Accounts Payable
 

  1. Question: Barnel Corp. owns and manages 19 apartment complexes. On signing a lease, each tenant has to pay the first and the last month's rent and a $500 refundable security deposit. The security deposits are rarely refunded in total because cleaning costs of $150 per apartment are almost always deducted. About 30% of the time, the tenants are also charged for damages to the apartment, which typically costs $100 to repair. If a one year lease deed is signed on a $900 per month apartment, what amount would the company report as refundable security deposit?

    A
    $1,400

    B
    4500

    C
    $350

    D
    $320

    Note: Not available
    1. Report

  2. Question: The correct journal entry to record a return of inventory purchased on credit basis using a perpetual inventory system includes:

    A
    debit Inventory, credit Accounts Payable

    B
    debit Cost of Goods Sold, credit Inventory

    C
    debit Accounts Receivable, credit Sales Revenue

    D
    debit Accounts Payable, credit Inventory

    Note: Not available
    1. Report

  3. Question: Hudson Hotels collects 15 % as city sales tax on room rentals, in addition to $2 per room, per night, as occupancy tax. Sales tax for each month is due at the end of the following month, and occupancy tax are due 15 days after the end of each calendar quarter. On January 3, 2008, Hudson paid its November 2007 sales tax and occupancy tax for the fourth quarter of 2007. Additional information pertaining to Hudson's operations is as follows: 2007 Room Rentals Room Nights October $100,000 $1,100 November $110,000 $1,200 December $150,000 $1,800 What amounts should Hudson report as sales tax payable and occupancy tax payable in its December 31, 2007 balance sheet? Sales Tax Occupancy Taxes

    A
    $39,000 $6,000

    B
    $39,000 $8,200

    C
    $54,000 $6,000

    D
    $54,000 $8,200

    Note: Not available
    1. Report

  4. Question: Why do companies use the government listed mileage rate for the reimbursement of traveling expenses rather than paying actualexpenses?

    A
    It is cheaper than paying people for gas

    B
    It is simpler for the employer and fairly reimburses the employees for the expenditure on gas and the wear and tear of the vehicle

    C
    It is required by the tax law

    D
    It limits the company's liability if the person is involved in an accident while driving for work purposes

    Note: Not available
    1. Report

  5. Question: Ross & Co. pays all salaried employees on Monday for the 5-day work week ended the previous Friday. The last payroll recorded for the year ended December 31, 2004 was for the week ended December 25, 2004. The payroll for the week ended January 1, 2005 included regular weekly salaries of $80000 and vacation pay of $ 25000 for the vacation time earned in 2004 but not taken by December 31, 2004. Ross had an accrued liability of $20000 for vacation pay as on December 31, 2003. In its December 31, 2004 balance sheet, what amount should Ross report as accrued salary and vacation pay?

    A
    $64000

    B
    $69000

    C
    $84000

    D
    $89000

    Note: Not available
    1. Report

  6. Question: What is the best way to reimburse Travel and Entertainment to the employees who do not wish to use the electronic form of reimbursement?

    A
    The reimbursement should be included in the normal paycheck.

    B
    The reimbursement should be ignored

    C
    The reimbursement should be made by cash

    D
    All of the above

    Note: Not available
    1. Report

  7. Question: On July 1, 2006, Ran County issued reality tax assessments for its fiscal year ended June 30, 2007. The assessments were to be paid in two equal installments. On September 1, 2006, Day & Co. purchased a warehouse in Ran County. The purchase price was reduced by a credit for accrued realty taxes. The company did not record the entire year's real estate tax obligations, but instead records tax expenses at the end of each month by adjusting prepaid real estate taxes payable, as appropriate. On November 1, 2006, it paid the first installment of $12000 for realty taxes. What amount of this payment should it record as a debit to real estate taxes payable?

    A
    $4,000

    B
    $8,000

    C
    $10,000

    D
    $12,000

    Note: Not available
    1. Report

  8. Question: What does the acronym EFT stand for?

    A
    Electronic File Transfer

    B
    Electronic Funds Transfer

    C
    Both a and b

    D
    Electronic Fund Tour

    Note: Not available
    1. Report

  9. Question: When a deposit is used as payment, what is the journal entry from the customer's (the person who made the deposit) perspective?

    A
    Debit Cash, credit Service Expense

    B
    Debit Accounts Payable, credit Cash

    C
    Debit Service Expense, credit Cash

    D
    Debit Service Expense, credit Other Advances

    Note: Not available
    1. Report

  10. Question: Under which head does VAT reflect in the Balance Sheet?

    A
    Equity

    B
    Creditors

    C
    Fixed Asset

    D
    Current Asset

    Note: Not available
    1. Report
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