1. A form used to organize and check data before preparing financial reports is known as a(n):

a.trial balance

b.income statement

c.balance sheet

d.worksheet

2. Equipment with a cost of $150,000 has an accumulated depreciation of $100,000. What is the historical cost of the equipment?

a.$150,000

b.$50,000

c.$200,000

d.$100,000

4. The adjusted trial balance columns:

a.help to ensure the ledger is still in balance

b.help to identify any errors that may have been made during adjustment

c.show updated account balances to aid in preparation of the financial statements

d.All of the above.

6. On a worksheet, the income statement debit column totals $10,200 and the credit columntotals $10,000. Which of the following statements is correct?

a.The company had a net loss of $200.

b.The company had a net income of $200.

c.The company's revenues were greater than expenses.

d.None of the above are correct.

8. Accounts in which the balances are carried over from one accounting period to the next arecalled:

a.real accounts

b.nominal accounts

c.temporary accounts

d.zero accounts

14. Internal control over a company's assets should include the following policy:

a.responsibilities and duties of employees will be divided

b.all cash receipts will be deposited into the bank the same day they arrive

c.all cash payments will be made by check (except petty cash)

d.All of the above.

15. Company policy for internal control should include all of the following except:

a.employees will be rotated

b.monthly bank statements should be sent to and reconciled by the same employeeswho authorize payments and write checks

c.the owner (or responsible employee) signs all checks after receiving authorization to pay from the departments concerned

d.at time of payment, all supporting invoices or documents will be stamped "paid"

16. If the written amount on the check does not match the amount expressed in figures, the bankmay:

a.pay the amount written in words

b.return the check unpaid

c.contact the drawer to see what was meant

d.All of the above.

17. The bank would issue a credit memorandum to Maria's Life Management when the bank:

a.received the deposits in transit

b.collects a note receivable from a customer

c.discovered a check that was deposited was returned for nonsufficient funds

d.None of the above.

18. How would outstanding checks be handled when reconciling the ending cash balance per thebank statement to the correct adjusted cash balance?

a.They would be added to the balance of the bank statement.

b.They would be subtracted from the balance of the bank statement.

c.They would be added to the balance per books.

d.They would be ignored.

19. A petty cash fund is set up:

a.to pay for large expenses

b.to pay for small expenses

c.for the owner to withdraw money for personal use conveniently

d.None of the above.

20. A pay period is defined as:

a.weekly

b.bi-weekly

c.monthly

d.All of the above.

21. Gross earnings are the same as:

a.regular earnings only

b.regular earnings + overtime earnings

c.net earnings

d.net earnings + overtime earnings

22. Bob Hill's hourly rate is $25.00, and he worked 38 hours during the week. What is his grosspay for the week?

a.$950

b.$780

c.$1,000

d.$975

23. Another name for the Fair Labor Standards Act is:

a.Federal Insurance Contribution Act

b.Federal Wage and Hour Law

c.Federal Income Tax Act

d.Federal Hourly Law

24. Which of the below allowances would have the least amount of taxes withheld for federalincome tax purposes?

a.S-1

b.S-0

c.S-3

d.S-2

25. Blue's Tax Service has two types of employees: management and clerical support. Thecompany estimates that it will pay the clerical support $300,000 next year and the managers$255,000. For every $100, the company pays $0.14 into the workers' compensationinsurance. Calculate the amount of workers' compensation insurance.

a.$777

b.$336

c.$441

d.None of the above.