General Accounting Final Exam

What Form 940 reports

• FUTA taxes

• State income taxes

• Social Security taxes

• Medicare taxes

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

• Promissory note

• Loan agreement

• Credit note

• Invoice

Adjusted book balance with a book balance of $15,740, an NSF check of $460, and a service charge of $16

• $15,364

• $15,500

• $15,200

• $15,600

Person or firm that issues a check

• Drawer of the check

• Payee of the check

• Endorser of the check

• Bouncer of the check

Insurance for job-related injuries

• Health insurance

• Life insurance

• Workers’ compensation

• Disability insurance

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

• $40 over

• $190 over

• $50 short

• $100 over

Overtime rate for employees engaged in interstate commerce.

• Must receive an overtime rate of at least 1.5 times the regular hourly rate for time worked in excess of 40 hours per week.

• Must receive an overtime rate of at least 1.25 times the regular hourly rate for all hours worked.

• Must receive an overtime rate equal to the regular hourly rate for time worked in excess of 40 hours per week.

• Must receive an overtime rate of at least 2 times the regular hourly rate for time worked in excess of 50 hours per week.

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

• Employee

• Independent contractor

• Intern

• Freelancer

Purpose of the Medicare Tax

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

• To fund retirement benefits for employees after they reach age 65.

• To cover unemployment benefits for workers who lose their jobs.

• To provide health insurance for children under the age of 18.

Amount debited to Wages Expense when a payroll is recorded

• Total gross earnings

• Net earnings after deductions

• Total hours worked multiplied by hourly rate

• Total bonuses and incentives