Question 1

The adjusting entry that would be made at the year-end accruing the interest expense of $100 on a note is:

Accepted Answer

A)  Interest Expense 100
Notes payable 100 
B)  Interest Payable 100
Interest Expense 100 
C)  Interest Expense 100
Interest Payable 100 
D)  Notes payable 100
Interest Expense 100 
A)  Interest Expense 100
Notes payable 100 
B)  Interest Payable 100
Interest Expense 100 
C)  Interest Expense 100
Interest Payable 100 
D)  Notes payable 100
Interest Expense 100

Question 2

Dorothy wishes to deposit an amount into her savings account that will enable her to withdraw $1,500 per year for the next five years.She should deposit $1,500,multiplied by the

Accepted Answer

A)  present value of a single sum factor. 
B)  present value of an ordinary annuity factor. 
C)  future value of a single sum factor. 
D)  future value of an ordinary annuity factor. 
A)  present value of a single sum factor. 
B)  present value of an ordinary annuity factor. 
C)  future value of a single sum factor. 
D)  future value of an ordinary annuity factor.

Question 3

The most common examples of commitments are leases and purchase agreements.

Accepted Answer

A) True 
 B)False

Question 4

A company places $20,000 into a money market account for four months.The account is expected to pay 9 percent annual interest,compounded monthly.After one month,the entry to record interest earned is:

Accepted Answer

A)  Short-Term Investments 150
Interest Income 150 
B)  Cash 150
Interest Income 150 
C)  Interest Income 150
Cash 150 
D)  Cash 150
Interest Receivable 150 
A)  Short-Term Investments 150
Interest Income 150 
B)  Cash 150
Interest Income 150 
C)  Interest Income 150
Cash 150 
D)  Cash 150
Interest Receivable 150

Question 5

Current liabilities are classified as either definitely determinable liabilities or estimated liabilities.

Accepted Answer

A) True 
 B)False

Question 6

An employee has gross earnings of $1,200 and withholdings of $91.80 for social security and Medicare taxes and $120 for income taxes.The employer pays $91.80 for social security and Medicare taxes and $9.60 for FUTA.The total cost of this employee to the employer is

Accepted Answer

A)  $1,301.40. 
B)  $1,200.00. 
C)  $1,393.20. 
D)  $1,209.60. 
A)  $1,301.40. 
B)  $1,200.00. 
C)  $1,393.20. 
D)  $1,209.60.

Question 7

Potential vacation pay should be accounted for as a contingent liability.

Accepted Answer

A) True 
 B)False

Question 8

The costs associated with coupons and rebates are usually reflected in liability accounts.

Accepted Answer

A) True 
 B)False

Question 9

What would be the adjusting entry for a note payable whose interest is not included in the face amount of the note?

Accepted Answer

A)  Debit Interest Receivable and credit Interest Income. 
B)  Debit Interest Expense and credit Cash. 
C)  Debit Interest Expense and credit Interest Payable. 
D)  Debit Cash and credit Notes Payable. 
A)  Debit Interest Receivable and credit Interest Income. 
B)  Debit Interest Expense and credit Cash. 
C)  Debit Interest Expense and credit Interest Payable. 
D)  Debit Cash and credit Notes Payable.

Question 10

All of the following are estimated liabilities except

Accepted Answer

A)  liability for vacation pay. 
B)  payroll liabilities. 
C)  product warranty liability. 
D)  property tax liability. 
A)  liability for vacation pay. 
B)  payroll liabilities. 
C)  product warranty liability. 
D)  property tax liability.

Question 11

A business accepts a 9 percent,$25,000 note due in 120 days.Assuming simple interest,how much (amount rounded)will the business receive when the note falls due?

Accepted Answer

A)  $25,000 
B)  $25,075 
C)  $25,740 
D)  $27,260 
A)  $25,000 
B)  $25,075 
C)  $25,740 
D)  $27,260

Question 12

Seacrest Company purchased a machine on January 2,2013.Under the terms of the purchase agreement,the company is required to make 14 quarterly installment payments of $29,000 each,beginning April 1,2013.Assuming that the interest rate is 16 percent compounded quarterly,determine the purchase price of the machine.Use future value and/or present value tables in calculating your answer.

Accepted Answer

Purchase price = $29

Question 13

First City Bank computes interest semiannually.If the interest rate is currently 6 percent per annum,the amount deposited today should be multiplied by which future value factor to calculate the amount that will accumulate by the end of 10 years?

Accepted Answer

A)  20 periods at 12 percent 
B)  20 periods at 3 percent 
C)  10 periods at 6 percent 
D)  10 periods at 3 percent 
A)  20 periods at 12 percent 
B)  20 periods at 3 percent 
C)  10 periods at 6 percent 
D)  10 periods at 3 percent

Question 14

Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company:
  The entry to record the accrual of federal unemployment tax (assume FUTA tax of .8 percent)would include a

Accepted Answer

A)  credit to Federal Unemployment Tax Payable for $64. 
B)  debit to Federal Unemployment Tax Payable for $64. 
C)  debit to FUTA Tax Expense for $64. 
D)  credit to Payroll Taxes and Benefits Expense for $64. 
A)  credit to Federal Unemployment Tax Payable for $64. 
B)  debit to Federal Unemployment Tax Payable for $64. 
C)  debit to FUTA Tax Expense for $64. 
D)  credit to Payroll Taxes and Benefits Expense for $64.

Question 15

Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company:
  The journal entry to record the monthly payroll on July 31 would include a

Accepted Answer

A)  debit to Salaries Expense for $24,000. 
B)  debit to Salaries Payable for $24,000. 
C)  credit to Salaries Payable for $24,000. 
D)  debit to Salaries Expense for $17,000. 
A)  debit to Salaries Expense for $24,000. 
B)  debit to Salaries Payable for $24,000. 
C)  credit to Salaries Payable for $24,000. 
D)  debit to Salaries Expense for $17,000.

Question 16

Use this information to answer the following question.   Payroll Taxes and Benefits Expense would be recorded for

Accepted Answer

A)  $3,672. 
B)  $6,648. 
C)  $12,048. 
D)  $2,976. 
A)  $3,672. 
B)  $6,648. 
C)  $12,048. 
D)  $2,976.

Question 17

The days' payable shows how long,on average,a company takes to pay its accounts payable.

Accepted Answer

A) True 
 B)False

Question 18

The following totals for the month of March were taken from the payroll register of the Foothill Company:
   Prepare journal entries without explanations to record the following.Round amounts to the nearest dollar. 
a.Monthly payroll
b.Accrual of employer's payroll taxes (assuming the social security and Medicare taxes to be equal to the amount for employees,a FUTA tax of .8 percent,and a state unemployment tax of 5.4 percent)

Accepted Answer

The answer of The following totals for the month of...

Question 19

All of the following can be employee payroll withholdings except

Accepted Answer

A)  state income taxes. 
B)  medical insurance premium payments. 
C)  social security tax. 
D)  state unemployment tax. 
A)  state income taxes. 
B)  medical insurance premium payments. 
C)  social security tax. 
D)  state unemployment tax.

Question 20

Of a company's employees,50 percent typically qualify to receive two weeks' paid vacation a year in 50 working weeks.The entry to record the amount of estimated liability for vacation pay for a week in which the total payroll is $2,900

Accepted Answer

A)  Estimated Liability for Vacation Pay 116
Cash 116 
B)  Vacation Pay Expense 232
Cash 232 
C)  Vacation Pay Expense 58
Estimated Liability for Vacation Pay 58 
D)  Cash 29
Estimated Liability for Vacation Pay 29 
A)  Estimated Liability for Vacation Pay 116
Cash 116 
B)  Vacation Pay Expense 232
Cash 232 
C)  Vacation Pay Expense 58
Estimated Liability for Vacation Pay 58 
D)  Cash 29
Estimated Liability for Vacation Pay 29

The adjusting entry that would be made at the year-end accruing the interest expense of $100 on a note is:

Dorothy wishes to deposit an amount into her savings account that will enable her to withdraw $1,500 per year for the next five years.She should deposit $1,500,multiplied by the

The most common examples of commitments are leases and purchase agreements.

A company places $20,000 into a money market account for four months.The account is expected to pay 9 percent annual interest,compounded monthly.After one month,the entry to record interest earned is:

Current liabilities are classified as either definitely determinable liabilities or estimated liabilities.

An employee has gross earnings of $1,200 and withholdings of $91.80 for social security and Medicare taxes and $120 for income taxes.The employer pays $91.80 for social security and Medicare taxes and $9.60 for FUTA.The total cost of this employee to the employer is

Potential vacation pay should be accounted for as a contingent liability.

The costs associated with coupons and rebates are usually reflected in liability accounts.

What would be the adjusting entry for a note payable whose interest is not included in the face amount of the note?

All of the following are estimated liabilities except

A business accepts a 9 percent,$25,000 note due in 120 days.Assuming simple interest,how much (amount rounded)will the business receive when the note falls due?

First City Bank computes interest semiannually.If the interest rate is currently 6 percent per annum,the amount deposited today should be multiplied by which future value factor to calculate the amount that will accumulate by the end of 10 years?

Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company: The entry to record the accrual of federal unemployment tax (assume FUTA tax of .8 percent)would include a

Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company: The journal entry to record the monthly payroll on July 31 would include a

Use this information to answer the following question. Payroll Taxes and Benefits Expense would be recorded for

The days' payable shows how long,on average,a company takes to pay its accounts payable.

All of the following can be employee payroll withholdings except

Of a company's employees,50 percent typically qualify to receive two weeks' paid vacation a year in 50 working weeks.The entry to record the amount of estimated liability for vacation pay for a week in which the total payroll is $2,900

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters

Exam 9: Current Liabilities and Fair Value Accounting

The adjusting entry that would be made at the year-end accruing the interest expense of $100 on a note is:

Dorothy wishes to deposit an amount into her savings account that will enable her to withdraw $1,500 per year for the next five years.She should deposit $1,500,multiplied by the

The most common examples of commitments are leases and purchase agreements.

A company places $20,000 into a money market account for four months.The account is expected to pay 9 percent annual interest,compounded monthly.After one month,the entry to record interest earned is:

Current liabilities are classified as either definitely determinable liabilities or estimated liabilities.

An employee has gross earnings of $1,200 and withholdings of $91.80 for social security and Medicare taxes and $120 for income taxes.The employer pays $91.80 for social security and Medicare taxes and $9.60 for FUTA.The total cost of this employee to the employer is

Potential vacation pay should be accounted for as a contingent liability.

The costs associated with coupons and rebates are usually reflected in liability accounts.

What would be the adjusting entry for a note payable whose interest is not included in the face amount of the note?

All of the following are estimated liabilities except

A business accepts a 9 percent,$25,000 note due in 120 days.Assuming simple interest,how much (amount rounded)will the business receive when the note falls due?

First City Bank computes interest semiannually.If the interest rate is currently 6 percent per annum,the amount deposited today should be multiplied by which future value factor to calculate the amount that will accumulate by the end of 10 years?

Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company: The entry to record the accrual of federal unemployment tax (assume FUTA tax of .8 percent)would include a

Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company: The journal entry to record the monthly payroll on July 31 would include a

Use this information to answer the following question. Payroll Taxes and Benefits Expense would be recorded for

The days' payable shows how long,on average,a company takes to pay its accounts payable.

All of the following can be employee payroll withholdings except

Of a company's employees,50 percent typically qualify to receive two weeks' paid vacation a year in 50 working weeks.The entry to record the amount of estimated liability for vacation pay for a week in which the total payroll is $2,900

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters