In preparing a bank reconciliation, the amount indicated by a debit memo for bank service charges is added to thebalance per company's records.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) Albert, the accountant, has been asked by his boss to calculate the net pay for each of Pinnock Company's three employees.
Albert has gathered the following information about payroll for the period:
Larry Curly Moe
Gross pay 50,000 20,000 35,000
Federal income taxes withheld 7,500 3,000 4,000
Required: Calculate the net pay for each of the employees. Assume that FICA (Social Security) taxes are withheld at the rate of 6.2 of gross pay and that Medicare taxes are withheld at the rate of 1.45 of gross pay.
What will be an ideal response?
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Q. 3) The primary reasons for performing regular employee performance reviews include all of the following except:
a. determine whether an employee is satisfying the requirements indicated by a job description
b. assess an employee's strengths and weaknesses
c. assist management in determining salary adjustments, promotions, or terminations
d. develop a strategy for filling necessary positions
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Q. 4) The TOTAL amount of depreciation recorded over the life of a long-term asset depends on the method used to depreciate that asset.
Indicate whether the statement is true or false
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Q. 5) The cost of workers' compensation insurance for the employer depends on all of the following EXCEPT
a. the number of employees.
b. the riskiness of the jobs the employees perform.
c. the company's accident history.
d. the amount of FICA, FUTA, and SUTA taxes due.
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Q. 6) Compare and contrast the perpetual and periodic inventory systems.
What will be an ideal response?
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