Exam 10: Current Liabilities, Payroll, and Long-Term Liabilities

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A company has 24 employees who are paid on a monthly basis. For the most recent month, gross earnings were $78,000, of which $27,000 is subject to employment taxes. The federal unemployment tax rate is .8% and the state unemployment rate is 5.4%. Federal income taxes are withheld at the rate of 20% of total earnings. All earnings are subject to FICA taxes of 8%. Which of the following is included in the entry to record payroll taxes?

(Multiple Choice)

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Question 21

Archie's had sales of $6,758. The state sales tax rate is 7%. All sales are cash. What amount will be credited to Sales revenue?

(Multiple Choice)

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Question 22

Which of the following is NOT an optional deduction?

(Multiple Choice)

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Question 23

Which of the following occurs when accrued interest is accrued on a note payable at year-end?

(Multiple Choice)

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Question 24

Where would sales tax payable appear?

(Multiple Choice)

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Question 25

Which of the following deductions must be matched by the employer, resulting in an expense to the employer?

(Multiple Choice)

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Question 26

A $12,500, 9% note is dated April 9 and is due in 90 days. The note will mature on what date?

(Multiple Choice)

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Question 27

Which of the following is the source of the information to record salary expense for the period?

(Multiple Choice)

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Question 28

Which of the following are taxes paid by the employer?

(Multiple Choice)

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Question 29

For which of the following taxes is there a ceiling on the amount of annual earnings subject to the tax?

(Multiple Choice)

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Question 30

Which of the following is an advantage of issuing stock rather than issuing bonds?

(Multiple Choice)

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Question 31

Which of the following is a reason that many companies maintain a human resources department?

(Multiple Choice)

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Question 32

Which of the following is NOT one of the factors used to determine withheld income tax?

(Multiple Choice)

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Question 33

A contingent liability that will probably become an actual liability must be estimated and recorded as an expense.

(True/False)

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Question 34

Which of the following forms is used to determine the number of exemptions claimed by an employee for purposes of determining the amount of income taxes withheld?

(Multiple Choice)

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Question 35

To which of the following would a company have an account payable?

(Multiple Choice)

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Question 36

An employer must file Form 941 with the federal government.

(True/False)

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Question 37

Good internal control for payroll requires that the human resources department distribute paychecks to the employees.

(True/False)

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Question 38

Which of the following is an advantage of issuing bonds rather than issuing stock?

(Multiple Choice)

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Question 39

Employers must have their W-2s in the mail for their employees:

(Multiple Choice)

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Question 40

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Exam 10: Current Liabilities, Payroll, and Long-Term Liabilities

Archie's had sales of $6,758. The state sales tax rate is 7%. All sales are cash. What amount will be credited to Sales revenue?

Which of the following is NOT an optional deduction?

Which of the following occurs when accrued interest is accrued on a note payable at year-end?

Where would sales tax payable appear?

Which of the following deductions must be matched by the employer, resulting in an expense to the employer?

A $12,500, 9% note is dated April 9 and is due in 90 days. The note will mature on what date?

Which of the following is the source of the information to record salary expense for the period?

Which of the following are taxes paid by the employer?

For which of the following taxes is there a ceiling on the amount of annual earnings subject to the tax?

Which of the following is an advantage of issuing stock rather than issuing bonds?

Which of the following is a reason that many companies maintain a human resources department?

Which of the following is NOT one of the factors used to determine withheld income tax?

A contingent liability that will probably become an actual liability must be estimated and recorded as an expense.

Which of the following forms is used to determine the number of exemptions claimed by an employee for purposes of determining the amount of income taxes withheld?

To which of the following would a company have an account payable?

An employer must file Form 941 with the federal government.

Good internal control for payroll requires that the human resources department distribute paychecks to the employees.

Which of the following is an advantage of issuing bonds rather than issuing stock?

Employers must have their W-2s in the mail for their employees:

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Management Accounting

Job Order and Process Costing

Appendix: Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

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