ACC 206 Week 2 Quiz

Question 1


Your answer is correct.


A payroll record that accumulates the gross earnings, deductions, and net pay by employee for each pay period is the



payroll register.


withholding tax table.


employee earnings record.


Wage and Tax Statement.

Question 2


Your answer is correct.


Unearned Rent Revenue is



debited when rent is received in advance.


a contra account to Rent Revenue.


reported as a current liability.


a revenue account.

Question 3


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Companies usually report current liabilities, after notes and accounts payable, in



order of maturity.


random order.


alphabetical order.


order of magnitude.

Question 4


Your answer is correct.


Current maturities of long-term debt



are optionally reported on the balance sheet.


require an adjusting entry.


can be properly classified during balance sheet preparation, with no adjusting entry required.


are not considered to be current liabilities.

Question 5


Your answer is correct.


The total compensation earned by an employee is called



net pay.


net earnings.


gross earnings.


take-home pay.

Question 6

Waterway, Inc. sells 1340 units of a product that has a one-year warranty on parts. The average cost of honoring one warranty contract is $50. During the year 70 contracts are honored at a total cost of $3500. It is estimated that 140 contracts will be honored in the following year. The adjusting entry at the end of the current year will include a



credit of Warranty Liability $7000.


credit of Warranty Liability $10500.


debit of Warranty Expense $3500.


debit of Warranty Expense $10500.

Question 7

On October 1, Sunland’s Carpet Service borrows $347000 from First District Bank on a 3-month, $347000, 8% note. What entry must Sunland’s Carpet Service make on December 31 before financial statements are prepared?



Interest Expense 27760

Interest Payable 27760


Interest Expense 6940

Interest Payable 6940


Interest Expense 6940

Notes Payable 6940


Interest Payable 6940

Interest Expense 6940

Question 8


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Jason Gomi has worked 48 hours this week. He worked in excess of 8 hours each day. His regular hourly wage is $6 per hour. What are Jason’s gross wages for the week? (The company Jan works for is in compliance with the Fair Labor Standards Act.)










Question 9


Your answer is correct.


Sarah Jones’s regular rate of pay is $26 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. She worked 49 hours last week. Therefore, her gross wages were










Question 10


Your answer is correct.


Lake Concord Company has twenty employees who each earn $113 per day. If they accumulate vacation time at the rate of 1.2 vacation days for each month worked, the amount of vacation benefits that should be accrued at the end of the month is










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