True or False

1. In a business with a strong internal control system, cash will be deposited often.

2. Deposits that have been added to the bank balance but not the checkbook balance are called deposits in transit.

3. The threshold for the social security tax is the same as that for the medicare tax.

4. The net amount of an employee's wages is recorded in the journal as a credit to cash.

5. A computerized accounting system is typically both cost effective and efficient for business accounting.

6. Benefits of a computerized accounting system include that it requires no employee training and needs few if any safeguards for data protection.