Question 1

Vacation benefits is an example of a known liability.

Accepted Answer

A) True 
 B)False

Question 2

Match the following items with the appropriate designation (Current liability, Long-term liability, or Not a liability) .
-Debt guarantees

Accepted Answer

A)  Long-term liability
B)  Not a liability
C)  Current liabilityD) B) and C)
E) A) and C)

Question 3

The difference between the amount received from issuing a note payable and the amount repaid at maturity is referred to as:

Accepted Answer

A)   Interest.
B)   Principal.
C)   Face Value.
D)   Cash.
E)   Accounts Payable.F) B) and C)
G) B) and E)

Question 4

Obligations to be paid within one year or the company's operating cycle,whichever is longer,are:

Accepted Answer

A)   Current assets.
B)   Current liabilities.
C)   Earned revenues.
D)   Operating cycle liabilities.
E)   Bills.F) A) and E)
G) B) and E) B

Question 5

Match each of the following terms with the appropriate definitions.
-A seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

Accepted Answer

A)  Short-term note payable
B)  Deferred income tax liability
C)  Current liabilities
D)  Warranty
E)  Employee benefitsF) Federal depository bankG) Payroll registerH) Gross payI) Payroll bank accountJ) Times interest earnedK) A) and F)
L) A) and J)

Question 6

________ are probable future payments of assets or services that a company is presently obligated to make as a result of past transactions or events.

Accepted Answer

The answer of ________ are probable future payments of assets...

Question 7

Match each of the following terms with the appropriate definitions.
-A special bank account used solely for paying employees; each pay period an amount equal to the total employees' net pay is deposited and the employees' payroll checks are drawn on that account.

Accepted Answer

A)  Short-term note payable
B)  Deferred income tax liability
C)  Current liabilities
D)  Warranty
E)  Employee benefitsF) Federal depository bankG) Payroll registerH) Gross payI) Payroll bank accountJ) Times interest earnedK) H) and J)
L) D) and F)

Question 8

Match each of the following terms with the appropriate definitions.
-Obligations of a company requiring payment in more than one year or operating cycle.

Accepted Answer

A)  Long-term liability
B)  Warranty
C)  FUTA taxes
D)  FICA taxes
E)  Contingent liabilityF) Net payG) Withholding allowanceH) Estimated liabilityI) Merit ratingJ) Wage bracket withholding tableK) E) and H)
L) A) and D)

Question 9

Gross pay less all deductions is called ________.

Accepted Answer

The answer of Gross pay less all deductions is called...

Question 10

A payroll register does not include:

Accepted Answer

A)   Pay period dates.
B)   Hours worked.
C)   Gross pay and net pay.
D)   Deductions.
E)   Prior year's earningsF) A) and E)
G) C) and E) E

Question 11

On May 22,Jarrett Company borrows $7,500 from Fairmont Financing,signing a 90-day,8%,$7,500 note.What is the journal entry needed to record the transaction by Jarrett Company?

Accepted Answer

A)   Debit Cash $7,500; credit Accounts Payable $7,500.
B)   Debit Accounts Payable $7,500; credit Notes Payable $7,500.
C)   Debit Cash $7,650; credit Notes Payable $7,650.
D)   Debit Cash $7,500; credit Notes Payable $7,500.
E)   Debit Notes Receivable $7,500; credit Cash $7,500.F) A) and B)
G) C) and D)

Question 12

Obligations due within one year or the company's operating cycle,whichever is longer,are ________.

Accepted Answer

The answer of Obligations due within one year or the...

Question 13

An employee earnings report is a cumulative record of each employee's hours worked,gross earnings,deductions,and net pay.

Accepted Answer

A) True 
 B)False

Question 14

Employers can use a wage bracket withholding table to compute federal income taxes withheld from each employee's gross pay.

Accepted Answer

A) True 
 B)False

Question 15

Match the following items with the appropriate designation (Estimated liability, Contingent liability, or Known liability) .
-Payroll taxes payable

Accepted Answer

A)  Contingent liability
B)  Estimated liability
C)  Known liabilityD) All of the above
E) B) and C)  C

Question 16

Banks authorized to accept deposits of amounts payable to the federal government,including amounts due for payroll taxes are ________.

Accepted Answer

federal de...

Question 17

Match each of the following terms with the appropriate definitions.
-Obligations due within one year or the company's operating cycle,whichever is longer.

Accepted Answer

A)  Short-term note payable
B)  Deferred income tax liability
C)  Current liabilities
D)  Warranty
E)  Employee benefitsF) Federal depository bankG) Payroll registerH) Gross payI) Payroll bank accountJ) Times interest earnedK) E) and F)
L) C) and D)

Question 18

Trey Morgan is an employee who is paid monthly.For the month of January of the current year,he earned a total of $4,538.The FICA tax for social security is 6.2% of the first $118,500 earned each calendar year,and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the employer.The amount of federal income tax withheld from his earnings was $680.70.
-What is the total amount of taxes withheld from the Trey's earnings?

Accepted Answer

A)   $1,375.02
B)   $746.50
C)   $962.06
D)   $1,027.86
E)   $680.70F) B) and E)
G) B) and D)

Question 19

Employers' responsibilities for payroll do not include:

Accepted Answer

A)   Providing each employee with an annual report of his or her wages subject to FICA and federal income taxes along with the amount of these taxes withheld.
B)   Filing Form 941, the Employer's Quarterly Federal Tax Return.
C)   Filing Form 940, the Annual Federal Unemployment Tax Return.
D)   Maintaining individual earnings records for each employee.
E)   Recording an expense for the employee Federal Income Tax withholding.F) A) and C)
G) A) and B)

Question 20

Calculate the total amount of FICA withholding for an employee whose pay is $2,400 for the first pay period of the year.The tax rate for FICA-Social Security is 6.2% and the tax rate for FICA-Medicare is 1.45%.

Accepted Answer

Social Sec...

Exam 9: Accounting for Current Liabilities

Vacation benefits is an example of a known liability.

Correct Answer
verified

Match the following items with the appropriate designation (Current liability, Long-term liability, or Not a liability) . -Debt guarantees

Correct Answer
verified

The difference between the amount received from issuing a note payable and the amount repaid at maturity is referred to as:

Correct Answer
verified

Obligations to be paid within one year or the company's operating cycle,whichever is longer,are:

Correct Answer
verified
B

Match each of the following terms with the appropriate definitions. -A seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

Correct Answer
verified

________ are probable future payments of assets or services that a company is presently obligated to make as a result of past transactions or events.

Correct Answer
verified

Match each of the following terms with the appropriate definitions. -A special bank account used solely for paying employees; each pay period an amount equal to the total employees' net pay is deposited and the employees' payroll checks are drawn on that account.

Correct Answer
verified

Match each of the following terms with the appropriate definitions. -Obligations of a company requiring payment in more than one year or operating cycle.

Correct Answer
verified

Gross pay less all deductions is called ________.

Correct Answer
verified

A payroll register does not include:

Correct Answer
verified
E

On May 22,Jarrett Company borrows $7,500 from Fairmont Financing,signing a 90-day,8%,$7,500 note.What is the journal entry needed to record the transaction by Jarrett Company?

Correct Answer
verified

Obligations due within one year or the company's operating cycle,whichever is longer,are ________.

Correct Answer
verified

An employee earnings report is a cumulative record of each employee's hours worked,gross earnings,deductions,and net pay.

Correct Answer
verified

Employers can use a wage bracket withholding table to compute federal income taxes withheld from each employee's gross pay.

Correct Answer
verified

Match the following items with the appropriate designation (Estimated liability, Contingent liability, or Known liability) . -Payroll taxes payable

Correct Answer
verified
C

Banks authorized to accept deposits of amounts payable to the federal government,including amounts due for payroll taxes are ________.

Correct Answer
verified
federal de...
View Answer

Match each of the following terms with the appropriate definitions. -Obligations due within one year or the company's operating cycle,whichever is longer.

Correct Answer
verified

Correct Answer
verified

Employers' responsibilities for payroll do not include:

Correct Answer
verified

Calculate the total amount of FICA withholding for an employee whose pay is $2,400 for the first pay period of the year.The tax rate for FICA-Social Security is 6.2% and the tax rate for FICA-Medicare is 1.45%.

Correct Answer
verified
Social Sec...
View Answer

Exam 9: Accounting for Current Liabilities

Vacation benefits is an example of a known liability.

Correct AnswerverifiedShow Answer

Match the following items with the appropriate designation (Current liability, Long-term liability, or Not a liability) . -Debt guarantees

Correct AnswerverifiedShow Answer

The difference between the amount received from issuing a note payable and the amount repaid at maturity is referred to as:

Correct AnswerverifiedShow Answer

Obligations to be paid within one year or the company's operating cycle,whichever is longer,are:

Correct AnswerverifiedB

Match each of the following terms with the appropriate definitions. -A seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

Correct AnswerverifiedShow Answer

________ are probable future payments of assets or services that a company is presently obligated to make as a result of past transactions or events.

Correct AnswerverifiedShow Answer

Match each of the following terms with the appropriate definitions. -A special bank account used solely for paying employees; each pay period an amount equal to the total employees' net pay is deposited and the employees' payroll checks are drawn on that account.

Correct AnswerverifiedShow Answer

Match each of the following terms with the appropriate definitions. -Obligations of a company requiring payment in more than one year or operating cycle.

Correct AnswerverifiedShow Answer

Gross pay less all deductions is called ________.

Correct AnswerverifiedShow Answer

A payroll register does not include:

Correct AnswerverifiedE

On May 22,Jarrett Company borrows $7,500 from Fairmont Financing,signing a 90-day,8%,$7,500 note.What is the journal entry needed to record the transaction by Jarrett Company?

Correct AnswerverifiedShow Answer

Obligations due within one year or the company's operating cycle,whichever is longer,are ________.

Correct AnswerverifiedShow Answer

An employee earnings report is a cumulative record of each employee's hours worked,gross earnings,deductions,and net pay.

Correct AnswerverifiedShow Answer

Employers can use a wage bracket withholding table to compute federal income taxes withheld from each employee's gross pay.

Correct AnswerverifiedShow Answer

Match the following items with the appropriate designation (Estimated liability, Contingent liability, or Known liability) . -Payroll taxes payable

Correct Answerverified C

Banks authorized to accept deposits of amounts payable to the federal government,including amounts due for payroll taxes are ________.

Correct Answerverifiedfederal de...View AnswerShow Answer

Match each of the following terms with the appropriate definitions. -Obligations due within one year or the company's operating cycle,whichever is longer.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Employers' responsibilities for payroll do not include:

Correct AnswerverifiedShow Answer

Calculate the total amount of FICA withholding for an employee whose pay is $2,400 for the first pay period of the year.The tax rate for FICA-Social Security is 6.2% and the tax rate for FICA-Medicare is 1.45%.

Correct AnswerverifiedSocial Sec...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
E

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified
federal de...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Social Sec...
View Answer