Question 1

The journal entry to record the payment of an interest-bearing note is

Accepted Answer

A)  debit Cash; credit Notes Payable 
B)  debit Accounts Payable; credit Cash 
C)  debit Notes Payable and Interest Expense; credit Cash 
D)  debit Notes Payable and Interest Receivable; credit Cash 
A)  debit Cash; credit Notes Payable 
B)  debit Accounts Payable; credit Cash 
C)  debit Notes Payable and Interest Expense; credit Cash 
D)  debit Notes Payable and Interest Receivable; credit Cash

Question 2

Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?

Accepted Answer

A)  FICA tax rate 
B)  wage and tax statement 
C)  FUTA tax rate 
D)  wage bracket and withholding table 
A)  FICA tax rate 
B)  wage and tax statement 
C)  FUTA tax rate 
D)  wage bracket and withholding table

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

For Company A and Company B:
a) Calculate the quick ratio for each company.
b) Comment on which one is more able to meet current liabilities.

Accepted Answer

a) Company A Quick ratio: $42

Question 5

Match the following terms or phrases in a-g) with the explanations in 1-8. Terms or phrases may be used more than once.
-Cash + Temporary investments + Accounts receivable

Accepted Answer

A) Current ratio 
B) Working capital 
C) Quick assets 
D) Quick ratio 
E) Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements 
A) Current ratio 
B) Working capital 
C) Quick assets 
D) Quick ratio 
E) Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements

Question 6

The amount of federal income taxes withheld from an employee's gross pay is recorded as an)

Accepted Answer

A)  payroll expense 
B)  contra account 
C)  asset 
D)  liability 
A)  payroll expense 
B)  contra account 
C)  asset 
D)  liability

Question 7

Employers are required to compute and report payroll taxes on a calendar-year basis, even if a different fiscal year is used for financial reporting and income tax purposes.

Accepted Answer

A) True 
 B)False

Question 8

Zennia Company provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation cost is $135,000. The journal entry to record the adjusting entry required on December 31, the end of the current year, to record the current month's accrued vacation pay is

Accepted Answer

A)  $135,000 
B)  $67,500 
C)  $0 
D)  $11,250 
A)  $135,000 
B)  $67,500 
C)  $0 
D)  $11,250

Question 9

Assume that social security taxes are payable at a 6% rate and Medicare taxes are payable at a 1.5% rate with no maximum earnings, and that federal and state unemployment compensation taxes total 4.6% on the first $7,000 of earnings. If an employee earns $2,500 for the current week and the employee's year-to-date earnings before this week were $6,800, what is the total payroll taxes related to the current week?

Accepted Answer

A)  $187.50 
B)  $196.70 
C)  $344.50 
D)  $9.20 
A)  $187.50 
B)  $196.70 
C)  $344.50 
D)  $9.20

Question 10

The accounting for defined benefit plans is usually very easy and straightforward.

Accepted Answer

A) True 
 B)False

Question 11

List five internal controls that relate directly to payroll.

Accepted Answer

All of the cash payment controls.
Proper

Question 12

Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing note payable matures, total payment will be

Accepted Answer

A)  $51,125 
B)  $54,500 
C)  $1,125 
D)  $4,500 
A)  $51,125 
B)  $54,500 
C)  $1,125 
D)  $4,500

Question 13

Use the following key a-d) to identify the proper treatment of each contingent liability.
-Event is reasonably possible but amount is not estimable

Accepted Answer

A) Record only 
B) Record and disclose 
C) Disclose only 
D) Do not record or disclose 
A) Record only 
B) Record and disclose 
C) Disclose only 
D) Do not record or disclose

Question 14

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

Accepted Answer

A) True 
 B)False

The journal entry to record the payment of an interest-bearing note is

Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?

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

For Company A and Company B: a) Calculate the quick ratio for each company. b) Comment on which one is more able to meet current liabilities.

Match the following terms or phrases in a-g) with the explanations in 1-8. Terms or phrases may be used more than once. -Cash + Temporary investments + Accounts receivable

The amount of federal income taxes withheld from an employee's gross pay is recorded as an)

Employers are required to compute and report payroll taxes on a calendar-year basis, even if a different fiscal year is used for financial reporting and income tax purposes.

The accounting for defined benefit plans is usually very easy and straightforward.

List five internal controls that relate directly to payroll.

Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing note payable matures, total payment will be

Use the following key a-d) to identify the proper treatment of each contingent liability. -Event is reasonably possible but amount is not estimable

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

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Exam 10: Current Liabilities and Payroll

The journal entry to record the payment of an interest-bearing note is

Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?

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

For Company A and Company B: a) Calculate the quick ratio for each company. b) Comment on which one is more able to meet current liabilities.

Match the following terms or phrases in a-g) with the explanations in 1-8. Terms or phrases may be used more than once. -Cash + Temporary investments + Accounts receivable

The amount of federal income taxes withheld from an employee's gross pay is recorded as an)

Employers are required to compute and report payroll taxes on a calendar-year basis, even if a different fiscal year is used for financial reporting and income tax purposes.

The accounting for defined benefit plans is usually very easy and straightforward.

List five internal controls that relate directly to payroll.

Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing note payable matures, total payment will be

Use the following key a-d) to identify the proper treatment of each contingent liability. -Event is reasonably possible but amount is not estimable

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

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