Is the separation of the purchase function and the payment function for Panera Bread an issue of int

1
Is the separation of the purchase function and
the payment function for Panera Bread an issue of
internal control?

• Yes
• No

2
Do all companies such as Panera Bread purchase
supplies for manufacturing or resale on credit?

• Yes
• No

3
Do you think companies that extend credit
consider the risk of nonpayment?

• Yes
• No

4
Do the terms of short-term credit vary by
company?

• Yes
• No

5
Do all companies have the same types of current
liabilities like Panera Bread?

• Yes
• No

6
Current liabilities are obligations that will be
paid out of current assets and are due within a
short time, usually within one year.

• True
• False

7
Total earnings of an employee for a payroll
period less employer payroll tax expenses is
called net pay.

• True
• False

8
Internal controls should be in place for
processing and paying a companys payroll.

• True
• False

9
A good internal control feature is to not have a
special payroll account.

• True
• False

10
Payroll taxes become a liability to the employer
when the payroll is paid.

• True
• False

11
A companys financial statement does not need to
fully disclose the nature of its postretirement
benefits obligations.

• True
• False

12
If a contingent liability is probable and the
amount of the liability can be reasonably
estimated, it is recorded and disclosed.

• True
• False

13
Which of the following is a current liability?

• Accounts Receivable
• Revenue
• Accounts Payable
• Bonds Payable

14
The journal entry to record the payment of an
interest-bearing note at its maturity is

• debits to Interest Expense and Cash and a credit
  to Notes Payable
• debits to Notes Payable and Interest Expense and
  a credit to Notes Payable
• a debit to Notes Payable and a credit to Cash
• a debit to Cash and credits to Notes Payable and
  Interest Revenue

15
Which of the following is not an employer payroll
tax expense?

• Federal unemployment tax
• State unemployment tax
• Federal income tax
• Social security tax

16
A multicolumn report used for summarizing the
data for each payroll period is called a

• time card
• employees earnings record
• payroll bank account
• payroll register

17
Cash payment controls for payroll include all of
the following except

• leaving blank checks in an unlocked and
  unsupervised area
• verifying and approving all payroll rate changes
• carefully controlled access to the check printing
  machine
• use of a special payroll bank account

18
Which of the following is not considered a fringe
benefit for an employee?

• Pension plan
• Vacation
• Federal income taxes withheld
• Medical insurance

19
The payroll tax that is paid by both the employer
and the employee is the

• state unemployment tax
• FICA tax
• federal unemployment tax
• state unemployment tax

20
The journal entry to record the payroll for a
period will include a credit to Salaries (Wages)
Payable for the

• total earnings
• total earnings less all payroll deductions
• total earnings less taxes payable
• total earnings less voluntary deductions

21
A pension plan where the company invests
contributions on behalf of the employee during
the employees working years is called a

• defined benefit plan
• 401k plan
• defined contribution plan
• social security

22
The criteria to not disclose or record a
contingent liability is

• remote
• probable and not estimable
• reasonably possible and estimable
• reasonably possible and not estimable

23
On July 1, Bella Salon Company issued a 60-day
note with a face amount of 60,000 to Delilah
Hair Products Company for merchandise inventory.

• TRUE OR FALSE The proceeds of the note, assuming
  the note carries an interest rate of 6, are
  60,000.

24
Choose Answer

• True
• False

25
On July 1, Bella Salon Company issued a 60-day
note with a face amount of 60,000 to Delilah
Hair Products Company for merchandise inventory.

• TRUE OR FALSE The proceeds of the note, assuming
  the note is discounted at 6, are 60,000.

26
Choose Answer

• True
• False

27
Karen Dunns weekly gross earnings for the week
ending December 3 were 2,250, and her federal
income tax withholding was 466.19. Prior to this
week, Dunn had earned 98,000 for the year.
Assuming the social security rate is 6 on the
first 100,000 of annual earnings and Medicare is
1.5 of all earnings, what is Dunns net pay?

28
Choose Answer

• 2,250
• 1,630.06
• 1,783.81
• 1,750.06

29
Cook-Rite Inc. sold 140,000 of kitchen
appliances during August under a six-month
warranty. The cost to repair defects under the
warranty is estimated at 6 of the sales price.
On September 11, a customer required a 200 part
replacement, plus 90 of labor under the
warranty. TRUE OR FALSE The balance in Product
Warranty Payable after (a) the estimate and (b)
the September replacement was 8,110.
30
Choose Answer

• True
• False