Question 1

Explain why the cost of employing someone is more than just the wage or salary paid to the employee.

Accepted Answer

The cost of employing an individual incl

Question 2

Second National Bank computes interest semiannually.If the annualized interest rate (APR)is currently 6 percent,the amount deposited today should be multiplied by which future value factor to calculate the amount that will accumulate by the end of 10 years?

Accepted Answer

A) 20 periods at 12 percent 
B) 20 periods at 3 percent 
C) 10 periods at 6 percent 
D) 10 periods at 3 percent 
A) 20 periods at 12 percent 
B) 20 periods at 3 percent 
C) 10 periods at 6 percent 
D) 10 periods at 3 percent

Question 3

A commitment is a legal obligation that meets the technical requirements for recognition as a liability.

Accepted Answer

A) True 
 B)False

Question 4

Calculate answers to the following scenarios.
a. Jackson Company purchased machinery by executing a $50,000 non-interest-bearing note due in four years.Assuming the going rate for similar notes is 6 percent and using the appropriate present value table,for how much should the machinery be recorded?
b. Wendy Kwon is making bank deposits of $3,000 at the beginning of each year for three years for purposes of buying a car.Assuming an interest rate of 7 percent compounded annually,how much will she have saved for the purchase at the end of year 3? (Calculate manually and round to the nearest dollar.)
c. Ashton Jones would like to make a lump-sum deposit today so that he can withdraw $15,000 at the end of each year for the next three years.Assuming a 9 percent interest rate and using the appropriate present value table,what should she invest today?

Accepted Answer

a.$39,600 [50,000 × 0.792 (PV

Question 5

The proposed purchase price of an asset should be compared to the present value of the benefits it will generate over its useful life.

Accepted Answer

A) True 
 B)False

Question 6

Current liabilities are classified as either definitely determinable liabilities or contingent liabilities.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following most likely is a definitely determinable liability during interim periods?

Accepted Answer

A) Estimated property tax payable 
B) Accrued interest payable 
C) Estimated product warranty liability 
D) Estimated income taxes payable 
A) Estimated property tax payable 
B) Accrued interest payable 
C) Estimated product warranty liability 
D) Estimated income taxes payable

Question 8

There is no limit to the amount of income subject to the FUTA tax.

Accepted Answer

A) True 
 B)False

Question 9

Days' payable is the shortest in which of the following industries?

Accepted Answer

A) Grocery stores 
B) Computers 
C) Machinery 
D) Auto and home supply 
A) Grocery stores 
B) Computers 
C) Machinery 
D) Auto and home supply

Question 10

If a state unemployment tax is imposed,then the federal unemployment tax is not imposed.

Accepted Answer

A) True 
 B)False

Question 11

The payables turnover is the number of times,on average,that a company pays its accounts payable in an accounting period.

Accepted Answer

A) True 
 B)False

Question 12

You win the grand prize and can choose between receiving $100,000 today or $20,000 per year for seven years.Ignoring income taxes,how would you go about making your decision?

Accepted Answer

The present value of the $20,000 annuity

Question 13

Which of the following is a measure of liquidity?

Accepted Answer

A) payables turnover 
B) the current ratio 
C) working capital 
D) All of these are used to evaluate a company's liquidity. 
A) payables turnover 
B) the current ratio 
C) working capital 
D) All of these are used to evaluate a company's liquidity.

Question 14

The amount recorded for Payroll Taxes and Benefits Expense is borne entirely by the employee.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following most likely is an example of an accrued liability?

Accepted Answer

A) Interest payable 
B) Accounts payable 
C) Current portion of long-term debt 
D) Sales tax payable 
A) Interest payable 
B) Accounts payable 
C) Current portion of long-term debt 
D) Sales tax payable

Question 16

A liability for dividends exists only when the board of stockholders requests them.

Accepted Answer

A) True 
 B)False

Question 17

The theoretical value of an asset is the future value of its expected benefits.

Accepted Answer

A) True 
 B)False

Question 18

The classification of a liability as current or long-term is not important to the evaluation of a company's liquidity.

Accepted Answer

A) True 
 B)False

Question 19

Working capital equals current assets divided by current liabilities.

Accepted Answer

A) True 
 B)False

Question 20

Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company:
  The entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for

Accepted Answer

A) $2,496. 
B) $1,100. 
C) $1,596. 
D) $496. 
A) $2,496. 
B) $1,100. 
C) $1,596. 
D) $496.

Explain why the cost of employing someone is more than just the wage or salary paid to the employee.

Second National Bank computes interest semiannually.If the annualized interest rate (APR)is currently 6 percent,the amount deposited today should be multiplied by which future value factor to calculate the amount that will accumulate by the end of 10 years?

A commitment is a legal obligation that meets the technical requirements for recognition as a liability.

The proposed purchase price of an asset should be compared to the present value of the benefits it will generate over its useful life.

Current liabilities are classified as either definitely determinable liabilities or contingent liabilities.

Which of the following most likely is a definitely determinable liability during interim periods?

There is no limit to the amount of income subject to the FUTA tax.

Days' payable is the shortest in which of the following industries?

If a state unemployment tax is imposed,then the federal unemployment tax is not imposed.

The payables turnover is the number of times,on average,that a company pays its accounts payable in an accounting period.

You win the grand prize and can choose between receiving $100,000 today or $20,000 per year for seven years.Ignoring income taxes,how would you go about making your decision?

Which of the following is a measure of liquidity?

The amount recorded for Payroll Taxes and Benefits Expense is borne entirely by the employee.

Which of the following most likely is an example of an accrued liability?

A liability for dividends exists only when the board of stockholders requests them.

The theoretical value of an asset is the future value of its expected benefits.

The classification of a liability as current or long-term is not important to the evaluation of a company's liquidity.

Working capital equals current assets divided by current liabilities.

Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company: The entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters

Exam 11: Current Liabilities and Fair Value Accounting

Explain why the cost of employing someone is more than just the wage or salary paid to the employee.

Second National Bank computes interest semiannually.If the annualized interest rate (APR)is currently 6 percent,the amount deposited today should be multiplied by which future value factor to calculate the amount that will accumulate by the end of 10 years?

A commitment is a legal obligation that meets the technical requirements for recognition as a liability.

The proposed purchase price of an asset should be compared to the present value of the benefits it will generate over its useful life.

Current liabilities are classified as either definitely determinable liabilities or contingent liabilities.

Which of the following most likely is a definitely determinable liability during interim periods?

There is no limit to the amount of income subject to the FUTA tax.

Days' payable is the shortest in which of the following industries?

If a state unemployment tax is imposed,then the federal unemployment tax is not imposed.

The payables turnover is the number of times,on average,that a company pays its accounts payable in an accounting period.

You win the grand prize and can choose between receiving $100,000 today or $20,000 per year for seven years.Ignoring income taxes,how would you go about making your decision?

Which of the following is a measure of liquidity?

The amount recorded for Payroll Taxes and Benefits Expense is borne entirely by the employee.

Which of the following most likely is an example of an accrued liability?

A liability for dividends exists only when the board of stockholders requests them.

The theoretical value of an asset is the future value of its expected benefits.

The classification of a liability as current or long-term is not important to the evaluation of a company's liquidity.

Working capital equals current assets divided by current liabilities.

Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company: The entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters