Reference no: EM132949954

1. Which of the following statements is false?
A. An asset account is increased by a debit
B. A liability account is increase by a credit
C. A revenue account is decreased by a credit
D. An equity account is increased by a credit

2. Which of the following accounts is not closed out at year end?
A. Rent Expense
B. Unearned Revenue
C. Dividend Income
D. Salary Expense

3. How do you record a $500 check payable to the petty cash custodian to set up a petty cash fund?
A. Cash

B. Petty
Petty Cash Cash Expense 500

500
500
Cash 500
C. Petty Cash Cash 500
500
D. Petty Cash Expense Petty Cash 500
500

[4] The following information was gathered while reconciling PedCo's bank statement:

* Bank service charges amounted to $90
* The bank erroneously credited PedCo's account with a $9,200 deposit made by another firm
* Deposits in transit amounted to $3,700
* The company failed to record a deposit it had made for $2,200

Assuming these are the only adjustments in the bank reconciliation, what is the net (total) adjustment to the balance per bank? (Ignore whether the net adjustment is plus or minus.) A. $2,110
B. $7,010
C. $5,500
D. None of the above

[5] The following information was gathered while reconciling the bank statement:

* Bank service charges amounted to $90
* The bank erroneously credited the company's account for a $9,200 deposit made by another bank customer
* Deposits in transit amounted to $3,700
* The company failed to record a deposit it had made for $2,200

Assuming these are the only adjustments in the bank reconciliation, what is the net (total) adjustment to the balance per books? (Ignore whether the net adjustment is plus or minus.) A. $2,110
B. $7,010
C. $5,500
D. None of the above

[6] On January 1, your calendar year firm, which is on the accrual basis, rents a machine to RiCo for $15,000 a year. If, at year end, your firm has received $13,500 in rent, what adjusting journal entry does it record?
A. Rent Receivable
Rent Revenue 1,500
1,500
B. Rent Receivable
Rent Revenue 13,500
13,500
C. Rent Receivable
Rent Revenue 15,000
15,000
D. Cash
Rent Revenue 1,500
1,500

[7] Your firm, which is on the accrual basis, borrows $60,000 on a six-month, 10% note on October
1. Year end is November 30. What is the journal entry to accrue interest on November 30?
A. Interest Expense
Interest Payable 1,000
1,000
B. Interest Expense
Interest Payable 6,000
6,000
C. Interest Expense
Interest Payable 3,000
3,000
D. Interest Expense
Interest Payable 500
500

[8] Your company, which is on the accrual basis, collects a $15,000 advance for a $60,000 landscaping job and credits Unearned Revenue. If, at year end, your company has completed 10% of the job, what adjusting entry do you record?
A. Cash 15,000
Revenue 15,000
B. Cash 6,000
Revenue 6,000
C. Revenue
Unearned Revenue 9,000
9,000
D. Unearned Revenue
Revenue 6,000
6,000

[9] Your company, which is on the accrual basis, prepays $12,000 of rent for 1 year and debits Rent Expense. If, after 2 months, your company's year ends, what adjusting entry do you record?
A. Prepaid Rent
Rent Expense 10,000
10,000
B. Prepaid Rent
Rent Expense 2,000
2,000
C. Rent Expense
Prepaid Rent 10,000
10,000
D. Rent Expense
Prepaid Rent 2,000
2,000

[10] Your calendar year firm accrues salary at year end, as follows:

Salary Expense 24,000
Salary Payable 24,000

On January, 4, 20X7, your firm pays salary of $28,500, which includes the $24,000 in accrued salaries, but the payment was mistakenly recorded as follows.

Salary Expense 28,500
Cash 28,500

What correcting entry, if any, should you make?
A. Salary Payable
Cash
B. Salary Expense
Salary Payable 4,500

4,500
4,500

4,500
C. Salary Payable
Salary Expense 24,000
24,000
D. No entry is needed

[11] If an employee paid $10 an hour spent the workweek as follows, what is the employee's gross wages for the workweek under federal law?

Monday Hours worked
8
Tuesday -
Wednesday 8
Thursday -
Friday 13
Saturday -
Sunday 8
Total 37
A. $370
B. 385
C. 395
D. 410

[12] On November 23, your firm hires Joe, who had his full share of Social Security tax withheld on his prior job. For the remainder of 200X, your firm must:
A. Withhold Medicare tax, but not Social Security tax
B. Withhold Medicare, but not Social Security tax
C. Withhold both Medicare and Social Security tax
D. Withhold and match Medicare tax and withhold but need not match Social Security tax

[13] Form W-3 is used to
A. Report Social Security, Medicare, and federal income tax withholding to a visa holder
B. Notify the IRS that an employee refused to submit a completed W-4 to theemployer
C. Transmit copies of W-2 forms to the Social Security Administration
D. Correct an error made on a W-2

[14] For the year 2005, annual compensation to an independent contractor of $ or more is reported on Form :
A. $1,000,1099-MISC
B. $750, W-2
C. $600, 1099-MISC
D. $600, W-2

[15] As the bookkeeper for a calendar year company on the accrual basis, how would you record the payroll below for the week ended December 31, if wages will not be paid until January 8?
Gross salary $20,000
Amounts withheld:
Social Security tax $1,240
Medicare tax 290
Federal income tax 3,000
State income tax 1,000 (5,530)
Net $14,470
A. Salary Expense
FICA Tax Withheld 20,000
1,530
Federal Income Tax Withheld 3,000
State Income Tax Withheld 1,000
Salaries Payable 14,470
B. Salary Expense
Cash 14,470
14,470
C. Salary Expense
Cash
D. Salary Expense 20,000

14,470
20,000
FICA Tax Withheld 1,530
Federal Income Tax Withheld 3,000
State Income Tax Withheld 1,000
Cash 20,000

[16] On May 18, 20X9, your firm purchases a bookcase with the following data:

Cost $700
Sales tax $35
Freight (paid by purchaser) $40

To record the purchase, you should:
A. Debit Sales Tax Expense for $35
B. Debit Furniture And Equipment for$700
C. Debit Furniture And Equipment for$775
D. Debit Furniture And Equipment for$740

[17] On January 1, 200X, your calendar year company purchases a machine with the following data:

Cost $50,000
Salvage value $5,000
Useful life 5 years

After recording depreciation expense under the straight-line method for the year ended December 31, 200X, the accumulated depreciation for the machine will be:
A. $40,000
B. $30,000
C. $9,000
D. $36,000

[18] On January 1, 200X, your calendar year company purchases a machine with the data shown below. After recording depreciation expense for 200X under the double declining balance method, what will accumulated depreciation for the machine be?

Cost $36,000
Salvage value $6,000
Useful life 6 years

A. $12,000
B. $10,000
C. $6,000
D. $5,000

[19] Under MACRS, buildings are depreciated under the:
A. Double declining balance method
B. Sum of the years' digits method
C. Straight-line method
D. 150% declining balance method

[20] Your firm acquires a factory, a residential rental property, a machine, a computer, and an office calculator. Which assets qualify for a Section 179 election?
A. Only the factory
B. Only the machine, computer and calculator
C. Only the factory and the residential property
D. Only the residential rental property

[21] Under the perpetual method, inventory purchases are recorded with an increase to:
A. Merchandise Inventory
B. Cost Of Goods Sold
C. Purchases
D. both Merchandise Inventory and Cost Of Goods Sold

[22] If your company, which uses the perpetual method, purchases inventory for $10,000 at 2/10 net 30, records the purchase as shown below, and pays in full after the discount period, what should you do?

Merchandise Inventory 9,800
Accounts Payable 9,800

A. Debit Accounts Payable for $10,000
B. Debit Purchase Discounts Lost for $200
C. Credit Purchase Discounts Lost for $200
D. Credit Merchandise Inventory for $200

[23] If your company purchases merchandise on account for $960, how do you record a $10 credit on each of 7 damaged items under the perpetual method?
A. Purchase Returns And Allowances 70
Sales 70
B. Accounts Payable 70
Merchandise Inventory 70
C. Accounts Payable
Sales Returns And Allowances 70
70
D. Accounts Payable
Purchase Returns And Allowances 70
70

[24] Under the perpetual method, how do you record a $10,000 cash sale of inventory that cost
$6,000?
A. Cash 10,000
Cost Of Goods Sold 6,000 Merchandise Inventory

6,000
Sales 10,000
B. Cash 10,000
Purchases 6,000
Merchandise Inventory 6,000
Sales
C. Cash
10,000 10,000
Merchandise Inventory 6,000
Cost Of Goods Sold 6,000
Sales 10,000
D. Cash 10,000
Cost Of Goods Sold 6,000
Purchases 4,000

[25] If a company pays the delivery costs on its sales, it:
A. Includes delivery cost in its cost of goods sold
B. Allocates the delivery cost between cost of goods sold and ending inventory
C. Records delivery cost as a selling expense
D. Adds delivery cost to the ending inventory

Attachment:- Bookkeeper's Hiring Test.rar