Use this information to answer the following question. $\begin{array}{lrlr} \text { Gross payroll } & \$ 16,000 & \text { Federal income taxes withheld } & \$ 1,800 \\ \text { Social security and Medicare rate } & 7.65 \% & \text { Federal unemployment tax rate } & .8 \%\\ \\ \text { State unemployment tax rate}&5.4 \% \end{array}$ Payroll Taxes and Benefits Expense would be recorded for

A) $1,224. B) $2,216. C) $4,016. D) $992. A) $1,224. B) $2,216. C) $4,016. D) $992.

Use this information to answer the following question. Baker Company has the following information for the pay period of January 1-15,2010.Payment occurs on January 20. $\begin{array}{lrlr} \text { Gross payroll } & \$ 16,000 & \text { Federal income taxes withheld } & \$ 1,800 \\ \text { Social security and Medicare rate } & 7.65 \% & \text { Federal unemployment tax rate } & .8 \%\\ \\ \text { State unemployment tax rate}&5.4 \% \end{array}$ The entry to record the payroll would include a

A) debit to Salaries Payable for the net amount. B) credit to State Unemployment Tax Payable. C) debit to Salaries Expense for the amount paid to the employees. D) debit to Salaries Expense for the gross payroll. A) debit to Salaries Payable for the net amount. B) credit to State Unemployment Tax Payable. C) debit to Salaries Expense for the amount paid to the employees. D) debit to Salaries Expense for the gross payroll.

Exam 8: Current Liabilities and Fair Value Accounting

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A company wishes to make annual contributions into a fund intended to retire $400,000 in debt five years from now.The amount to contribute each year equals $400,000

(Multiple Choice)

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Question 161

Lines of credit from the bank need not be disclosed in the financial statements or in the notes.

(True/False)

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Question 162

A liability must never be classified as current if it is due in more than one year.

(True/False)

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Question 163

The owner of an amusement park is considering installing a new ride.The ride would cost $10,000,produce a net cash flow of $1,250 annually,and last for nine years. a. Assuming an interest rate of 10 percent, what is the present value of the net cash flows expected from the ride? Use future value and/or present value tables in calculating your answer. Round amounts to the nearest dollar. b. Should the ride be purchased?

(Essay)

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Question 164

Which of the following taxes is not subject to a maximum amount per employee per year?

(Multiple Choice)

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Question 165

Which of the following is not a component of the operating cycle?

(Multiple Choice)

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Question 166

When accounting for property taxes,which of the following accounts normally would not be credited?

(Multiple Choice)

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Question 167

Use this information to answer the following question. Gross payroll \ 16,000 Federal income taxes withheld \ 1,800 Social security and Medicare rate 7.65\% Federal unemployment tax rate .8\% State unemployment tax rate 5.4\% Payroll Taxes and Benefits Expense would be recorded for

(Multiple Choice)

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Question 168

The classification of a liability as current or long-term is important because it may affect the evaluation of a company's liquidity.

(True/False)

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Question 169

Wages are compensation of employees at a yearly or monthly rate.

(True/False)

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Question 170

The amount of property tax payable is usually an estimated liability for a portion of the year.

(True/False)

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Question 171

An employee has gross earnings of $600 and withholdings of $45.90 for social security and Medicare taxes and $60 for income taxes.The employer pays $45.90 for social security and Medicare taxes and $4.80 for FUTA.The total cost of this employee to the employer is

(Multiple Choice)

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Question 172

When a company discounts a note receivable at the bank,it has a contingent liability.

(True/False)

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Question 173

Which of the following does not represent a liability?

(Multiple Choice)

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Question 174

Total payroll for a given week is $12,000.If 70 percent of the company's employees typically qualify to receive two weeks' paid vacation per year,assuming 50 working weeks,the entry to record the estimated liability for vacation pay for the week is:

(Multiple Choice)

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Question 175

Because accounting measures should be verifiable,liabilities should not be estimated.

(True/False)

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Question 176

Dividends Payable is an example of a(n)

(Multiple Choice)

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Question 177

Heidi wishes to deposit an amount into her savings account that will enable her to withdraw $800 per year for the next four years.She should deposit $800,multiplied by the

(Multiple Choice)

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Question 178

The product warranty liability is an example of an estimated liability.

(True/False)

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Question 179

Use this information to answer the following question. Baker Company has the following information for the pay period of January 1-15,2010.Payment occurs on January 20. Gross payroll \ 16,000 Federal income taxes withheld \ 1,800 Social security and Medicare rate 7.65\% Federal unemployment tax rate .8\% State unemployment tax rate 5.4\% The entry to record the payroll would include a

(Multiple Choice)

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Question 180

Showing 161 - 180 of 187

Exam 8: Current Liabilities and Fair Value Accounting

A company wishes to make annual contributions into a fund intended to retire $400,000 in debt five years from now.The amount to contribute each year equals $400,000

Lines of credit from the bank need not be disclosed in the financial statements or in the notes.

A liability must never be classified as current if it is due in more than one year.

Which of the following taxes is not subject to a maximum amount per employee per year?

Which of the following is not a component of the operating cycle?

When accounting for property taxes,which of the following accounts normally would not be credited?

Use this information to answer the following question. Gross payroll \ 16,000 Federal income taxes withheld \ 1,800 Social security and Medicare rate 7.65\% Federal unemployment tax rate .8\% State unemployment tax rate 5.4\% Payroll Taxes and Benefits Expense would be recorded for

The classification of a liability as current or long-term is important because it may affect the evaluation of a company's liquidity.

Wages are compensation of employees at a yearly or monthly rate.

The amount of property tax payable is usually an estimated liability for a portion of the year.

An employee has gross earnings of $600 and withholdings of $45.90 for social security and Medicare taxes and $60 for income taxes.The employer pays $45.90 for social security and Medicare taxes and $4.80 for FUTA.The total cost of this employee to the employer is

When a company discounts a note receivable at the bank,it has a contingent liability.

Which of the following does not represent a liability?

Total payroll for a given week is $12,000.If 70 percent of the company's employees typically qualify to receive two weeks' paid vacation per year,assuming 50 working weeks,the entry to record the estimated liability for vacation pay for the week is:

Because accounting measures should be verifiable,liabilities should not be estimated.

Dividends Payable is an example of a(n)

Heidi wishes to deposit an amount into her savings account that will enable her to withdraw $800 per year for the next four years.She should deposit $800,multiplied by the

The product warranty liability is an example of an estimated liability.

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

Contributed Capital

Investments

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

The Changing Business Environment - a Managers Perspective

Cost Concepts and Cost Allocation

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Value-Based Systems- Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions,incltarget Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

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