Exam 10: Current Liabilities and Payroll

Current liabilities are

Most employers are required to withhold from employees which of the following employment taxes?

Which statement below is not a determinate in calculating the amount of federal income taxes withheld from an individuals pay?

Carmen Flores' weekly gross earnings for the week ending Dec. 7th were $2,500, and her federal income tax withholding was $525. Prior to this week Flores had earned $99,000 for the year. Assuming the social security rate is 6% on the first $100,000 of annual earnings and Medicare is 1.5% of all earnings, what is Flores' net pay?

Which of the following is not an internal control procedure for payroll?

Mobile Co. issued a $45,000, 60-day, discounted note to Guarantee Bank. The discount rate is 6%. At maturity, assuming a 360-day year, the borrower will pay:

Which of the following will have no effect on an employee's take-home pay?

Assuming a 360-day year, when a $30,000, 90-day, 5% interest-bearing note payable matures, total payment will amount to:

When a borrower receives the face amount of a discounted note less interest, this amount is known as:

One of the more popular defined contribution plans is the 401k plan.

On June 8, Alton Co. issued an $80,000, 6%, 120-day note payable to Seller Co. What is the due date of the note?

A defined contribution plan promises employees a fixed annual pension benefit.

Which of the following is the most desirable quick ratio?

An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $110; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. What is the net amount to be paid the employee?

Generally, all deductions made from an employee's gross pay are required by law.

Payroll entries are made with data from the

An employee receives an hourly rate of $40, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; social security tax rate, 6.0% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings. What is the gross pay for the employee?

Which of the following is an example of a variable component of a payroll system?

For a current liability to exist, the following two tests must be met. The liability must be due usually within a year and must be paid out of current assets.

Use the following information to answer the following questions. Assuming no employees are subject to ceilings for their earnings, Jensen Company has the following information for the pay period of January 15 - 31, 20xx. Salaries Payable would be recorded in the amount of: