1. To calculate the balance in a checking account?
Add deposits and checks together
Add Checks to begining balance
Subtrract deposits from checks
Add Deposits and begining balance and subtract checks
2. What is a running balance?
Beginning balance plus deposits and minus checks or electronic withdrawls.
Checks plus deposits
Beginning balance minus doutstanding deposits
A balance that does not change
3. VE standard payments for companies represents?
Money generated fom sales at trade shows
Bills that need to be paid each month
Money to purchase a booth
Expenses incurred by the main office
4. The form sent by the bank to the customer each month is called?
5. If you have 25 employees in your company, how much would the electric bill be each month?
None of the above
6. If you have 30 employees in your company, how much do you owe VirtuPhone each month?
None of the above
7. When paying the Franchise Tax, what three amounts relating to payroll need to be sent?
FUTA, State Income Tax and Medicare
SUTA, SDI, State Income Tax
FICA, Medicare, Sales Tax
FICA, FUTA, Federal Income Tax
8. When paying the IRS, what four amounts should be sent?
FUTA, Federal Income Tax, Medicare, FICA
FUTA, Sales Tax, FICA, Medicare
Payroll taxes, FICA, Medicare, Sales Tax
There only two amounts that need to be sent.
9. Your payment for the Internet should be?
10. The top portion of a bank statement shows?
A summary of transactions for the month
Details of each transaction
11. The process of comparing your records with the bank's records is called?
Cash flow analysis
12. Why is the bank's ending balance not the same as the ending balance in your checkbook?
They should be the same
The ending dates are usually different
They do not contain electronic payments
They do not contain automatic deposits
13. Transactions that are not reflected in the bank statement are called.
14. In preparing a bank reconciliation, you should first?
Look at both ending balance and then compare transactions in your records and the bank's statement.
Add up the outstanding deposits
Subtract outstanding checks
Check the bank's arithmetic
15. When doing a bank reconciliation, outstanding deposits should be?
Added to your balance
Subtracted from your balance
Added to the bank's ending balance
Chapter 6 Accounting Test