Question

In: Accounting

1. A strong internal control system requires that all payments be made from a petty cash...

1. A strong internal control system requires that all payments be made from a petty cash fund.? True or False

2. Cash Short or over is an expense account when it has a credit balance.? True or False

3. The entry to replenish petty cash includes a debit to Petty Cash Fund and a credit to Cash.? True or False

4. An employee's regular hourly rate is $9. His overtime rate is 1.5 times the regular rate. If he works 42 hours in one week, his gross pay will be $567.? True or False

5. One item that determines the amount of federal income tax withheld by the employer is an employee's marital status.?True or False

6. The employer must issue each employee a Form W-2 by January 15 of the next year.? True or False

Solutions

Expert Solution

Please Find the Below Answers & Explantions & DONT FORGET TO GIVE A LIKE

Question 01: The given Statement is TRUE.

Explanation: The payment of cash requires strong and continous internal control system. Therefore, strong Internal Control System Required.

Question 02: The given statement is FALSE.

Explanation:

When you have credit Balance in cash short (or) over it is a Revenue not an expense.

When Cash Short (or) over is an expense account when it has a Debit Balance

Question 03: The given statement is TRUE.

Explanation:

The petty cash journal entry is a debit to Petty Cash Account and a credit to the Cash Account.

Question 04. The given Statement is TRUE.

Explanation:

Total Number of Hours Worked in a week - 42 Hours

Hourly Rate - $9

Overtime Rate per Hour - 1.5 times of normal Rate (i.e.) = $9 x 1.5 times = $13.5 per hour

Gross Pay per One week = $13.5 x 42 Hours = $567

Question 05. The given Statement is TRUE.

Explanation:

The amount of federal income tax withheld by the employer includes Employee's Income, marital status, number of Dependents and number of jobs all determine the amount withheld.

Question 06. The given Statement is FALSE.

Explanation:

The employer must issue each employee a Form W-2 on (or) before January 31st, so that the employees can get two months for preparation of their Returns

ekkarill92 answered 1 year ago
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