1. Most employers are required to withhold from employees for a. both federal an
ID: 2368372 • Letter: 1
Question
1. Most employers are required to withhold from employees fora.
both federal and state unemployment compensation
b.
only federal unemployment compensation tax
c.
only federal income tax
d.
only state unemployment compensation tax
2. Which one of the following below is not an element of internal control?
a.
risk assessment
b.
monitoring
c.
information and communication
d.
behavior analysis
3. The objectives of internal control are to
a.
control the internal organization of the accounting department personnel and equipment
b.
provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with
c.
prevent fraud, and promote the social interest of the company
d.
provide control over "internal-use only" reports and employee internal conduct
4. Which one of the following below reflects a weak internal control system?
a.
all employees are well supervised
b.
a single employee is responsible for comparing a receiving report to an invoice
c.
all employees must take their vacations
d.
a single employee is responsible for collecting and recording of cash
5. An element of internal control is
a.
risk assessment
b.
journals
c.
subsidiary ledgers
d.
controlling accounts
6. A check drawn by a company for $270 in payment of a liability was recorded in the journal as $720. This item would be included on the bank reconciliation as a(n)
a.
addition to the balance per the company's records
b.
addition to the balance per the bank statement
c.
deduction from the balance per the bank statement
d.
deduction from the balance per the company's records
7. Which of the following below is an example of a capital expenditure?
a.
cleaning the carpet in the front room
b.
tune-up for a company truck
c.
replacing an engine in a company car
d.
replacing all burned-out light bulbs in the factory
8. The journal entry for recording an operating lease payment would
a.
be a memo entry only
b.
debit the fixed asset and credit Cash
c.
debit an expense and credit Cash
d.
debit a liability and credit Cash
9. All of the following below are needed for the calculation of straight-line depreciation except
a.
cost
b.
residual value
c.
estimated life
d.
units produced
10. The depreciation method that does not use residual value in calculating the first year's depreciation expense is
a.
straight-line
b.
units-of-production
c.
double-declining-balance
d.
none of the above
11. When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry
a.
debit Accumulated Depreciation; credit Machinery
b.
debit Machinery; credit Accumulated Depreciation
c.
debit Cash; credit Accumulated Depreciation
d.
debit Depreciation Expense; credit Accumulated Depreciation
Explanation / Answer
1)a 2)d 3)c 4)b 5)a 6)a 7)c 8)c 9)b 10)c 11)a
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