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Match Each of the Following Terms with the Appropriate Definitions

Question 137

Matching

Match each of the following terms with the appropriate definitions.

Premises:

Responses:

Deferred income tax liability

A record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay and deductions

Gross pay

Income before interest expense and income taxes divided by interest expense

Federal depository bank

Total compensation earned by an employee

Short-term note payable

Payments of income taxes that are deferred until future years because of temporary differences between GAAP and tax accounting rules

Warranty

Additional compensation paid to or on behalf of employees, such as premiums for medical insurance and contributions to pension plans

Payroll register

A bank authorized to accept deposits of amounts payable to the federal government, including payroll taxes

Current liabilities

Obligations due within one year or the company's operating cycle, whichever is longer

Employee benefits

A written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer

Payroll bank account

A special bank account used solely for paying employees; each pay period an amount equal to the total employees' net pay is deposited and the employees' payroll checks are drawn on that account

Times interest earned

A seller's obligation to repair or replace a product or service that fails to perform as expected within a specified period

Premises:

Deferred income tax liability

Gross pay

Federal depository bank

Short-term note payable

Warranty

Payroll register

Current liabilities

Employee benefits

Payroll bank account

Times interest earned

Responses:

A record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay and deductions

Income before interest expense and income taxes divided by interest expense

Total compensation earned by an employee

Payments of income taxes that are deferred until future years because of temporary differences between GAAP and tax accounting rules

Additional compensation paid to or on behalf of employees, such as premiums for medical insurance and contributions to pension plans

A bank authorized to accept deposits of amounts payable to the federal government, including payroll taxes

Obligations due within one year or the company's operating cycle, whichever is longer

A written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer

A special bank account used solely for paying employees; each pay period an amount equal to the total employees' net pay is deposited and the employees' payroll checks are drawn on that account

A seller's obligation to repair or replace a product or service that fails to perform as expected within a specified period

Correct Answer:

Premises:

Responses:

Deferred income tax liability

Gross pay

Federal depository bank

Short-term note payable

Warranty

Payroll register

Current liabilities

Employee benefits

Payroll bank account

Times interest earned