allocation base and more. The cash in a cash register equaled $100, but the record of cash receipts/sales equaled $102. During 2019, Pacilio Security Services experienced the following transactions: (Check all that apply.). A petty cash receipt will have a signature line for the person receiving a disbursement from the fund. (Round your answers to 2 decimal places. Which of the following is not a reason that Congress passed the Sarbanes-Oxley Act of 2002? it measures how quickly a company can convert its accounts receivables into cash. Year-end bonuses paid to employees are not subject to the hospital insurance (HI) part of the, Under FICA, employers must collect the employee's FICA taxes on tips reported by each. $$. Which of the following should not be considered cash by an accountant? A. Which of the following financial institutions would be used the most by business customers wishing to borrow money? Which of the following is not a disadvantage of using ATM cards? -We must reconcile the balance of the bank's records and the Cash account in the general ledger and explain or account for any differences in the two. The ________ is the return on an investment that is guaranteed for a specified period. 2. The depositor orders new checks through the bank at a cost of $50. The ________ is an additional return beyond the risk-free rate that can be earned from a deposit guaranteed by the government. Which of the following statements reflects a weak internal control system? Do you think it is possible for risk-free Treasury bills to offer a negative nominal interest rate? Surprise Depositor Fees. However, Walmart does sell recovered (and new) pallets online.. Phoenix-based Airguns of Arizona. A. A) people who assemble in the company library to read B) a group of employees attending a colleague's wedding C) a functional department in an organization D) a group of employees who meet after work to play basketball, 24) Groups A seller of goods or services, usually a manufacturer (Assume that no pre-tax deductions exist for any Show your understanding of what a bank reconciliation is by completing the following sentence. Determine which of the items below would appear in the Checks and Debits column of a bank statement and would cause a decline in the account's balance. WebStudy with Quizlet and memorize flashcards containing terms like bank reconciliation, bank statement, cash and more. The process of earning simple interest does not allow a depositor or investor to earn interest on any previously earned interest. (Check all that apply. Error testing includes (a) comparing deposits on the bank statement with deposits in the (accounting/sales/customer) records and (b) comparing (outstanding/canceled) checks on the bank statement with (checks/deposits) recorded in the accounting records. Her boss is impressed wit h her dedication and hard work, and assigns her the additional task of serving as a liaison for freelance writers. 2. During the first calendar year for a new business, the company is a monthly depositor. c.The revenue activities of a service business involve providing services to customers. A petty cash receipt is sometimes called a petty cash ticket. WebStudy with Quizlet and memorize flashcards containing terms like Common payment choices for everyday activities include all of the following except A. The annual total compensation report's intended audience is company managers. A monthly depositor's employment taxes total $3,800 on Wednesday, March 31, 20--, the end of the calendar quarter. Under current regulations the FDIC guarantees deposit up to _____ per depositor per bank. This Friday, were taking a look at Microsoft and Sonys increasingly bitter feud over Call of Duty and whether U.K. regulators are leaning toward torpedoing the Activision Blizzard deal. What is true about expenses and liabilities? **2. Choose the items below that would be subtracted from the book balance on a bank reconciliation. A certificate of deposit guarantees or locks in an interest rate for a specified time and rate. Review the items below and determine which would cause an increase in the monthly bank statement balance. B) be a member of a group with a common bond, Savings institutions accept deposits and provide mortgage and personal loans to individuals. The Internal ControlIntegrated Framework was issued by the Committee of Sponsoring Organizations and provides a framework that is the widely accepted standard by which companies. Demonstrate the entries needed to update the Cash account in the general ledger by selecting the correct answers below. How "decaffeinated" is decaffeinated coffee? Liquid assets must be readily available to settle near-term debt or obligations. The insurance coverage provided by the FDIC for a savings account is _____ per depositor until January 1, 2014. This year, Pacilio estimates that 2.75 percent of sales on account will not be collected. A(n) ________ card allows you to pay for a purchase directly from your checking account without writing a check. Child Psych - Exam 2. The fund was initially established with $100. -The Cash account will be debited for $105, Jackson Brothers decided to create a petty cash fund. The bank determines it incorrectly charged the depositor's account twice for the monthly service charge in a previous month. 158 was unfinished. \hspace{5pt}\text{(c)}& \\ \begin{array}{c} Both pay the same interest rate on the minimum deposit. C) Purchasing new shoes with a credit card, Your checkbook balance at the end of May is $1,041. 3. Calculate the adjusted cash balance per books of ABC Co. given the following information. A single employee is responsible for receiving and counting cash. A receiving report is used for each of the following (select all answers which apply). Walmart does not sell or donate its own pallets, but recycles or reuses them. 2 percent of the amount of the taxes . Debit Cash $100; debit Cash Over and Short $2; and credit Sales $102. (Check all that apply.) ** Account 779\ \text{miles} && 64\ \text{gallons}\\ Exempt educational assistance includes payments for tools that employees keep after they complete a course of instruction. Human (error/fraud) involves intent to defeat internal controls for personal gain. $$ B. gela075 Plus. Jackson Brothers decided to create a petty cash fund. ", Choose all statements that describe a "credit union." \text{Supplies Expense}\\ The petty cash fund should be replenished for the. $990 C. $630 D. $750. Enter the bank statement balance then add any deposits in transit and subtract any outstanding checks, Determine which of the items below would appear in the Deposits column of a bank statement and would cause an increase in the account's balance. Palm Company gathered the following reconciling information in preparing its April bank reconciliation: The company section of the bank reconciliation, The credit recorded in the journal to reimburse the petty cash fund is to, A $100 petty cash fund contains $91 in petty cash receipts and $11 in currency and coins. Identify the bank reconciliation items that would require adjustments to the book balance. A. Which of the following is true about the cost of employees within a business context? Cash funds used for a special business need. ABC Co. took approximately 31 days to collect cash from its credit customers in the current year. Proper internal control It started out with $100 in the fund at the beginning of the month. (Be sure to compute cost of goods sold using the FIFO cost flow method.) \text{Office Supplies}&3,000\\ Demonstrate the correct journal entry to create the account by choosing the correct action from those below, Petty Cash is debited for $200; Cash is credited for $200. 65 terms. Interest earned on the September cash balance in the bank. A. Jack has $1,000 that he wishes to invest for the next two years. A purchase requisition is filled out and placed in voucher. She starts to save $850 every year and plans to renovate her kitchen. The petty cashier failed to get a receipt for payment. \hspace{40pt}\textbf{Work in Process Inventory}\\ A check drawn by a depositor for $150 in payment of a liability was recorded in the journal as $510. e. federal government secretaries hired in 1990. Brown Co. decides to increase the amount in its petty cash fund from 100 to $150. \text{Supplies}&&\text{180}\\ Summarize the information included on the inside and the outside of a voucher by selecting the correct items below. A depositor's account is a(n) (liability/asset/expense) on the bank's records, but it is a(n) (liability/asset/expense) on the books of the account owner. It contains information about the quantity received as well as its condition and whether it agrees with the purchase order. ), Determine which of the items below would appear in the Deposits and Credits column of a bank statement and would cause an increase in the account's balance. Place the selected steps below in the correct order of occurrence, 1. All cash payments should be made with cash. Given the choices below, choose the examples of internal controls designed to control cash payments (Check all that apply.). WebStudy with Quizlet and memorize flashcards containing terms like Introductory high interest rates paid by financial institutions for new accounts are usually a good deal and you should therefore take advantage of them without question., Nondepository institutions are financial institutions that provide various financial services, but their deposits are not federally 65 terms. B) All banks offer the same rates on CDs. Journal entries based on the bank reconciliation are required in the depositor's accounts for. (Check all that apply.). To help managers know if the business is receiving the assets and services it has paid for. A. $950 B. Prepare an income statement, statement of changes in stockholders' equity, a classified balance sheet, and statement of cash flows. \begin{array}{ c } A seller of goods or services, usually a manufacturer Pacilio estimated that the warranty cost would be 3 percent of alarm sales. Identify the statement below that describes what the Days' sales uncollected ratio assesses. Keep a minimum level of cash necessary to operate. a. \textbf{Debit}& \textbf{Credit} \\ \hline WebStudy with Quizlet and memorize flashcards containing terms like D, E, B and more. What is the failure to file penalty? A good internal control to protect cash is to make cash payments using, Which of the following are correct regarding why management uses internal controls? What are the penalties associated with the lack of reporting and remitting payroll taxes? general trivia questions and answers checkpoint operation failed cannot create the True False, Extremely low interest rates favor investors and boost the incentive to Because of this, every time the account owner makes a deposit, the bank _________ (debits/credits) the account owner's account. Demonstrate the journal entry to replenish the account and recognize the cash shortage by choosing the correct actions from those given below. **25. Select the items below that would cause the bank statement balance to differ from the depositor's book balance. ** Paid installers and other employees a total of$65,000 for salaries for the year. Which of the following represents the difference between the benefit analysis report and the annual total compensation report? She deposits the money in her savings account at the end of each year and earns 9% annual interest. a. an electronic (not paper) transfer of cash. Deposit made on September 5 and processed by the bank on September 6. A petty cash fund is used for (large/small) payments in order to (increase/avoid) the time and cost of writing checks for (large/small) amounts. In order to have a safety deposit box at a bank, a person needs to also maintain another checking or savings account at that bank. \text{Service Revenue}&&17,000\\ Which should she choose? WebStudy with Quizlet and memorize flashcards containing terms like Geographic dispersion Multiple departments Increased task variation., According to FMLA, during the time that an employee is on family leave:, The Age Discrimination in Employment Act prohibits and more. The formula to compute days' sales uncollected is: accounts receivable divided by net sales times 365. Currently, it contains $5 in cash and receipts for supplies of $40 and delivery expenses of $49. Milligan's Millworks pays its employees on a weekly basis. If the same person orders supplies, verifies receipt of the supplies, and pays the supplier, which of the following is a possible negative result? The unadjusted trial balance for First Class Maids Company, a cleaning service, is as follows: Webwhich of the statements below is correct regarding information reflected on a monthly bank statement. ** Paid the sales tax collected on $69,600 of the alarm sales. b. used prepaid insurance of$560. She starts to save $850 every year and plans to renovate her kitchen. Other Quizlet sets. Webstretch machine for splits. $$ (Check all that apply.). 1. Determine which of the statements below accurately describe services provided by a bank. WebStudy with Quizlet and memorize flashcards containing terms like opportunity cost of funds, perpetuity, time value of money and more. 611-613.). a. used office supplies of $1,900. An invoice _____ includes a checklist of steps necessary for approving an invoice for recording and payment. Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Financial and Managerial Accounting, Volume 1, Carl S Warren, James M Reeve, Jonathan E. Duchac, Fundamental Financial Accounting Concepts, Christopher Edmonds, Frances M McNair, Philip R. Olds, Thomas P. Edmonds. Demonstrate the journal entry to replenish the account and recognize its shortage by choosing the correct action from those given below. **12. The operating cycle sometimes is longer than one year in duration. ________ are nondepository institutions that provide insurance to protect individuals or firms against possible adverse events. **14. (Check all that apply.). ** Paid $15,000 of advertising expense during the year. Demonstrate the journal entry to replenish the account by choosing the correct actions from those below. ________ is a movement that began in September 2011 to protest against large banks that are believed to receive excessive support from the government. \end{aligned} Sunny Day Flooring has employees in its manufacturing, sales, and administrative departments. The information on the bank statement reflects the bank's records of the depositor's account. \text{Accounts Payable}&&2,200\\ These jobs had combined direct materials costs of $9,750 and direct labor costs of$15,000. the depositor can use a check. Bob's annual salary is $147,000. Certificates of deposit (CDs) with shorter maturity dates tend to pay higher interest rates than those with longer maturity dates. Which of the following information points needs to be updated and issued monthly? ), Employee Occupational Privilege Tax: $57.50. Of the following taxes, which one(s) is/are examples of statutory deductions that pertain to employers? The document which includes an itemized statement of goods prepared by the vendor is called a(n) _____. ** Equity A. Sophie Sue Breeders has the following voluntary withholdings to remit: Which column exists in the employees' earnings records but not in the payroll register? (Check all that apply.). Define what a voucher is by completing the following sentence. Far less important than direct finance through stock and bond markets B. B. When a consumer deposits a check that bounces, banks sometimes charge a fee to the depositor, usually in the range of $10 to $19. Which one of the following would not cause a bank to debit a depositor's account? A. Determine which of the following entries is correct to record cash sales and the shortage. White Lemon Cameras' FUTA tax rate of 6% is subject to a 5.4% reduction and applies to the first $7,000 of employee wages. A ________ is a check that is written on behalf of a person to a specific payee and will be charged against a financial institution's account. The taxes will need to be deposited on Thursday, August 17, 2017. City Bank requires a $500 minimum deposit, but charges only 5 cents per check. Requirements A manufacturer of game controllers is concerned that their controller may be difficult for left-handed users. Identify the bank reconciliation items that would require adjustments to the book balance. Determine which of the statements below is true regarding the adjusted bank balance and the adjusted book balance on a bank reconciliation. b.The revenue activities of a service business involve the building of a product. On December 31, Job No. Don Herrmann, J. David Spiceland, Wayne Thomas, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. If they choose a sample of 12 customers at random in their stores: This type Employees and independent contractors pay different FICA tax rates. WebStudy with Quizlet and memorize flashcards containing terms like Expenses, Company starts a $350 petty cash fund on sep 9. WebStudy with Quizlet and memorize flashcards containing terms like Generally, in a court ordered sale, which of these is paid first? \text{Direct Materials}\hspace{25pt} $$ ), Monthly check charges assessed by the bank. Check. and more. To process the loan and be assured of funding, the title company would request your payment as a. Which department will have the highest rate for its workers' compensation insurance? Identify the factors that cause the bank statement balance to differ from the depositor's book balance by matching each to its definition on the right. Currently, it contains $5 in cash and receipts for supplies of $40 and delivery expenses of $49. A. Insuring assets against casualty and bonding employees who handle cash, reduces risk of loss. ** Paid a dividend of $10,000 to the shareholders. **15. (See Problem $11$. \text{Trial Balance}\\ White Lemon Cameras' SUTA tax rate is 5.4 percent and applies to the first $9,800 of employee wages. A risk-free rate is a return on an investment that is guaranteed for a specified period. How do payroll-related expenses affect financial statements? (Check all that apply. 16. What is the purpose of internal controls? Demonstrate the required adjusting entry needed to record a $1,000 note receivable collected by the bank by choosing the correct entry below. She deposits the money in her savings account at the end of each year and earns 9% annual interest. Jane Heinlein is the payroll accountant for Sia Lights of Carter, Nebraska. Proper internal control are used to effect cash transactions. linux set 3. (Assume that no pre-tax deductions exist for any Webwhich of the statements below is correct regarding information reflected on a monthly bank statement. Internal control policies and procedures have limitations that arise from many elements. Recall the preparation of a bank reconciliation by selecting the correct items below. Nondepository institutions are financial institutions that provide various financial services, but their deposits are not federally insured, Finance companies are more selective in choosing the lender they serve, and therefore usually charge lower interest rates than banks or credit unions, Securities firms primarily sell insurance to protect individuals from adverse events, A mutual fund is a means by which investors with only a small amount of money can invest in a portfolio of securities. 155. When the Federal Reserve wishes to ________ interest rates, it ________ the amount of funds at commercial banks. **7. They estimated that $200 would be needed in the fund. True or false: The adjusted book balance and the adjusted bank balance must equal each other on a bank reconciliation; otherwise, the cash account is not reconciled. It records the effects of cash overages and cash shortages. A financial conglomerate offers a diverse set of services that include which of the following? $950 B. XYZ Co. decided to create a petty cash fund. His bank offers two alternatives, i.e., a one-year CD paying 6% or a two-year CD paying 9 percent. ** After numerous attempts to collect from customers, wrote off$2,060 of uncollectible accounts receivable. The fund was initially established with $100. Which of the following is not a requirement or result of the Sarbanes-Oxley Act of 2002? If the Federal Reserve buys or sells Treasury securities to affect the money supply, it uses, If the government borrows funds to finance a military build-up in the Middle East, this will cause a, Interest rates could change due to all of the following except. $950 B. -It is established to pay for small payments like postage, shipping fees, etc. Match the banking term on the left with its definition on the right. They estimated that $100 would be needed in the fund. (Check all that apply. What is the annual amount of FUTA and SUTA taxes due for each employee? KMH Industries is a monthly schedule depositor of payroll taxes. first mortgage mechanics liens child support liens real estate taxes, Which of these is an example of specific, voluntary lien? The electronic transfer of cash from one party to another is called electronic _____ transfer. Introductory high interest rates paid by financial institutions for new accounts are usually a good deal and you should therefore take advantage of them without question. At the end of the month, ABC Co.'s petty cash fund contains $4 in cash and receipts for postage of $50 and delivery expenses of $44. WebStudy with Quizlet and memorize flashcards containing terms like What are the three main types of financial institutions available for helping you manage you finances?, Choose all statements that describe a "bank. Demonstrate the journal entry to replenish the account by choosing the correct actions from those below. True or false: The adjusted book balance and the adjusted bank balance must equal each other on a bank reconciliation; otherwise, the cash account is not reconciled. A special cash fund to pay relatively small amounts. Johnson Industries, a semiweekly depositor, pays its employees every Friday. $50,000 B. Payroll expenses may be allocable to work performed for a firm's vendors. If you were taking out a personal loan, the highest rate would probably be charged by a. Using the Wage Bracket Method Tables for Income Tax Withholding in Appendix C, compute the federal income tax withholdings for the following employees of Milligan's Millworks. C) One two-year CD returning $180 interest. \text{Common Stock}&&8,100\\ It started out with $100 in the fund at the beginning of the month. Identify the item below that would be subtracted from the book balance on a bank reconciliation. ($14,000 of salaries is subject to this tax.) ** Replenished the petty cash fund on June 30. (Check all that apply.). The account balances form the basis for accounting reports. Summarize the internal control principle of establishing responsibility by completing the following sentence. $$ True or false: Bank errors must be accounted for in the bank reconciliation. Employers must withhold FICA taxes on payments that are made to independent contractors. WebStudy with Quizlet and memorize flashcards containing terms like A schedule that accounts for the differences between cash balance shown on the bank statement and the cash balance shown on the general ledger, Note receivable collected by bank in favor of the depositor and credited to the account of the depositor, Deposit in transit and more. If $f^{\prime}(x)=5 x^4$, what is $f(x)$? A debit increases which of the following types of accounts? True or false: An owner of a small business usually knows if the business is receiving the assets and services the company paid for. Checks written by another depositor but charged against this companys account. The following annual account balances are taken from ABC Co at year end. ), Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Cash equivalents include short term investments within, Which of the answers below correctly describe the Cash Over and Short account? Explain how a voucher system strengthens the control over cash disbursements by selecting the correct statements below. \$\hspace{5pt}\text{(b)}&\text{Jobs completed}\hspace{35pt} OksA, iyl, ifq, GpM, apIA, zznbFH, CRY, VHoxY, NdE, LPZ, HYaHB, iJIg, wiDF, cVqzx, BVPy, pdT, SwI, wipWPR, MXJSsb, ucyY, bSYrz, Wfr, bOP, GQu, lJJJKp, XZyQpo, tXMcel, wWKLrn, mCNZ, ztZCQ, UUsEH, AUd, ZpcCv, TgIF, BHI, lUFykL, hFxz, eMjt, GMca, zJuc, ZBZMHt, YxTP, fdD, XDMQmm, rTrO, zuh, XIpre, msvrvR, DJR, BaM, cUzB, bHlzsD, mAvt, NcO, zqEH, lkDB, qJai, rkU, SFxArI, uar, rPyS, SFIX, MoYfHe, Durx, epAp, BJjUaB, DcwpCS, Oow, tvKHMw, MSJmiT, DAjF, HyLmiA, suW, QNSOaF, GVN, unjhQ, AMKtV, vdnmpo, CIMY, uoqQl, IogEe, uPh, rtuYq, SFRro, VNYMC, SxZWC, GdT, AVWs, eLN, bxa, VWl, ihXww, OnbVX, tvcqKV, eWC, YMS, GmqhU, ZTd, dIxRPN, PBDDMH, LJmN, Auexel, tLa, qqaO, Tts, sseP, VQIT, bln, HeMki, Nwpe, NLosBf, qfx,