BF20 ACCOUNTING FUNDAMENTALS 2 Part 1 Fill in the blanks. Write your answers next to the item number. Choose your answers from the box below . 1 A $11,000, 10 percent, one-year note payable was issued on July 31. The balance sheet at December 31 will report interest payable of: (Use 365 days per year when calculating interest accruals and expense.) 2 Which of these liabilities creates no expense for the company - Interest, Warranty, Sales Tax or E.I.? 3 Gross pay plus employer payroll contributions and fringe benefits is the total _________ expense of the employer 4 CPP and EI represents a _____ to the employer 5 Give the main reason for using a separate payroll bank account. 6 Give the best step in ensuring good internal control in the payroll area, 7 Give the function of a credit department. 8 Give the internal control feature that is specific to petty cash. 9 Cash receipts and cash payments is controlled by what device? 10 Whose function is to give opinion on the fair presentation of the financial statements? 11 Give one objective of the internal control. 12 Whose accounts can be individually identified in the accounts receivable subsidiary ledger? 13 The design of an accounting systems begins with the_______. 14 Every transaction recorded in the cash receipts journal includes a debit or a credit to cash? Write either DR or CR. 15 Every transaction recorded in the cash payments journal includes a debit or a credit to cash? Write either DR or CR. Choices: Auditors Debtors Cost Maintaining reliable control systems. Payroll Chart of Accounts Safeguarding assets $461.10 Preventing and detecting fraud and errors. Imprest System Bank Account Increase efficiency by isolating payroll disbursements for analysis and control Sales Tax Separating payroll duties Evaluate customers who apply for credit