Explain the end product of a bank reconciliation.
> Explain the difference between merchandise and equipment.
> Explain how net purchases is calculated.
> When is a (✓) used?
> Why is the accounts receivable subsidiary ledger organized in alphabetical order?
> Compare and contrast the Controlling Account—Accounts Receivable to the accounts receivable subsidiary ledger.
> What category is Sales Discount in?
> Paul Kloss, accountant for Lowe & Co., traveled to New York on company business. His total expenses came to $350. Paul felt that because the trip extended over the weekend he would “pad” his expense account with an additional $100 of expenses. After all,
> Explain the terms: a. 2/10, n/30 b. n/10, EOM
> Give two examples of contra-revenue accounts.
> What is the normal balance of Sales Discount?
> When a seller issues a credit memorandum (assume no sales tax), what accounts will be affected?
> Sales discounts are taken on sales tax. Agree or disagree? Explain why.
> Why is sales tax a liability to the business?
> What is an invoice? What purpose does it serve?
> Explain the purpose of a contra-revenue account.
> Bill Smith leaves his job on July 9. He requests a copy of his W-2 form when he leaves. His boss tells him to wait until January of next year. Please discuss whether Bill’s boss is correct in making this statement.
> Under what circumstance(s) does the amount on line 14 of Form 941 match the amount found on line 10?
> Pete Rose, the accountant of Rich Co., would like to buy a new software package for his general ledger. He couldn’t do it because all funds were frozen for the rest of the fiscal period. Pete called his friend at Flynn Industries and asked whether he cou
> How often is Form 941 completed?
> How is an employer classified as a monthly or semiweekly depositor for Form 941 tax purposes?
> What is a look-back period?
> What account is debited when recording the distribution of the payroll checks to the employees?
> How do you transfer money into the payroll cash account?
> Discuss ways an employer can prepare and submit forms W-2 and W-3 online.
> Who completes Form W-2? Form W-3? When is each form completed?
> Employer B has a FUTA tax liability of $553.24 on January 31 of the current year. When does the employer have to make the deposit for this liability?
> Why would one employer prepare a Form 940 completing Part 1, line 1a, but another would prepare a Form 940 Part 1, line 1b?
> Why might a company have a separate cash account for payroll?
> What purpose does the individual employee earnings record serve?
> Explain how to calculate OASDI and Medicare taxes.
> Define and state the purpose of FICA taxes.
> The taxable earnings column of a payroll register records the amount of tax due. Agree or disagree?
> Explain why a business should prepare a payroll register before employees are paid.
> Explain how federal and state income tax withholdings are determined.
> The more allowances an employee claims on a W-4 form, the more take-home pay the employee gets with each paycheck. Agree or disagree?
> Explain how a W-4 form, called the Employee’s Withholding Allowance Certificate, is used to determine Federal Income Tax (FIT) withheld.
> An employer must always use a calendar year for payroll purposes. Agree or disagree and explain your answer.
> Explain how to calculate overtime pay.
> What is a calendar year?
> Burton Fish is the purchasing agent for Lyle Co. One of his suppliers, Grant Co., offers Burton a free vacation to Spain if he buys at least 50% of Lyle’s supplies from Grant Co. Burton, who is angry because Lyle Co. has not given him a raise in over a y
> What taxes are recorded when recording Payroll Tax Expense?
> An employee for Repairs to Go, Inc., works different numbers of hours each week depending on the needs of the business. To simplify the accounting, the bookkeeper for Repairs to Go classifies this employee as a salaried person. Is this practice appropria
> Who pays workers’ compensation insurance, the employee or the employer? What types of benefits does this insurance provide? How are premiums calculated?
> Explain what an experience or merit rating is and how it affects the amount paid by an employer for state unemployment insurance.
> Explain how an employer can receive a credit against the FUTA tax due.
> The employer doesn’t have to contribute to FICA. Agree or disagree? Please explain.
> What is the purpose of the Fair Labor Standards Act (also called the Federal Wage and Hour Law)?
> An NSF check results in a bank issuing the depositor a credit memorandum. Agree or disagree? Please explain your response.
> Why are outstanding checks subtracted from the bank balance?
> Meg Ryan, the bookkeeper of Logan Co., was scheduled to leave on a three week vacation at 5:00 on Friday. She couldn’t get the company’s trial balance to balance. At 4:30, she decided to put in fictitious figures in her computer to make it balance. Meg t
> A bank statement is sent twice a month. True or false? Please explain.
> Why should check stubs be filled out first, before the check itself is written?
> Explain the difference between payee, drawer, and drawee.
> Explain the difference between a blank endorsement and a restrictive endorsement.
> What is the advantage of having preprinted deposit slips?
> Explain how Cash Short and Over can be a miscellaneous expense.
> Explain the purpose of a change fund.
> At the time of replenishment, why are the totals of individual expenses debited?
> Explain the relationship of the auxiliary petty cash record to the recording of the cash payment.
> Petty cash is a liability. Agree or disagree? Explain.
> How does one calculate Paid-In Capital in Excess of Par Value or Stated Value?
> What is meant by check truncation or safekeeping?
> What are the major advantages and disadvantages of online banking?
> What is EFT?
> Why do adjustments to the checkbook balance in the reconciliation process need to be journalized?
> Discuss how smartphone apps are making banking more mobile.
> What accounts are usually listed on a post-closing trial balance?
> How can a worksheet aid the closing process?
> What is the purpose of Income Summary and where is it located?
> List the four steps of closing.
> How has computer software affected use of closing entries?
> Explain the steps of closing for a merchandise company.
> What is the difference between temporary and permanent accounts?
> “Closing slows down the recording of next year’s transactions.” Defend or reject this statement with supporting evidence.
> Why must adjusting entries be journalized even though the formal statements have already been prepared?
> Closing entries are always prepared once a month. Agree or disagree? Why?
> When a worksheet is completed, what balances are found in the general ledger?
> Why don’t the formal financial statements contain debit or credit columns?
> Define the term accrued salaries.
> Each month Accumulated Depreciation grows while Equipment goes up. Agree or disagree? Defend your position.
> Depreciation expense goes on the balance sheet. True or false. Why?
> Why do we need the Accumulated Depreciation account?
> Explain why figures for beginning and ending inventory are not combined on the Income Summary line of the worksheet.
> Explain how an adjustment can affect both the income statement and balance sheet. Please give an example.
> What is the relationship of internal transactions to the adjusting process?
> What is the purpose of adjusting accounts?
> Alice Hawkins, president of Realon Co., went to a conference on tax planning. One of the speakers at the seminar advised the audience to put off showing expenses until next year because doing so would allow them to take advantage of a new tax law. When A
> Explain how the financial statements are prepared from the worksheet.
> With computer software, the need for worksheets has been completely eliminated. Agree or disagree and explain your answer.
> Posting means updating the journal. Agree or disagree? Please comment.
> What is a compound journal entry?
> What is the relationship of the chart of accounts to the general journal?
> How do transactions get “linked” in a general journal?
> Jim Heary is the custodian of petty cash. Jim, who is short of personal cash, decided to pay his home electrical and phone bills from petty cash. He plans to pay it back next month. Do you feel Jim should do so? You make the call. Write down your specifi
> With computers today, ledgers are not needed in today’s accounting system. Agree or disagree and defend your position.
> What are interim statements?
> Compare and contrast a calendar year versus a fiscal year.
> An accounting period is based on the balance sheet. Agree or disagree and defend your position.
> What is the difference between a transposition and a slide?
> Discuss the concept of cross-referencing.
