Computer Accounting With Quick Books 2015 By Donna Kay 17th Edition – Test bank A+

$35.00
Computer Accounting With Quick Books 2015 By Donna Kay 17th Edition – Test bank A+

Computer Accounting With Quick Books 2015 By Donna Kay 17th Edition – Test bank A+

$35.00
Computer Accounting With Quick Books 2015 By Donna Kay 17th Edition – Test bank A+

Each year employees are sent Form ______ to summarize gross wages and tax withholdings for the year.

A.1099

B.W-2

C.W-3

D.W-4

2.A company is required to withhold payroll taxes for:

A.Employees

B.Vendors

C.Subcontractors

D.All of these

3.All of the following automatically calculate payroll tax withholdings in QuickBooks except:

A.Basic Payroll

B.Assisted Payroll

C.Enhanced Payroll

D.All of these automatically calculate payroll tax withholdings

4.To turn on QuickBooks time tracking feature, the following steps must be completed:

A.Click QuickBooks Menu > Time Tracking

B.Click Edit > Preferences > Time and Expenses > Time Tracking

C.Click Employees > Payroll > Time Tracking

D.Click Employees > Payroll and Employees > Time Tracking

5.The order of steps to process payroll is:

A.Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms

B.Enter Time > Pay Employees > Process Payroll Forms > Print Payroll Report

C.Pay Employees > Process Payroll Forms > Pay Payroll Liabilities

D.Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Print Liabilities Report

6.In QuickBooks, time data is listed on customer invoices using the:

A.Timesheet icon

B.Pay Sales Taxes icon

C.Pay Employees button

D.Time/Costs button

7.Which one of the following is paid by both the employee and company?

A.Federal income taxes

B.State income taxes

C.FICA

D.All of these

8.Which of the following is not a payroll report?

A.Form W-2

B.Form 1065

C.Form 940

D.Form 941

9.The following are payroll liabilities except:

A.Federal income taxes

B.Unemployment taxes

C.Sales taxes

D.FICA

10.Which of the following is typically used to track time for a single activity?

A.Employee Tracker

B.Stopwatch

C.Timesheet

D.QuickTime

11.What QuickBooks activity comes next in this string of payroll activities?
Enter Time > Pay Employees > ______ > Process Payroll Forms

A.Reconcile Payroll

B.Print Payroll Report

C.Pay Payroll Liabilities

D.None of these

12.When setting up a new employee where do you get their filing status and allowances information?

A.Form W-9

B.Form W-4

C.Form W-3

D.Form W-2

13.All of the following are QuickBooks Payroll Services, except:

A.Basic

B.Assisted

C.Advanced

D.Enhanced

14.When tracking time for subcontractors, which QuickBooks window is used to enter subcontractor information?

A.Vendor List

B.Item List

C.Payroll Setup

D.Employee List

15.Which form summarizes payments made to subcontractors?

A.Form 940

B.Form 1065

C.Form 1099

D.W-4

16.The payment to a stockholder who is not an employee of the company is a:

A.Dividend

B.Paycheck

C.Vendor payment

D.None of these

17.Which of the following activities and QuickBooks window used to record it is incorrect?

A.Enter time worked; Weekly Timesheet

B.Pay payroll liabilities; Write Check

C.Enter employee information; Employee List

D.Pay payroll taxes; Pay Liabilities

18.An individual’s status determines how to record payment to that individual. Which of the following status and payment method is incorrect?

A.Vendor; Bill

B.Employee; Payroll

C.Stockholder; Dividend

D.None of these

19.To include a charge for labor on an invoice, labor as a service item must be recorded in the:

A.Item List

B.Vendor List

C.Inventory List

D.Employee List

20.The Payroll Center:

A.Contains the employee list

B.Manages payroll and tax information

C.Is where employees enter time worked

D.Is located in the Banking Center

21.Which of the following ways to track time is not supported by QuickBooks Pro and QuickBooks Premier?

A.Time Single Activity

B.Weekly Timesheet

C.Time clock

D.Online Timesheets

22.Which of the following may be billed to a specific customer job?

A.Mileage

B.Hours

C.Expenses

D.All of these

23.The Payroll Center has the following sections except:

A.Pay Employees

B.Write Checks

C.Pay Scheduled Liabilities

D.File Tax Forms

24.What is purpose of Federal Form 940?

A.Summarize the amount of unemployment tax paid and due by the company

B.Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter

C.Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year

D.Summarize of all your W-2 forms

25.What is the purpose of Federal Form 941?

A.Summarize the amount of unemployment tax paid and due by the company

B.Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter

C.Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year

D.Summarize of all your W-2 forms

26.Name 3 (three) types of payroll liabilities and indicate who funds each one.

27.Briefly describe what the “Time by Job” project reports tell management.

6 Key

1.Each year employees are sent Form ______ to summarize gross wages and tax withholdings for the year.

A.1099

B.W-2

C.W-3

D.W-4

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Kay – Chapter 06 #1

2.A company is required to withhold payroll taxes for:

A.Employees

B.Vendors

C.Subcontractors

D.All of these

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Kay – Chapter 06 #2

3.All of the following automatically calculate payroll tax withholdings in QuickBooks except:

A.Basic Payroll

B.Assisted Payroll

C.Enhanced Payroll

D.All of these automatically calculate payroll tax withholdings

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Kay – Chapter 06 #3

4.To turn on QuickBooks time tracking feature, the following steps must be completed:

A.Click QuickBooks Menu > Time Tracking

B.Click Edit > Preferences > Time and Expenses > Time Tracking

C.Click Employees > Payroll > Time Tracking

D.Click Employees > Payroll and Employees > Time Tracking

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Kay – Chapter 06 #4

5.The order of steps to process payroll is:

A.Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms

B.Enter Time > Pay Employees > Process Payroll Forms > Print Payroll Report

C.Pay Employees > Process Payroll Forms > Pay Payroll Liabilities

D.Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Print Liabilities Report

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Kay – Chapter 06 #5

6.In QuickBooks, time data is listed on customer invoices using the:

A.Timesheet icon

B.Pay Sales Taxes icon

C.Pay Employees button

D.Time/Costs button

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Kay – Chapter 06 #6

7.Which one of the following is paid by both the employee and company?

A.Federal income taxes

B.State income taxes

C.FICA

D.All of these

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Kay – Chapter 06 #7

8.Which of the following is not a payroll report?

A.Form W-2

B.Form 1065

C.Form 940

D.Form 941

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Kay – Chapter 06 #8

9.The following are payroll liabilities except:

A.Federal income taxes

B.Unemployment taxes

C.Sales taxes

D.FICA

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Kay – Chapter 06 #9

10.Which of the following is typically used to track time for a single activity?

A.Employee Tracker

B.Stopwatch

C.Timesheet

D.QuickTime

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Kay – Chapter 06 #10

11.What QuickBooks activity comes next in this string of payroll activities?
Enter Time > Pay Employees > ______ > Process Payroll Forms

A.Reconcile Payroll

B.Print Payroll Report

C.Pay Payroll Liabilities

D.None of these

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Kay – Chapter 06 #11

12.When setting up a new employee where do you get their filing status and allowances information?

A.Form W-9

B.Form W-4

C.Form W-3

D.Form W-2

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Kay – Chapter 06 #12

13.All of the following are QuickBooks Payroll Services, except:

A.Basic

B.Assisted

C.Advanced

D.Enhanced

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Kay – Chapter 06 #13

14.When tracking time for subcontractors, which QuickBooks window is used to enter subcontractor information?

A.Vendor List

B.Item List

C.Payroll Setup

D.Employee List

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Kay – Chapter 06 #14

15.Which form summarizes payments made to subcontractors?

A.Form 940

B.Form 1065

C.Form 1099

D.W-4

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Kay – Chapter 06 #15

16.The payment to a stockholder who is not an employee of the company is a:

A.Dividend

B.Paycheck

C.Vendor payment

D.None of these

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Kay – Chapter 06 #16

17.Which of the following activities and QuickBooks window used to record it is incorrect?

A.Enter time worked; Weekly Timesheet

B.Pay payroll liabilities; Write Check

C.Enter employee information; Employee List

D.Pay payroll taxes; Pay Liabilities

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Kay – Chapter 06 #17

18.An individual’s status determines how to record payment to that individual. Which of the following status and payment method is incorrect?

A.Vendor; Bill

B.Employee; Payroll

C.Stockholder; Dividend

D.None of these

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Kay – Chapter 06 #18

19.To include a charge for labor on an invoice, labor as a service item must be recorded in the:

A.Item List

B.Vendor List

C.Inventory List

D.Employee List

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Kay – Chapter 06 #19

20.The Payroll Center:

A.Contains the employee list

B.Manages payroll and tax information

C.Is where employees enter time worked

D.Is located in the Banking Center

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Kay – Chapter 06 #20

21.Which of the following ways to track time is not supported by QuickBooks Pro and QuickBooks Premier?

A.Time Single Activity

B.Weekly Timesheet

C.Time clock

D.Online Timesheets

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Kay – Chapter 06 #21

22.Which of the following may be billed to a specific customer job?

A.Mileage

B.Hours

C.Expenses

D.All of these

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Kay – Chapter 06 #22

23.The Payroll Center has the following sections except:

A.Pay Employees

B.Write Checks

C.Pay Scheduled Liabilities

D.File Tax Forms

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Kay – Chapter 06 #23

24.What is purpose of Federal Form 940?

A.Summarize the amount of unemployment tax paid and due by the company

B.Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter

C.Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year

D.Summarize of all your W-2 forms

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Kay – Chapter 06 #24

25.What is the purpose of Federal Form 941?

A.Summarize the amount of unemployment tax paid and due by the company

B.Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter

C.Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year

D.Summarize of all your W-2 forms

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Kay – Chapter 06 #25

26.Name 3 (three) types of payroll liabilities and indicate who funds each one.

Federal Income Tax – funded by the employee, State Income Tax – funded by employee, FICA – funded by both the employee and employer, and Unemployment Taxes – funded by the employer.

Kay – Chapter 06 #26

27.Briefly describe what the “Time by Job” project reports tell management.

These reports can help management by telling them how much time was worked on each job. Detail can also be given by category, by employee, or by service offered.

Kay – Chapter 06 #27

6 Summary

Category# of Questions
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Kay – Chapter 0627

Chapter 7

1.The order of the steps in the accounting cycle includes:

A.Adjusted trial balance, financial reports, adjusting entries, trial balance

B.Adjusted trial balance, adjusting entries, financial reports, trial balance

C.Trial balance, adjusting entries, adjusted trial balance, financial reports

D.Trial balance, financial reports, adjusting entries, adjusted trial balance

2.What is an asset?

A.What remains after the liabilities are satisfied

B.What a company owes

C.What a company owns

D.What a company has after expenses are removed

3.To record adjusting journal entries in QuickBooks, select:

A.Company Center, Journal Entry icon

B.Accountant menu, Make General Journal Entries

C.Banking section of the Home page, Journal Entry icon

D.Company section of the Home page, Journal Entry icon

4.Examples of management reports for internal decision making include all of the following except:

A.1120S Report

B.Cash Budget

C.Cash Forecast

D.Accounts Receivable Aging Summary

5.Income tax reports in QuickBooks include all of the following except:

A.Income Tax Preparation report

B.Income Tax Detail report

C.Income Tax Summary report

D.Income Tax Mapping report

6.Sales are recorded under cash basis accounting when:

A.The goods or services are provided regardless of whether the cash is collected from the customers

B.The bookkeeper has time to record the transactions

C.The cash is collected from the customers

D.The costs are incurred to earn the revenue

7.The Income Statement lists:

A.Net Income and Owner’s Equity

B.Income and Expenses

C.Assets and Liabilities

D.Assets and Expenses

8.Which one of the following classifications is found on the Statement of Cash Flows?

A.Cash Flows from Financing Activities

B.Cash Flows from Purchasing Activities

C.Cash Flows from Owner’s Activities

D.Cash Flows from Selling Activities

9.What is owner’s equity?

A.What a company owes

B.What remains after the liabilities are satisfied

C.What a company owns

D.None of these

10.To print the General Ledger:

A.Select Chart of Accounts icon > Print Report

B.From the Company section of the Home page > select Trial Balance icon

C.Select Report Center > Accountant & Taxes, General Ledger

D.Select Company Center > Print General Ledger

11.The Profit & Loss Statement lists:

A.Assets and Expenses

B.Assets and Liabilities

C.Net Income and Owner’s Equity

D.Income and Expenses

12.What information does the Balance Sheet provide?

A.A summary of cash inflows and outflows over a specific time period

B.A company’s financial position on a specific date

C.Sales and expenses for a specific time period

D.None of these

13.The Statement of Cash Flows lists:

A.Operating, Investing, and Financing Activity

B.Assets, Liabilities, and Owner’s Equity

C.Income, Expenses, Liabilities

D.Gains, Losses, and Net Income

14.To export reports to Excel:

A.With the Report window open, click the Excel button

B.With the Report window open, click the Export button

C.With the Report window open, click the Print button

D.All of these

15.The Balance Sheet lists:

A.Assets, Liabilities, and Owner’s Equity

B.Gains, Losses, and Net Income

C.Operating, Investing, and Financing Activity

D.Income, Expenses, Liabilities

16.Which of the following determines if the account appears classified properly on the balance sheet?

A.Tax-Mapping Line

B.Account Number

C.Item Number

D.None of these

17.An accounting period may be:

A.One quarter

B.One month

C.One year

D.All of these

18.Providing information to external users’ decision making is the purpose of which of the following?

A.Management Reports

B.Tax forms

C.Financial statements

D.Inventory reports

19.Providing information to internal users’ decision making is the purpose of which of the following?

A.Management Reports

B.Tax forms

C.Financial statements

D.Vendor list

20.The Trial Balance:

A.Lists all the company’s accounts and ending balances

B.Is printed before and after making adjustments

C.Verifies the accounting system balances

D.All of these

21.The General Ledger:

A.Is always provided to external users for decision making

B.Provides the quickest way to communicate financial information

C.Is a collection of all of the company’s accounts and account activity

D.None of these

22.Cash inflows and outflows related to the company’s primary business are categorized as cash flows from:

A.Investing activities

B.Financing activities

C.Sales activities

D.Operating activities

23.Cash inflows and outflows related to acquisition and disposal of long-term assets are categorized as cash flows from:

A.Investing activities

B.Financing activities

C.Sales activities

D.Operating activities

24.Cash inflows and outflows to and from investors and creditors are categorized as cash flows from:

A.Investing activities

B.Financing activities

C.Sales activities

D.Operating activities

25.The Income Tax Preparation report:

A.Summarizes income and expenses that should be listed on a business income tax return

B.Lists the assigned tax line for each account

C.Provides detailed information about the income and expenses

D.All of these

26.Adjusting entries should be made ______________ preparing financial statements.

A.Before

B.During

C.After

D.Never

27.Unearned revenue occurs when:

A.Customers pay after receiving a service

B.Customers pay in advance of receiving a service

C.Customers default and do not pay you what is owed

D.All of these

28.Briefly explain 2 (two) differences between depreciation on a tax return and on a financial statement.

29.What is the difference between the cash basis and the accrual basis?

7 Key

1.The order of the steps in the accounting cycle includes:

A.Adjusted trial balance, financial reports, adjusting entries, trial balance

B.Adjusted trial balance, adjusting entries, financial reports, trial balance

C.Trial balance, adjusting entries, adjusted trial balance, financial reports

D.Trial balance, financial reports, adjusting entries, adjusted trial balance

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Kay – Chapter 07 #1

2.What is an asset?

A.What remains after the liabilities are satisfied

B.What a company owes

C.What a company owns

D.What a company has after expenses are removed

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Kay – Chapter 07 #2

3.To record adjusting journal entries in QuickBooks, select:

A.Company Center, Journal Entry icon

B.Accountant menu, Make General Journal Entries

C.Banking section of the Home page, Journal Entry icon

D.Company section of the Home page, Journal Entry icon

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Kay – Chapter 07 #3

4.Examples of management reports for internal decision making include all of the following except:

A.1120S Report

B.Cash Budget

C.Cash Forecast

D.Accounts Receivable Aging Summary

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Kay – Chapter 07 #4

5.Income tax reports in QuickBooks include all of the following except:

A.Income Tax Preparation report

B.Income Tax Detail report

C.Income Tax Summary report

D.Income Tax Mapping report

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Kay – Chapter 07 #5

6.Sales are recorded under cash basis accounting when:

A.The goods or services are provided regardless of whether the cash is collected from the customers

B.The bookkeeper has time to record the transactions

C.The cash is collected from the customers

D.The costs are incurred to earn the revenue

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Kay – Chapter 07 #6

7.The Income Statement lists:

A.Net Income and Owner’s Equity

B.Income and Expenses

C.Assets and Liabilities

D.Assets and Expenses

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Kay – Chapter 07 #7

8.Which one of the following classifications is found on the Statement of Cash Flows?

A.Cash Flows from Financing Activities

B.Cash Flows from Purchasing Activities

C.Cash Flows from Owner’s Activities

D.Cash Flows from Selling Activities

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Kay – Chapter 07 #8

9.What is owner’s equity?

A.What a company owes

B.What remains after the liabilities are satisfied

C.What a company owns

D.None of these

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Kay – Chapter 07 #9

10.To print the General Ledger:

A.Select Chart of Accounts icon > Print Report

B.From the Company section of the Home page > select Trial Balance icon

C.Select Report Center > Accountant & Taxes, General Ledger

D.Select Company Center > Print General Ledger

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Kay – Chapter 07 #10

11.The Profit & Loss Statement lists:

A.Assets and Expenses

B.Assets and Liabilities

C.Net Income and Owner’s Equity

D.Income and Expenses

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Kay – Chapter 07 #11

12.What information does the Balance Sheet provide?

A.A summary of cash inflows and outflows over a specific time period

B.A company’s financial position on a specific date

C.Sales and expenses for a specific time period

D.None of these

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Kay – Chapter 07 #12

13.The Statement of Cash Flows lists:

A.Operating, Investing, and Financing Activity

B.Assets, Liabilities, and Owner’s Equity

C.Income, Expenses, Liabilities

D.Gains, Losses, and Net Income

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Kay – Chapter 07 #13

14.To export reports to Excel:

A.With the Report window open, click the Excel button

B.With the Report window open, click the Export button

C.With the Report window open, click the Print button

D.All of these

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Kay – Chapter 07 #14

15.The Balance Sheet lists:

A.Assets, Liabilities, and Owner’s Equity

B.Gains, Losses, and Net Income

C.Operating, Investing, and Financing Activity

D.Income, Expenses, Liabilities

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Kay – Chapter 07 #15

16.Which of the following determines if the account appears classified properly on the balance sheet?

A.Tax-Mapping Line

B.Account Number

C.Item Number

D.None of these

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Kay – Chapter 07 #16

17.An accounting period may be:

A.One quarter

B.One month

C.One year

D.All of these

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Kay – Chapter 07 #17

18.Providing information to external users’ decision making is the purpose of which of the following?

A.Management Reports

B.Tax forms

C.Financial statements

D.Inventory reports

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Kay – Chapter 07 #18

19.Providing information to internal users’ decision making is the purpose of which of the following?

A.Management Reports

B.Tax forms

C.Financial statements

D.Vendor list

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Kay – Chapter 07 #19

20.The Trial Balance:

A.Lists all the company’s accounts and ending balances

B.Is printed before and after making adjustments

C.Verifies the accounting system balances

D.All of these

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Kay – Chapter 07 #20

21.The General Ledger:

A.Is always provided to external users for decision making

B.Provides the quickest way to communicate financial information

C.Is a collection of all of the company’s accounts and account activity

D.None of these

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Kay – Chapter 07 #21

22.Cash inflows and outflows related to the company’s primary business are categorized as cash flows from:

A.Investing activities

B.Financing activities

C.Sales activities

D.Operating activities

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Kay – Chapter 07 #22

23.Cash inflows and outflows related to acquisition and disposal of long-term assets are categorized as cash flows from:

A.Investing activities

B.Financing activities

C.Sales activities

D.Operating activities

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Kay – Chapter 07 #23

24.Cash inflows and outflows to and from investors and creditors are categorized as cash flows from:

A.Investing activities

B.Financing activities

C.Sales activities

D.Operating activities

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Kay – Chapter 07 #24

25.The Income Tax Preparation report:

A.Summarizes income and expenses that should be listed on a business income tax return

B.Lists the assigned tax line for each account

C.Provides detailed information about the income and expenses

D.All of these

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Kay – Chapter 07 #25

26.Adjusting entries should be made ______________ preparing financial statements.

A.Before

B.During

C.After

D.Never

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Kay – Chapter 07 #26

27.Unearned revenue occurs when:

A.Customers pay after receiving a service

B.Customers pay in advance of receiving a service

C.Customers default and do not pay you what is owed

D.All of these

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Kay – Chapter 07 #27

28.Briefly explain 2 (two) differences between depreciation on a tax return and on a financial statement.

On a tax return, depreciation is calculated using MACRS and follows the rules of the IRS. For financial statements, depreciation is calculated most often by the straight-line method and following the rules of GAAP.

Kay – Chapter 07 #28

29.What is the difference between the cash basis and the accrual basis?

Cash basis – A sale is recorded when cash is received from the customer. Expenses are recorded when cash is paid.
Accrual basis – Sales are recorded when the good or service is provided regardless of when the cash is collected from the customer. Expenses are recorded when the cost is incurred or expires, even if the expense has not been paid.

Kay – Chapter 07 #29

7 Summary

Category# of Questions
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Kay – Chapter 0729

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