Question 1

Identify and discuss the factors involved in computing federal income taxes for employees.

Accepted Answer

The amount of federal income tax withhel

Question 2

A liability is a probable future payment of assets or services that a company is currently obligated to make as a result of past transactions or events.

Accepted Answer

A) True 
 B)False

Question 3

Obligations due to be paid within one year or within the company's operating cycle,whichever is longer,are:

Accepted Answer

A) Current assets 
B) Current liabilities 
C) Earned revenues 
D) Operating cycle liabilities 
E) Bills 
A) Current assets 
B) Current liabilities 
C) Earned revenues 
D) Operating cycle liabilities 
E) Bills

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Accounts payable:

Accepted Answer

A) Are amounts owed to suppliers for products and/or services purchased on credit 
B) Are long-term liabilities 
C) Are estimated liabilities 
D) Do not include specific due dates 
E) Must be paid within 30 days 
A) Are amounts owed to suppliers for products and/or services purchased on credit 
B) Are long-term liabilities 
C) Are estimated liabilities 
D) Do not include specific due dates 
E) Must be paid within 30 days

Question 6

Gross pay is:

Accepted Answer

A) Take-home pay 
B) Total compensation earned by an employee before any deductions 
C) Salaries after taxes are deducted 
D) Deductions withheld by an employer 
E) The amount of the paycheck 
A) Take-home pay 
B) Total compensation earned by an employee before any deductions 
C) Salaries after taxes are deducted 
D) Deductions withheld by an employer 
E) The amount of the paycheck

Question 7

A company had a fixed interest expense of $6,000,its income before interest expense and any income taxes was $18,000 and its net income was $8,400.The company's times interest earned ratio is equals to

Accepted Answer

A) 0.33 
B) 0.71 
C) 1.40 
D) 3.00 
E) 12,000 
A) 0.33 
B) 0.71 
C) 1.40 
D) 3.00 
E) 12,000

Question 8

Identify and explain the types of employer payroll taxes.

Accepted Answer

Employers are required to make matching

Question 9

The times interest earned ratio is calculated by dividing income before interest expense and income taxes by interest expense.

Accepted Answer

A) True 
 B)False

Question 10

Most employees and employers are required to pay:

Accepted Answer

A) Local payroll taxes 
B) State payroll taxes 
C) Federal payroll taxes 
D) Both B and C only 
E) Local,state and federal payroll taxes 
A) Local payroll taxes 
B) State payroll taxes 
C) Federal payroll taxes 
D) Both B and C only 
E) Local,state and federal payroll taxes

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

What is a short-term note payable? Explain the accounting issues related to notes payable.

Accepted Answer

A note payable is a written promise to p

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

On October 10,2010,Printfast Company sells a commercial printer for $2,350 with a one year warranty that covers parts.Warranty expense is project to be 4% of sales.On February 28,2011,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 at the end of 2011?

Accepted Answer

A) $14.00 
B) $84.80 
C) $94.00 
D) $0,there is no expense at the end of 2011 
E) $230.00 
A) $14.00 
B) $84.80 
C) $94.00 
D) $0,there is no expense at the end of 2011 
E) $230.00

Question 15

_________________ 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 16

A _____________________ is a seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

Accepted Answer

The answer of A _____________________ is a seller's obligation to...

Question 17

On December 1,Martin Company signed a $5,000 3-month 6% note payable,with the principle plus interest due on March 1 of the following year.What amount of interest expense is accrued at December 31 on the note?

Accepted Answer

A) $0 
B) $25 
C) $50 
D) $75 
E) $300 
A) $0 
B) $25 
C) $50 
D) $75 
E) $300

Question 18

Mission Company has three employees:
$\begin{array}{lcc}
&\text { Gross Pay through July}&\text {  Gross Pay for August }\
\text { Smith } & \$ 3,200 & \$ 1,000 \
\text { Cain } & 25,800 & 3,500 \
 \text { Clark } & 94,600 & 13,100
\end{array}$

$\text { The company is subject to the following taxes: }$

$\begin{array} { l c l } \text { Tax } & \text { Rate } & \text { Applied To } \ \text { FICA-Social Security } & 6 . 2 0 \%  & \text { First } \$ 106,800 \ \text { FICA-Medicare } & 1.45 & \text { All grosspay } \ \text { FUTA } & . 8 0& \text { First } \$ 7,000 \ \text { SUTA } & 5.40 & \text { First } \$ 7,000 \end{array}$

What is Mission Company's amount for payroll taxes for Cain?

Accepted Answer

A) $ 1,705.95 
B) $1,973.70 
C) $2,241.45 
D) $267.75 
E) $484.75 
A) $ 1,705.95 
B) $1,973.70 
C) $2,241.45 
D) $267.75 
E) $484.75

Question 19

Accounting for contingent liabilities covers three categories.(1)The future event is probable and the amount cannot be reasonably estimated.(2)The future event is remote or unlikely to recur.(3)The likelihood of the liability to occur is impossible.

Accepted Answer

A) True 
 B)False

Question 20

A table that shows the amount of federal income tax to be withheld from an employee's pay is the:

Accepted Answer

A) Form 941 
B) Tax table 
C) Wage bracket withholding table 
D) W-2 
E) W-4 
A) Form 941 
B) Tax table 
C) Wage bracket withholding table 
D) W-2 
E) W-4

Identify and discuss the factors involved in computing federal income taxes for employees.

A liability is a probable future payment of assets or services that a company is currently obligated to make as a result of past transactions or events.

Obligations due to be paid within one year or within the company's operating cycle,whichever is longer,are:

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

Accounts payable:

Gross pay is:

A company had a fixed interest expense of $6,000,its income before interest expense and any income taxes was $18,000 and its net income was $8,400.The company's times interest earned ratio is equals to

Identify and explain the types of employer payroll taxes.

The times interest earned ratio is calculated by dividing income before interest expense and income taxes by interest expense.

Most employees and employers are required to pay:

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

What is a short-term note payable? Explain the accounting issues related to notes payable.

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

_________________ 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 _____________________ is a seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

On December 1,Martin Company signed a $5,000 3-month 6% note payable,with the principle plus interest due on March 1 of the following year.What amount of interest expense is accrued at December 31 on the note?

Accounting for contingent liabilities covers three categories.(1)The future event is probable and the amount cannot be reasonably estimated.(2)The future event is remote or unlikely to recur.(3)The likelihood of the liability to occur is impossible.

A table that shows the amount of federal income tax to be withheld from an employee's pay is the:

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing 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

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters

Exam 9: Reporting and Analyzing Current Liabilities

Identify and discuss the factors involved in computing federal income taxes for employees.

A liability is a probable future payment of assets or services that a company is currently obligated to make as a result of past transactions or events.

Obligations due to be paid within one year or within the company's operating cycle,whichever is longer,are:

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

Accounts payable:

Gross pay is:

A company had a fixed interest expense of $6,000,its income before interest expense and any income taxes was $18,000 and its net income was $8,400.The company's times interest earned ratio is equals to

Identify and explain the types of employer payroll taxes.

The times interest earned ratio is calculated by dividing income before interest expense and income taxes by interest expense.

Most employees and employers are required to pay:

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

What is a short-term note payable? Explain the accounting issues related to notes payable.

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

_________________ 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 _____________________ is a seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

On December 1,Martin Company signed a $5,000 3-month 6% note payable,with the principle plus interest due on March 1 of the following year.What amount of interest expense is accrued at December 31 on the note?

Accounting for contingent liabilities covers three categories.(1)The future event is probable and the amount cannot be reasonably estimated.(2)The future event is remote or unlikely to recur.(3)The likelihood of the liability to occur is impossible.

A table that shows the amount of federal income tax to be withheld from an employee's pay is the:

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing 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

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters