Deck 16: Bookkeeping Procedures: Accounts Payable

Question 1

Fill in the blank: _______ is the amount of pay given before any deductions have been taken out.

A)Gross salary
B)Net salary
C)Take home salary
D)After tax income

Answer 1

Gross salary

Question 2

You have been assigned to handle the payroll for the dental office.What government publication would be a helpful reference?

A)IRS Publication 15 Circular E
B)U.S.Treasury Publication 1541
C)IRS Form I-9
D)Form 941

Answer 2

IRS Publication 15 Circular E

Question 3

A(n)_______ is a list that summarizes all invoices sent during the month.

A)accounting report
B)statement
C)pegboard copy
D)payment authorization

Answer 3

statement

Question 4

Which of the following is not needed to reconcile an account?

A)Check register
B)Payroll records
C)Deposit records
D)Bank statements

Question 5

Which of the following is not an acceptable method of voiding a check?

A)Write VOID in the check memo area.
B)Write VOID across the face of the check.
C)Tear the check in half and tape it back together,after writing VOID in the check signature area.
D)Tear the signature area from the check.

Question 6

Which of the following is an Employer Identification Number?

A)212-45-8761
B)27-8437796
C)D-1-602E
D)307-BUR-2011

Question 7

An invoice is a list of purchased items and their charges.What do you call a list of the totals of all the invoices?

A)Ledger
B)Deposit slip
C)Statement
D)Register

Question 8

Fill in the blank: It may take up to _______ days for a check,sent by mail,to be received and processed.

A)5
B)7
C)10
D)30

Question 9

The first step in reconciling the bank statement is to verify:

A)the balance.
B)deposits.
C)debits.
D)canceled checks.

Question 10

Which of the following statements is false?

A)Unpaid bills should be categorized alphabetically,using the company name.
B)Monthly statements include a grace period.
C)Bills paid electronically are received and processed more quickly than payments sent through the mail.
D)Some types of payments must be paid on a specific date,or a penalty will be assessed.

Question 11

Accounts payable can be defined as a:

A)system of recording all financial transactions.
B)system that records all financial transactions between a patient and the dental practice.
C)system that records all monies the dental practice owes others.
D)method used to verify and classify all transactions.

Question 12

Salary can be reported in several ways.From the following,identify the classification in which employees are paid according to the amount of work they produce.

A)Hourly employee
B)At will employee
C)Contract employee
D)Salaried employee

Question 13

Federal income,Social Security,and Medicare taxes are reported on which of the following government forms?

A)Form 1099
B)Form 941
C)W-2
D)W-4

Question 14

New employees must complete _______.

A)an I-9 form
B)a W-4 form
C)a W-2 form
D)both A and B

Question 15

The IRS W-4 form serves what purpose?

A)Documents employment eligibility
B)Establishes employee's withholding allowance
C)Documents eligibility for earned income credit
D)Documents wages earned

Question 16

Which of the following statements is true?

A)Married employees can share a payroll record.
B)Payroll and personnel records should be kept in the same file.
C)Personnel records are confidential.
D)A copy of the employee's social security card can be kept in the employee's personnel record.

Question 17

Insurance companies commonly _______ in a practice called direct deposit.

A)deposit funds through an ATM
B)transmit information to the bank through scanned images of a check
C)take funds to the bank to have them physically deposited in the dental practice bank account
D)transfer money directly from their bank account to the dental practice bank account

Question 18

A "one-write system" is an example of a(n)__________ system.

A)computerized bookkeeping
B)manual bookkeeping
C)one-step accounts payable and receivable
D)automated billing

Question 19

Payments can be authorized automatically,on the same day each month.These automatic payments do not need to be recorded,documented,or verified.

A)The first statement is true;the second statement is false.
B)The first statement is false;the second statement is true.
C)Both statements are true.
D)Both statements are false.

Question 21

How long must payroll records be kept?

Question 22

Sound accounting practices mandate that the person who writes the checks cannot also sign the checks.

Question 23

All employment tax records must be kept for a period of _____ years.

A)2
B)4
C)5
D)7

Question 24

A new employee is asked to present documents that prove he has the right to work in the United States.All the following documents are acceptable,except a(n):

A)expired U.S.passport.
B)unexpired employment authorization document issued by the INS,with a photograph.
C)driver's license and U.S.Social Security card.
D)expired foreign passport with I-551 stamp.