Question 1

Payroll is usually paid with a check or with the use of an electronic funds transfer.

Accepted Answer

A) True 
 B)False  True

Question 2

Maryland Company offers a bonus plan to its employees equal to 3% of net income.Maryland's net income is expected to be $960,000.The amount of the employee bonus expense is estimated to be

Accepted Answer

A) $27,961 
B) $28,800 
C) $29,000 
D) $29,691 
E) $30,000 
A) $27,961 
B) $28,800 
C) $29,000 
D) $29,691 
E) $30,000 A

Question 3

Obligations not expected to be paid within one year (or the company's operating cycle if longer than one year) are reported as:

Accepted Answer

A) Current assets 
B) Current liabilities 
C) Long-term liabilities 
D) Operating cycle liabilities 
E) Bills 
A) Current assets 
B) Current liabilities 
C) Long-term liabilities 
D) Operating cycle liabilities 
E) Bills C

Question 4

On October 10,2013,Printfast Company sells a commercial printer for $2,350 with a one-year warranty that covers parts.Warranty expense is projected to be 4% of sales.On February 28,2014,the printer requires repairs.The cost of the parts for the repair is $80 and Printfast pays their technician $150 to perform the repair.
-What is the warranty liability for this printer at the end of 2013?

Accepted Answer

A) $49.00 
B) $84.80 
C) $94.00 
D) $0,there is no liability at the end of 2013 
E) $230.00 
A) $49.00 
B) $84.80 
C) $94.00 
D) $0,there is no liability at the end of 2013 
E) $230.00

Question 5

A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle,whichever is longer.

Accepted Answer

A) True 
 B)False

Question 6

Known liabilities are obligations set by agreements,contracts,or laws and are measurable and definitely determinable.

Accepted Answer

A) True 
 B)False

Question 7

Cooper Company borrows $785,100 cash on November 1,2013,by signing a 120-day,8% note.What amount of interest expense should Cooper recognize in 2013?

Accepted Answer

The answer of Cooper Company borrows $785,100 cash on November...

Question 8

Social security payments are made up of Social Security taxes and Medicare taxes.

Accepted Answer

A) True 
 B)False

Question 9

An employee earned $47,000 during the year working for an employer.The FICA tax for social security is 6.2%,and the FICA tax for Medicare is 1.45%.The employee's share of FICA taxes is:

Accepted Answer

A) $681.50. 
B) $2,914.00. 
C) $3,595.50. 
D) $7,191.00. 
E) Zero,since the employee's pay exceeds the FICA limit. 
A) $681.50. 
B) $2,914.00. 
C) $3,595.50. 
D) $7,191.00. 
E) Zero,since the employee's pay exceeds the FICA limit.

Question 10

A liability does not exist if there is any uncertainty about whom to pay,when to pay,or how much to pay.

Accepted Answer

A) True 
 B)False

Question 11

Coca-Cola had income before interest expense and income taxes of $5,698 million and interest expense of $199 million.Calculate Coca-Cola's times interest earned ratio.

Accepted Answer

The answer of Coca-Cola had income before interest expense and...

Question 12

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

Accepted Answer

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

Question 13

A company's income before interest expense and income taxes is $302,400 and its interest expense is $72,000.Calculate the company's times interest earned ratio.

Accepted Answer

$302,400/$

Question 14

Federal depository banks are authorized to accept deposits of amounts payable to the federal government.

Accepted Answer

A) True 
 B)False

Question 15

When the number of withholding allowances increases,the amount of income tax withheld increases.

Accepted Answer

A) True 
 B)False

Question 16

On June 1,2013,Martin Company signed a $25,000,120-day,6% note payable to cover a past due account payable.This company uses a calendar year to report financial activity.
a.What is the total amount of interest to be paid on this note?
b.Prepare Martin Company's general journal entry to record the issuance of the note payable,
c.Prepare Martin Company's general journal entry to record the payment of the note on
September 29,2013 assuming no adjusting entries have been made since this note was first issued.

Accepted Answer

a.$25,000 x 0.06 x 120/360 = $

Question 17

The Edgartown Company borrowed $480,000 on December 1,2014.The note,which is due in 60 days,included interest at 8%.The company's fiscal year ends on December 31.How would the company record the adjusting entry relating to this note at December 31,2014?

Accepted Answer

A) Debit Interest Expense for $38,400 and credit Interest Payable for $38,400. 
B) Debit Interest Expense for $6,400 and credit Interest Payable for $6,400. 
C) Debit Interest Expense for $3,200 and credit Interest Payable for $3,200. 
D) Debit Notes Payable for $483,200 and credit Cash for $483,200. 
E) Debit Interest Expense for $3,200 and credit Cash for $3,200. 
A) Debit Interest Expense for $38,400 and credit Interest Payable for $38,400. 
B) Debit Interest Expense for $6,400 and credit Interest Payable for $6,400. 
C) Debit Interest Expense for $3,200 and credit Interest Payable for $3,200. 
D) Debit Notes Payable for $483,200 and credit Cash for $483,200. 
E) Debit Interest Expense for $3,200 and credit Cash for $3,200.

Question 18

______________________ is the total compensation an employee earns including wages,salaries,commissions,bonuses,and any compensation earned before deductions such as taxes.

Accepted Answer

The answer of ______________________ is the total compensation an employee...

Question 19

______________ are amounts owed to suppliers for products or services purchased on credit.

Accepted Answer

Trade acco

Question 20

Vacation benefits are a form of estimated liabilities for an employer.

Accepted Answer

A) True 
 B)False

Payroll is usually paid with a check or with the use of an electronic funds transfer.

Maryland Company offers a bonus plan to its employees equal to 3% of net income.Maryland's net income is expected to be $960,000.The amount of the employee bonus expense is estimated to be

Obligations not expected to be paid within one year (or the company's operating cycle if longer than one year) are reported as:

A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle,whichever is longer.

Known liabilities are obligations set by agreements,contracts,or laws and are measurable and definitely determinable.

Cooper Company borrows $785,100 cash on November 1,2013,by signing a 120-day,8% note.What amount of interest expense should Cooper recognize in 2013?

Social security payments are made up of Social Security taxes and Medicare taxes.

An employee earned $47,000 during the year working for an employer.The FICA tax for social security is 6.2%,and the FICA tax for Medicare is 1.45%.The employee's share of FICA taxes is:

A liability does not exist if there is any uncertainty about whom to pay,when to pay,or how much to pay.

Coca-Cola had income before interest expense and income taxes of $5,698 million and interest expense of $199 million.Calculate Coca-Cola's times interest earned ratio.

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

A company's income before interest expense and income taxes is $302,400 and its interest expense is $72,000.Calculate the company's times interest earned ratio.

Federal depository banks are authorized to accept deposits of amounts payable to the federal government.

When the number of withholding allowances increases,the amount of income tax withheld increases.

The Edgartown Company borrowed $480,000 on December 1,2014.The note,which is due in 60 days,included interest at 8%.The company's fiscal year ends on December 31.How would the company record the adjusting entry relating to this note at December 31,2014?

______________________ is the total compensation an employee earns including wages,salaries,commissions,bonuses,and any compensation earned before deductions such as taxes.

______________ are amounts owed to suppliers for products or services purchased on credit.

Vacation benefits are a form of estimated liabilities for an employer.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 9: Reporting and Analyzing Current Liabilities

Payroll is usually paid with a check or with the use of an electronic funds transfer.

Maryland Company offers a bonus plan to its employees equal to 3% of net income.Maryland's net income is expected to be $960,000.The amount of the employee bonus expense is estimated to be

Obligations not expected to be paid within one year (or the company's operating cycle if longer than one year) are reported as:

A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle,whichever is longer.

Known liabilities are obligations set by agreements,contracts,or laws and are measurable and definitely determinable.

Cooper Company borrows $785,100 cash on November 1,2013,by signing a 120-day,8% note.What amount of interest expense should Cooper recognize in 2013?

Social security payments are made up of Social Security taxes and Medicare taxes.

An employee earned $47,000 during the year working for an employer.The FICA tax for social security is 6.2%,and the FICA tax for Medicare is 1.45%.The employee's share of FICA taxes is:

A liability does not exist if there is any uncertainty about whom to pay,when to pay,or how much to pay.

Coca-Cola had income before interest expense and income taxes of $5,698 million and interest expense of $199 million.Calculate Coca-Cola's times interest earned ratio.

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

A company's income before interest expense and income taxes is $302,400 and its interest expense is $72,000.Calculate the company's times interest earned ratio.

Federal depository banks are authorized to accept deposits of amounts payable to the federal government.

When the number of withholding allowances increases,the amount of income tax withheld increases.

The Edgartown Company borrowed $480,000 on December 1,2014.The note,which is due in 60 days,included interest at 8%.The company's fiscal year ends on December 31.How would the company record the adjusting entry relating to this note at December 31,2014?

______________________ is the total compensation an employee earns including wages,salaries,commissions,bonuses,and any compensation earned before deductions such as taxes.

______________ are amounts owed to suppliers for products or services purchased on credit.

Vacation benefits are a form of estimated liabilities for an employer.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters