Merchandise is sold on account for $3,500, and the sale is subject to sales tax of $175. The sales account should be credited for

		$0
		$175
		$3,500
		$3,675

2 points

Question 2

The account that is credited for the Social Security tax withheld from the employees earnings is

		Social Security Tax Expense
		Payroll Excise Payable
		Payroll Taxes Expense
		Social Security Tax Payable

2 points

Question 3

If a customer is given an allowance for damaged goods

		Cash is debited
		Sales Returns and Allowances is debited
		Accounts Receivable is debited
		Sales is debited

2 points

Question 4

The allowance method is consistent with which of the following accounting concepts?

		Matching principle
		Historical Cost Principle
		Period Concept
		Entity Concept

2 points

Question 5

In entering transactions concerned with sales of merchandise, which of the following accounts is NOT usually needed?

		Sales
		Sales Tax Payable
		Sales Returns and Allowances
		Sales Tax Receivable

2 points

Question 6

The journal that should be used to record the return of merchandise for credit is the

		Purchases journal
		General journal
		Cash payments journal
		Accounts payable journal

2 points

Question 7

A schedule of accounts receivable is prepared from

		the list of customer accounts in the accounts receivable ledger
		the general journal
		the general ledger
		the sales journal

2 points

Question 8

The Employers Quarterly Federal Tax Return is

		Circular E
		Form W-2
		a report of federal, Social Security, and Medicare tax withholding's
		a report of each employees wages

2 points

Question 9

Which of the following accounts would be found in the purchases journal?

		Sales
		Cash
		Returns and Allowances
		Freight-In

2 points

Question 10

Under the allowance method of accounting for uncollectible accounts, the write-off of an account as uncollectible affects

		the income statement
		the balance sheet
		all of these
		none of these

2 points

Question 11

The cash payments journal does NOT include which of the following?

		the check number
		a cash debit column
		the date paid
		the amount of check

2 points

Question 12

Posting to the subsidiary journals is NOT done from the

		sales journal
		general journal
		cash receipts journal
		trial balance

2 points

Question 13

The difference between net sales and cost of goods sold is called

		goods available for sale
		net purchases
		the bottom line
		gross profit

2 points

Question 14

Workers compensation insurance provides insurance for employees who

		lose their jobs
		cannot pay their debts
		are injured on the job
		go on strike

2 points

Question 15

The Sales Discount account is a(n)

		revenue account
		contra-revenue account
		expense account
		contra-expense account

2 points

Question 16

For Income Statement reporting purposes, Freight-In is

		subtracted from cost of goods sold
		added to inventory
		subtracted from net sales
		added to purchases

2 points

Question 17

Social Security Tax Payable and Medicare Tax Payable are classified as

		owners equity
		expenses
		assets
		liabilities

2 points

Question 18

Under the direct write-off method, the account credited when an account is determined to be uncollectible is

		Bad Debt Expense
		Sales;
		Allowance for Bad Debts
		Accounts Receivable

2 points

Question 19

Assume the gross amount of an invoice is $1,000 and a trade discount of 25% is allowed. The dollar amount of the trade discount is

		$1,000
		$750
		$250
		$25

2 points

Question 20

Federal income tax that is withheld each pay period from the employees earnings is based on all of the following except

		earnings of the employee
		employees age
		number of withholding allowances
		marital status

2 points

Question 21

Net realizable value is computed as

		Sales Bad Debt Expense
		Accounts Receivable Allowance for Bad Debts
		Allowance for Bad Debts Accounts Receivable
		Accounts Receivable Bad Debt Expense

2 points

Question 22

A self-employment tax is a contribution to the

		Social Security and Medicare programs
		FUTA programs
		SUTA programs
		state government

2 points

Question 23

A journal designed for entering only sales on account is called the

		cash receipts journal
		accounts receivable journal
		sales journal
		general journal

2 points

Question 24

The difference between merchandise available for sale and the end-of- period merchandise inventory is called

		net purchases
		gross profit
		cost of goods sold
		net sales

2 points

Question 25

Assume the gross amount of an invoice is $300 and a trade discount of 15% is allowed. The net amount is

		$300
		$255
		$45
		$15