General Accounting Final Exam

Front

If an employee's regular hourly rate is $9 and the overtime rate is 1.5 times the regular rate, what is the gross pay for 42 hours of work in one week?

Back

$387

Front

Purpose of the Medicare Tax

Back

To provide medical care for the employee and the employee’s spouse after they reach age 65.

Front

An individual paid by the company to carry out a specific task or job but not under direct supervision

Back

Independent contractor

Front

In a business it is important to maintain control of cash payments. What are some internal cash payment controls.

Back

• - make all payments by check

• - issues checks only with an approved document

• - have only designated employees approve invoices

• - have checks recorded by someone other than the person who approves payment

• - have another person sign and mail checks

• - during reconciliation, compare canceled checks with records

• - enter all cash payment transactions quickly

• - use pre-numbered check forms

Front

A written promise to pay a specified amount of money on a certain date

Back

Promissory note

Front

Necessary action to arrive at the accurate balance on a bank reconciliation statement

Back

Deduct outstanding checks from the company’s bank statement balance

Front

The process of determining why a difference exists between a firm’s records and the bank’s records

Back

Reconciling the bank statement

Front

Amount over or short if the cash sales per the register tape were $4,200 and the cash count was $4,390

Back

$40 over

Front

Accounts that normally have a debit balance

Back

Payroll Tax Expense, Salaries Expense, Workers' Compensation Insurance Expense

Front

Who pays Social Security taxes

Back

Both the employee and employer