Basic Bookkeeping-8

A time card is a record often used to record the time an employee works.
1. True
2. False
One factor affecting the amount of income tax withheld from an employee's earnings is his or her age.
1. True
2. False
An employer must match and pay to the IRS the amout of income tax withheld from the earnings of employees.
1. True
2. False
Most employers are required to pay state and federal unemployment taxes.
1. True
2. False
Form 941 will show the number of exemptions an employee is claiming for income tax withholding purposes.
1. True
2. False
The amount withheld from employee earnings for social security, medicare, and income taxes is reported annually to the IRS using form 941.
1. True
2. False
The cost recorded for plant or equipment includes all the costs necessary to make the asset ready for use.
1. True
2. False
The unit of production depreciation method is based on the asset's usage.
1. True
2. False
Recording depreciation expense for a period is an example of an adjusting entry.
1. True
2. False
A delivery truck is an example of an intangible asset.
1. True
2. False
Each revenue account after closing must begin the new period with -
1. a zero balance
2. a debit balance
3. a credit balance
4. a debit or credit balance depending on the account
An entry to write off an accounts receivable account is recorded in
1. the general journal
2. the cash disbursements journal
3. the bad debt journal
4. the sales journal
Book value of a plant asset is -
1. original cost less accumulated depreciation
2. original cost less salvage value
3. appraised value less accumulated depreciation
4. original cost plus accumulated depreciation
Using the cost of the inventory purchased last to calculate the cost of the items sold first is
1. the LIFO method
2. the FIFO method
3. the Average Cost method
4. the Rolling Stock method
Using the same inventory costing method each period is an application of -
1. the consistency concept
2. the going concern concept
3. the revenue realization concept
4. the matching concept
An amount paid for the use of borrowed money over time is called -
1. interest
2. principal
3. loan origination fee
4. interest rate
Current assets less current liabilities is referred to as -
1. working capital
2. net assets
3. current ratio
4. liquidity ratio
Which of the following is the least "liquid"asset ?
1. Equipment
2. Cash
3. Accounts Receivable
4. Inventory
A net loss for a corporation -
1. decreases retained earnings
2. increases retained earnings
3. increases capital stock
4. decreases capital stock
Segregating and keeping separate records for a business apart from the owners is based on -
1. the business entity concept
2. the going concern concept
3. the double entry concept
4. none of the listed answers are correct

Basic Bookkeeping-8

Quiz