Question 1

Current maturities of long-term debt

Accepted Answer

A)  require an adjusting entry. 
B)  are optionally reported on the balance sheet. 
C)  can be properly classified during balance sheet preparation, with no adjusting entry required. 
D)  are not considered to be current liabilities. 
A)  require an adjusting entry. 
B)  are optionally reported on the balance sheet. 
C)  can be properly classified during balance sheet preparation, with no adjusting entry required. 
D)  are not considered to be current liabilities. C

Question 2

Gross pay, or earnings, is the total compensation earned by an employee.

Accepted Answer

A) True 
 B)False  True

Question 3

Under ASPE, a contingent liability is defined as a liability that is contingent on the occurrence or non-occurrence of some future event.

Accepted Answer

A) True 
 B)False  True

Question 4

When an interest-bearing note matures, the balance in the Notes Payable account is

Accepted Answer

A)  less than the total amount repaid by the borrower. 
B)  the difference between the maturity value of the note and the face value of the note. 
C)  equal to the total amount repaid by the borrower. 
D)  greater than the total amount repaid by the borrower. 
A)  less than the total amount repaid by the borrower. 
B)  the difference between the maturity value of the note and the face value of the note. 
C)  equal to the total amount repaid by the borrower. 
D)  greater than the total amount repaid by the borrower.

Question 5

Which of the following is NOT considered an estimated liability?

Accepted Answer

A)  accrued wages 
B)  gift card promotions 
C)  warranties 
D)  customer loyalty programs 
A)  accrued wages 
B)  gift card promotions 
C)  warranties 
D)  customer loyalty programs

Question 6

Which of the following is NOT an example of an estimated liability?

Accepted Answer

A)  contingencies 
B)  employee benefits 
C)  payroll deductions 
D)  warranties 
A)  contingencies 
B)  employee benefits 
C)  payroll deductions 
D)  warranties

Question 7

On the income statement, employee benefits expense is combined with

Accepted Answer

A)  sales revenue. 
B)  salaries and wages expense. 
C)  cost of goods sold. 
D)  employers benefits expense. 
A)  sales revenue. 
B)  salaries and wages expense. 
C)  cost of goods sold. 
D)  employers benefits expense.

Question 8

HST (harmonized sales tax) collected by a retailer is recorded by

Accepted Answer

A)  crediting HST Recoverable. 
B)  debiting HST Expense. 
C)  crediting HST Payable. 
D)  debiting HST Payable. 
A)  crediting HST Recoverable. 
B)  debiting HST Expense. 
C)  crediting HST Payable. 
D)  debiting HST Payable.

Question 9

Employer payroll costs will include both the gross wages of employees plus the employer costs of benefits.

Accepted Answer

A) True 
 B)False

Question 10

All of the following are definitely determinable liabilities EXCEPT

Accepted Answer

A)  current maturities of long-term debt. 
B)  operating lines of credit. 
C)  a future commitment to purchase an asset. 
D)  accounts payable. 
A)  current maturities of long-term debt. 
B)  operating lines of credit. 
C)  a future commitment to purchase an asset. 
D)  accounts payable.

Question 11

A $15,000, 9-month, 8% note payable requires an interest payment of $900 at maturity if no interest was previously paid.

Accepted Answer

A) True 
 B)False

Question 12

CPP and EI and income tax deductions are remitted to the CRA, usually on a quarterly basis.

Accepted Answer

A) True 
 B)False

Question 13

The amount of income tax withheld from an individual's payroll is determined by three variables. Which one of the following is NOT a variable?

Accepted Answer

A)  employees net pay 
B)  number of income tax deductions claimed by the employee 
C)  length of the pay period 
D)  employees gross pay 
A)  employees net pay 
B)  number of income tax deductions claimed by the employee 
C)  length of the pay period 
D)  employees gross pay

Question 14

Cameron Company sells 2,000 units of its product for $500 each in 2017. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $100 per unit. In 2017, warranty contracts are honoured on 40 units for a total cost of $4,000. What amount will be reported on Cameron Company's balance sheet as Estimated Warranty Liability on December 31, 2017?

Accepted Answer

A)  $4,000 
B)  $6,000 
C)  $2,000 
D)  cannot be determined 
A)  $4,000 
B)  $6,000 
C)  $2,000 
D)  cannot be determined

Question 15

Product warranties are promises made by the ___ to repair or replace the product if it is defective or does not perform as intended.

Accepted Answer

A)  buyer 
B)  employees 
C)  manufacturer 
D)  government 
A)  buyer 
B)  employees 
C)  manufacturer 
D)  government

Question 16

Employee contributions under the Canada Pension Act are 4.95% of pensionable earnings. Pensionable earnings deduct a basic yearly exemption of $3,500 and impose a maximum ceiling of $53,600. Marco earns $1,000 per week. What amount of CPP will be deducted each week from Marco's pay?

Accepted Answer

A)  $49.50 
B)  $46.17 
C)  $2,306.70 
D)  $44.36 
A)  $49.50 
B)  $46.17 
C)  $2,306.70 
D)  $44.36

Question 17

It is possible to have a prepaid property tax and a property tax expense payable recorded at the same time.

Accepted Answer

A) True 
 B)False

Question 18

On December 31, 2017, Indiglow Company has a five-year note payable of $450,000. Of that balance, $90,000 will be paid within one year from the balance sheet date. How much of the note payable should Indiglow Company report as a long term liability when they prepare the December 31, 2017 statement of financial position?

Accepted Answer

A)  $360,000 
B)  $450,000 
C)  $90,000 
D)  $540,000 
A)  $360,000 
B)  $450,000 
C)  $90,000 
D)  $540,000

Question 19

Warranties are also known as

Accepted Answer

A)  determinable liabilities. 
B)  customer loyalty programs. 
C)  contingencies. 
D)  guarantees. 
A)  determinable liabilities. 
B)  customer loyalty programs. 
C)  contingencies. 
D)  guarantees.

Question 20

The deduction that is paid equally by the employer and employee is the

Accepted Answer

A)  federal income tax. 
B)  Workplace Health, Safety and Compensation Plan deduction. 
C)  Employment Insurance (EI) deduction. 
D)  Canada or Quebec Pension Plan deduction. 
A)  federal income tax. 
B)  Workplace Health, Safety and Compensation Plan deduction. 
C)  Employment Insurance (EI) deduction. 
D)  Canada or Quebec Pension Plan deduction.

Current maturities of long-term debt

Gross pay, or earnings, is the total compensation earned by an employee.

Under ASPE, a contingent liability is defined as a liability that is contingent on the occurrence or non-occurrence of some future event.

When an interest-bearing note matures, the balance in the Notes Payable account is

Which of the following is NOT considered an estimated liability?

Which of the following is NOT an example of an estimated liability?

On the income statement, employee benefits expense is combined with

HST (harmonized sales tax) collected by a retailer is recorded by

Employer payroll costs will include both the gross wages of employees plus the employer costs of benefits.

All of the following are definitely determinable liabilities EXCEPT

A $15,000, 9-month, 8% note payable requires an interest payment of $900 at maturity if no interest was previously paid.

CPP and EI and income tax deductions are remitted to the CRA, usually on a quarterly basis.

The amount of income tax withheld from an individual's payroll is determined by three variables. Which one of the following is NOT a variable?

Product warranties are promises made by the ___ to repair or replace the product if it is defective or does not perform as intended.

Employee contributions under the Canada Pension Act are 4.95% of pensionable earnings. Pensionable earnings deduct a basic yearly exemption of $3,500 and impose a maximum ceiling of $53,600. Marco earns $1,000 per week. What amount of CPP will be deducted each week from Marco's pay?

It is possible to have a prepaid property tax and a property tax expense payable recorded at the same time.

Warranties are also known as

The deduction that is paid equally by the employer and employee is the

Accounting in Action

The Recording Process

Adjusting the Accounts

Completion of the Accounting Cycle

Inventory Costing

Internal Control and Cash

Accounting for Receivables

Long-Lived Assets

Filters

Exam 10: Current Liabilities and Payroll

Current maturities of long-term debt

Gross pay, or earnings, is the total compensation earned by an employee.

Under ASPE, a contingent liability is defined as a liability that is contingent on the occurrence or non-occurrence of some future event.

When an interest-bearing note matures, the balance in the Notes Payable account is

Which of the following is NOT considered an estimated liability?

Which of the following is NOT an example of an estimated liability?

On the income statement, employee benefits expense is combined with

HST (harmonized sales tax) collected by a retailer is recorded by

Employer payroll costs will include both the gross wages of employees plus the employer costs of benefits.

All of the following are definitely determinable liabilities EXCEPT

A $15,000, 9-month, 8% note payable requires an interest payment of $900 at maturity if no interest was previously paid.

CPP and EI and income tax deductions are remitted to the CRA, usually on a quarterly basis.

The amount of income tax withheld from an individual's payroll is determined by three variables. Which one of the following is NOT a variable?

Product warranties are promises made by the ___ to repair or replace the product if it is defective or does not perform as intended.

Employee contributions under the Canada Pension Act are 4.95% of pensionable earnings. Pensionable earnings deduct a basic yearly exemption of $3,500 and impose a maximum ceiling of $53,600. Marco earns $1,000 per week. What amount of CPP will be deducted each week from Marco's pay?

It is possible to have a prepaid property tax and a property tax expense payable recorded at the same time.

Warranties are also known as

The deduction that is paid equally by the employer and employee is the

Accounting in Action

The Recording Process

Adjusting the Accounts

Completion of the Accounting Cycle

Inventory Costing

Internal Control and Cash

Accounting for Receivables

Long-Lived Assets

Filters