Exam 8: Completing the Operating Cycle

Property taxes are usually assessed by county or city governments based on a company's

Which of the following types of advertising is typically capitalized?

Which of the following taxes must be paid by both the employee and the employer?

On December 31, 2012, Johnson Corporation reported total revenue of $750,000 and total expenses of $425,000. Johnson had 4,000 shares of stocks outstanding. Also, as of January 1, 2012, Johnson had issued stock options that allowed employees to receive 1,000 shares of stock for free at a time of their choosing in the future. As of December 31, none of these stock options had been exercised. What is basic earnings per share for Johnson Corporation?

The yearly increase in the pension obligation associated with work done during the year is the

During the first week of January, Nathan Mills earned $800. Assume that FICA taxes are 7.65 percent of wages up to $50,000; state unemployment tax is 5.0 percent of wages up to $13,000; and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Nathan has voluntary withholdings of $40 (in addition to taxes) and that federal and state income tax withholdings are $72 and $24, respectively. What is the employer's payroll tax expense for the week, assuming that Nathan Mills is the only employee?

Diluted earnings per share includes stock transactions that might occur in the future such as

Income taxes shown on the income statement are based on

A severance package would best be termed a

Earnings per share is NOT calculated on which of the following amounts?

Bristol Company's accounting records contained the following information for a current year:

Eldora, Inc. paid property taxes of $16,500 on June 30, 2012, for the period July 1, 2012, to June 30, 2013, and debited prepaid property tax expense. Eldora, Inc. uses a fiscal year end of September 30 for financial purposes. What journal entry should be made to recognize property tax expense for the period October 1, 2012, to June 30, 2013?

Romulus Corporation incurred the following losses during 2012: Assuming that Romulus has a 40% income tax rate, what amount of net loss should Romulus report as extraordinary on its annual income statement?

Marino, Inc. makes a sale and collects a total of $378, which includes an 8 percent sales tax. The amount credited to Sales Tax Payable is

A pension fund is "under-funded" when the

Accounting rules give specific instructions on whether to expense or capitalize research and development costs and advertising costs. List the rules associated with these two costs.

A cash compensation received by an employee after that employee has retired is a(n)

The following information relates to the defined benefit pension plan of Wendy Corporation for the year ending December 31, 2012: What is the net pension asset or liability for Wendy corporation in 2012?

Which of the following items would NOT be classified in the "Other Revenues and Expenses" section of the income statement?

No disclosure is required for contingent liabilities that are