Question 1

Employers can use a wage bracket withholding table to compute federal income taxes withheld from each employee's gross pay.

Accepted Answer

A) True 
 B)False

Question 2

What are estimated liabilities? Provide at least two examples and explain why they are classified as estimated liabilities.

Accepted Answer

Estimated liabilities are known obligati

Question 3

A corporation has a $42,000 credit balance in the Income Tax Payable account.Period end information shows that the actual liability is $50,000.The company should record an entry to debit Income Tax Expense for $8,000 and credit Income Taxes Payable for $8,000.

Accepted Answer

A) True 
 B)False

Question 4

Payments of FUTA are made quarterly to a federal depository bank if the total amount due exceeds $1,000.

Accepted Answer

A) True 
 B)False

Question 5

Employers must pay FICA taxes that are equal to amount being withheld from their employees.

Accepted Answer

A) True 
 B)False

Question 6

An estimated liability:

Accepted Answer

A) Is an unknown liability of a certain amount 
B) Is a known obligation of an uncertain amount that can be reasonably estimated 
C) Is a liability that may occur if a future event occurs 
D) Can be the result of a lawsuit 
E) Is not recorded until the amount is known for certain 
A) Is an unknown liability of a certain amount 
B) Is a known obligation of an uncertain amount that can be reasonably estimated 
C) Is a liability that may occur if a future event occurs 
D) Can be the result of a lawsuit 
E) Is not recorded until the amount is known for certain

Question 7

Employers are required to pay local,state and federal payroll taxes.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Classify each of the following items as a: current liability,long-term liability or not a liability.

Accepted Answer

The answer of Classify each of the following items as...

Question 11

On June 1,2010,Martin Company signed a $25,000,120-day,6% note payable to cover a past due account payable.
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, 2010.

Accepted Answer

a.$25,000 x 0.06 x 120/360 = $500
b.
 \[

Question 12

If the times interest ratio:

Accepted Answer

A) Increases,then risk increases 
B) Increases,then risk decreases 
C) Is greater than 1.5,then the company is in default 
D) Is less than 1.5,the company is carrying too little debt 
E) Is greater than 1.5,the company is likely carrying too much debt 
A) Increases,then risk increases 
B) Increases,then risk decreases 
C) Is greater than 1.5,then the company is in default 
D) Is less than 1.5,the company is carrying too little debt 
E) Is greater than 1.5,the company is likely carrying too much debt

Question 13

An employee earned $3,450 for the current period.Calculate the total and individual amounts to be withheld for social security (6.2%),Medicare (1.45%)and federal income tax (15%)assuming the entire employee's pay is subject to FICA taxes.

Accepted Answer

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Question 14

A company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale.Warranty costs are estimated to be 6% of sales.During the month of June,the company performed warranty work and used $12,000 worth of parts for the warranty repairs.The total sales for June were equal to $450,000.
1.Record the warranty expense for the month of June.
2.Record the costs of the warranty work completed in June.
3.If the Estimated Warranty Liability account had a credit balance of $10,000 on May 31,what is the account balance at June 30?

Accepted Answer

1.
   3.$1

Question 15

If a company had income before interest and taxes in the amount of $2,345,540 and a times interest earned ratio of 5.2,what would be the total amount of the company's interest expense?

Accepted Answer

A) $451,065 
B) $320,185 
C) $121,968 
D) $275,840 
E) $230,000 
A) $451,065 
B) $320,185 
C) $121,968 
D) $275,840 
E) $230,000

Question 16

Match between columns
                        Premises:  Accrued wages payable
 Payroll taxes payable
 Lawsuit against the company
 Warranty on products sold this year
 Accounts payable
 Vacation benefits
 Property taxes payable
 Income taxes payable
 Unearned revenues
 Debt guarantees

Accepted Answer

The Answer of Contingent liability and Estimated liability and Current is...

Question 17

Employers must keep certain payroll records,including individual earnings reports for each employee.

Accepted Answer

A) True 
 B)False

Question 18

A company had income before interest expense and income taxes of $176,000 and its interest expense is $55,000.Calculate the company's times interest earned ratio.

Accepted Answer

$176,000/$

Question 19

When the times interest earned ratio declines,the likelihood of default on liabilities increases.

Accepted Answer

A) True 
 B)False

Question 20

The annual Federal Unemployment Tax Return is:

Accepted Answer

A) Form 940 
B) Form 1099 
C) Form 104 
D) Form W-2 
E) Form W-4 
A) Form 940 
B) Form 1099 
C) Form 104 
D) Form W-2 
E) Form W-4

Employers can use a wage bracket withholding table to compute federal income taxes withheld from each employee's gross pay.

What are estimated liabilities? Provide at least two examples and explain why they are classified as estimated liabilities.

A corporation has a $42,000 credit balance in the Income Tax Payable account.Period end information shows that the actual liability is $50,000.The company should record an entry to debit Income Tax Expense for $8,000 and credit Income Taxes Payable for $8,000.

Payments of FUTA are made quarterly to a federal depository bank if the total amount due exceeds $1,000.

Employers must pay FICA taxes that are equal to amount being withheld from their employees.

An estimated liability:

Employers are required to pay local,state and federal payroll taxes.

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

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

Classify each of the following items as a: current liability,long-term liability or not a liability.

If the times interest ratio:

An employee earned $3,450 for the current period.Calculate the total and individual amounts to be withheld for social security (6.2%),Medicare (1.45%)and federal income tax (15%)assuming the entire employee's pay is subject to FICA taxes.

If a company had income before interest and taxes in the amount of $2,345,540 and a times interest earned ratio of 5.2,what would be the total amount of the company's interest expense?

Employers must keep certain payroll records,including individual earnings reports for each employee.

A company had income before interest expense and income taxes of $176,000 and its interest expense is $55,000.Calculate the company's times interest earned ratio.

When the times interest earned ratio declines,the likelihood of default on liabilities increases.

The annual Federal Unemployment Tax Return is:

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

Employers can use a wage bracket withholding table to compute federal income taxes withheld from each employee's gross pay.

What are estimated liabilities? Provide at least two examples and explain why they are classified as estimated liabilities.

A corporation has a $42,000 credit balance in the Income Tax Payable account.Period end information shows that the actual liability is $50,000.The company should record an entry to debit Income Tax Expense for $8,000 and credit Income Taxes Payable for $8,000.

Payments of FUTA are made quarterly to a federal depository bank if the total amount due exceeds $1,000.

Employers must pay FICA taxes that are equal to amount being withheld from their employees.

An estimated liability:

Employers are required to pay local,state and federal payroll taxes.

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

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

Classify each of the following items as a: current liability,long-term liability or not a liability.

If the times interest ratio:

An employee earned $3,450 for the current period.Calculate the total and individual amounts to be withheld for social security (6.2%),Medicare (1.45%)and federal income tax (15%)assuming the entire employee's pay is subject to FICA taxes.

If a company had income before interest and taxes in the amount of $2,345,540 and a times interest earned ratio of 5.2,what would be the total amount of the company's interest expense?

Employers must keep certain payroll records,including individual earnings reports for each employee.

A company had income before interest expense and income taxes of $176,000 and its interest expense is $55,000.Calculate the company's times interest earned ratio.

When the times interest earned ratio declines,the likelihood of default on liabilities increases.

The annual Federal Unemployment Tax Return is:

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