Bonus allocation: A: 60% × $10,000 = $6,000 B: 40% × $10,000 = $4,000
Detective controls identify errors after they occur. Monthly bank reconciliation catches discrepancies. Segregation and pre-numbered invoices are preventive. Answer: c) Monthly bank reconciliation Question 4 (Taxation – Withholding Tax on Compensation) Employee earns $5,000 monthly. Withholding tax table shows $600 tax for that bracket. Employer also withholds $200 for SSS/health insurance. What is the net pay? a) $4,800 b) $4,200 c) $4,400 d) $5,000 Accounting Exit Exam Question and Solutions wit...
Section C: Tips for Passing the Accounting Exit Exam | Topic | Key Focus Areas | |-------|----------------| | FAR | Revenue recognition, adjusting entries, bank reconciliation, inventory (FIFO/LIFO), depreciation methods | | Cost & Management | CVP analysis, job order vs. process costing, variance analysis, budgeting | | Auditing | Audit opinions, internal controls (preventive/detective), evidence, ethical standards | | Taxation | Compute taxable income, withholding tax, VAT, filing deadlines | | Financial Ratios | Liquidity, solvency, profitability – know formulas and interpretation | Bonus allocation: A: 60% × $10,000 = $6,000
Book balance: $13,500 Less: Bank service charge: –$50 Less: NSF check: –$450 Adjusted book balance: $13,000 Answer: c) Monthly bank reconciliation Question 4 (Taxation