1 the components of the payroll system are a payroll register payroll cheques and an 4300914

 

 

1) The components of the payroll system are a payroll register, payroll cheques, and an earnings record for each employee.

2) The duties of hiring and terminating employees should be separated from payroll accounting and from access to pay cheques.

 

3) Current liabilities:

A) are subtracted from long-term liabilities on the balance sheet.

B) must be of a known amount.

C) must be of an estimated amount.

D) are due within one year or one operating cycle, whichever is longer.

 

Table 11-3

 

Bentley Enterprises purchased $8,000 of inventory by issuing a six-month, 7.5% note payable on November 1, 2013. Bentley has a December 31 year end.

 

4) Refer to Table 11-3. The December 31, 2013, balance sheet would report:

A) an interest payable of $100.

B) an interest expense of $300.

C) a note payable of $8,100.

D) a note payable of $8,200.

Table 11-4

 

Lumas Company gives a $50,000, 180-day note payable to its bank at 9% on September 15, 2013 for a cash loan. Lumas has a December 31 year end.

 

5) Refer to Table 11-4. The December 31, 2013, balance sheet would report a(n):

A) note payable of $50,900.00.

B) interest payable of $51,319.18.

C) note payable of $1,319.18.

D) interest payable of $1,319.18.

 

6) Interest payable is classified as a(n):

A) contra asset.

B) asset.

C) long-term liability.

D) current liability.

 

7) Reporting a current liability as long term:

A) overstates working capital.

B) understates the current ratio.

C) has no effect on the acid-test ratio.

D) understates working capital.

8) All of the following are components of a payroll system except a(n):

A) payroll sinking fund.

B) payroll register.

C) payroll cheques.

D) employee earnings record.

 

9) The information needed to record salary expense for the period comes from the:

A) employee earnings record.

B) T1 Special.

C) TD1 form.

D) payroll register.

 

10) The payroll register includes a column for all of the following except:

A) income taxes.

B) Workers' Compensation Board.

C) cheque number.

D) total deductions.