Practice Quiz

MTEL Business Practice Exam - Question List

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26.
One provision of the Massachusetts Health Care Reform Act of 2006 states that businesses with more than ten employees that do not contribute to the health-care insurance of their employees:
  1. Must provide basic health-care services directly to employees.
  2. Would be assigned a lower priority when bidding on state contracts.
  3. Must pay a higher rate on state tax of corporate profits.
  4. Would be assessed an annual fee to help fund state health programs.
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27.
The sole proprietor of an established software design business decides to invest an additional $10,000 of her own money to buy new equipment and hire a new employee. The effect of this additional investment will be to:
  1. Increase the business's assets.
  2. Decrease owner's equity.
  3. Increase profits.
  4. Decrease liabilities.
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28.
On May 31, Hadrian Trading Services issued an invoice to Jonathan Smith for brokerage commissions in the amount of $2,000. A month later, Smith sent a partial payment in the amount of $1,000. When recording the payment, the accountant of Hadrian Trading Services should credit which of the following accounts for the amount of $1,000?
  1. Revenue commissions.
  2. Cash.
  3. Accounts receivable.
  4. Provision for bad debts.
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29.
A trial balance is useful for which of the following purposes?
  1. Showing the financial situation of a business at a given date.
  2. Verifying that total debits equal total credits.
  3. Summarizing the changes in the owner's equity of a business.
  4. Ensuring that all account adjustments are entered correctly.
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30.
An accounting clerk at a business receives cash from customers and provides them with receipts. At the end of each day, the clerk posts the amount received to accounts receivable in the business's computerized accounting program. Which of the following changes to this routine would improve the business's internal controls over its cash flow?
  1. Informing customers that only checks or credit cards are acceptable to avoid manipulation of cash.
  2. Implementing computer safety devices such as firewalls to protect customers' personal information.
  3. Reminding the clerk of the business's code of ethics with regards to the manipulation of cash.
  4. Assigning a second employee to receive the cash from customers and provide receipts.
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