121. An aid in internal control over payrolls that indicates employee attendance is A. "clock card"B. voucher systemC. payroll registerD. employee's earnings record
122. Which of the following is not an internal control procedure for payroll? A. employees observed clocking in and outB. payroll depends on a fired employee's supervisor to notify them when an employee has been firedC. payroll requires employees to show identification when picking up their paychecksD. changes in pay rates on a computerized system must be tested by someone independent of payroll
123. A pension plan which requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed A. fundedB. unfundedC. defined benefitD. defined contribution
124. During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $21,500 and $15,000. The vacations are expected to be taken in the next year and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year? A. $15,000B. $36,500C. $6,500D. $21,500
125. A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n) A. defined contribution planB. defined benefit planC. unfunded planD. funded plan
126. Vacation pay payable is reported on the balance sheet as A. current liability or long-term liability, depending upon when the vacations will be taken by employeesB. current liabilityC. stockholders’ equityD. long-term liabilities
127. An unfunded pension liability is reported on the balance sheet as A. current liabilityB. stockholders’ equityC. long-term liabilityD. current liability or long-term liability, depending upon when the pension liability is to be paid
128. The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is A. debit Vacation Pay Expense; credit Vacation Pay PayableB. debit Vacation Pay Payable; credit Vacation Pay ExpenseC. debit Salary Expense; credit CashD. debit Salary Expense; credit Salaries Payable
129. The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of the year is A. debit Salary Expense; credit CashB. debit Pension Expense; credit Unfunded Pension LiabilityC. debit Pension Expense; credit Unfunded Pension Liability and CashD. debit Pension Expense; credit Cash
130. The journal entry a company uses to record partially funded pension rights for its salaried employees, at the end of the year is A. debit Salary Expense; credit CashB. debit Pension Expense; credit Unfunded Pension LiabilityC. debit Pension Expense; credit Unfunded Pension Liability and CashD. debit Pension Expense; credit Cash