Question 1

The full disclosure principle requires the reporting of contingent liabilities that are reasonably possible.

Accepted Answer

A) True 
 B)False

Question 2

Phil Phoenix is paid monthly.For the month of January of the current year,he earned a total of $8,288.The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%.The FUTA tax rate is 0.8%,and the SUTA tax rate is 5.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.The amount of federal income tax withheld from his earnings was $1,375.17.His net pay for the month is:

Accepted Answer

A) $5,190.83 
B) $5,844.79 
C) $6,278.79 
D) $6,566.00 
E) $6,792.64 
A) $5,190.83 
B) $5,844.79 
C) $6,278.79 
D) $6,566.00 
E) $6,792.64

Question 3

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

Accepted Answer

Estimated liabilities are known obligati

Question 4

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the transaction by Alert Company?

Accepted Answer

A) Debit Notes Payable $4,500; credit Accounts Payable $4,500. 
B) Debit Accounts Payable $4,500; credit Notes Payable $4,500. 
C) Debit Accounts Receivable $4,500; credit Notes Payable $4,500. 
D) Debit Cash $4,500; credit Notes Payable $4,500. 
E) Debit Sales $4,500; credit Notes Payable $4,500. 
A) Debit Notes Payable $4,500; credit Accounts Payable $4,500. 
B) Debit Accounts Payable $4,500; credit Notes Payable $4,500. 
C) Debit Accounts Receivable $4,500; credit Notes Payable $4,500. 
D) Debit Cash $4,500; credit Notes Payable $4,500. 
E) Debit Sales $4,500; credit Notes Payable $4,500.

Question 5

Identify and discuss the factors involved in computing federal income taxes for employees.

Accepted Answer

The amount of federal income tax withhel

Question 6

The employer should record payroll deductions as:

Accepted Answer

A) Employee receivables. 
B) Payroll taxes. 
C) Current liabilities. 
D) Wages payable. 
E) Employee payables. 
A) Employee receivables. 
B) Payroll taxes. 
C) Current liabilities. 
D) Wages payable. 
E) Employee payables.

Question 7

The difference between the amount borrowed and the amount repaid is referred to as _______________.

Accepted Answer

The answer of The difference between the amount borrowed and...

Question 8

On September 15,SportsWorld borrowed $75,000 cash from FirstBank by signing a 12%,60-day note payable.
a.Prepare SportsWorld's journal entry to record the issuance of the note payable.
b.Prepare SportsWorld's journal entry to record the payment of the note at maturity.

Accepted Answer

a. 9/15 Cash………………………………….. 75

Question 9

Employee vacation benefits:

Accepted Answer

A) Are estimated liabilities. 
B) Are contingent liabilities. 
C) Are recorded as an expense when the employee takes a vacation. 
D) Are recorded as an expense when the employee retires. 
E) Increase net income. 
A) Are estimated liabilities. 
B) Are contingent liabilities. 
C) Are recorded as an expense when the employee takes a vacation. 
D) Are recorded as an expense when the employee retires. 
E) Increase net income.

Question 10

Sales taxes payable:

Accepted Answer

A) Is an estimated liability. 
B) Is a contingent liability. 
C) Is a current liability for retailers. 
D) Is a business expense. 
E) Is a long-term liability. 
A) Is an estimated liability. 
B) Is a contingent liability. 
C) Is a current liability for retailers. 
D) Is a business expense. 
E) Is a long-term liability.

Question 11

Vacation benefits are a type of _______________ liability.

Accepted Answer

The answer of Vacation benefits are a type of _______________...

Question 12

A company estimates that warranty expense will be 4% of sales.The company's sales for the current period are $185,000.The current period's entry to record the warranty expense is:

Accepted Answer

A) Debit Warranty Expense $7,400; credit Sales $7,400. 
B) Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400. 
C) Debit Estimated Warranty Liability $7,400; credit Warranty Expense $7,400 
D) Debit Estimated Warranty Liability $7,400; credit Cash $7,400. 
E) No entry is recorded until the items are returned for warranty repairs. 
A) Debit Warranty Expense $7,400; credit Sales $7,400. 
B) Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400. 
C) Debit Estimated Warranty Liability $7,400; credit Warranty Expense $7,400 
D) Debit Estimated Warranty Liability $7,400; credit Cash $7,400. 
E) No entry is recorded until the items are returned for warranty repairs.

Question 13

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the payment of the note by Alert Company on the maturity date?

Accepted Answer

A) Debit Notes Payable $4,500; debit Interest Expense $75; credit Cash $4,575. 
B) Debit Notes Payable $4,500; credit Interest Expense $75, credit Cash $4,425. 
C) Debit Cash $4,575; credit Interest Revenue $75; credit Notes Payable $4,500. 
D) Debit Notes Payable $4,500; debit Interest Expense $112; credit Cash $4,612. 
E) Debit Cash $4,575; credit Interest Revenue $75; credit Notes Receivable $4,500. 
A) Debit Notes Payable $4,500; debit Interest Expense $75; credit Cash $4,575. 
B) Debit Notes Payable $4,500; credit Interest Expense $75, credit Cash $4,425. 
C) Debit Cash $4,575; credit Interest Revenue $75; credit Notes Payable $4,500. 
D) Debit Notes Payable $4,500; debit Interest Expense $112; credit Cash $4,612. 
E) Debit Cash $4,575; credit Interest Revenue $75; credit Notes Receivable $4,500.

Question 14

What are known current liabilities?
 Cite at least two examples of known current liabilities.

Accepted Answer

Known current liabilities are obligation

The full disclosure principle requires the reporting of contingent liabilities that are reasonably possible.

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

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the transaction by Alert Company?

Identify and discuss the factors involved in computing federal income taxes for employees.

The employer should record payroll deductions as:

The difference between the amount borrowed and the amount repaid is referred to as _______________.

On September 15,SportsWorld borrowed $75,000 cash from FirstBank by signing a 12%,60-day note payable. a.Prepare SportsWorld's journal entry to record the issuance of the note payable. b.Prepare SportsWorld's journal entry to record the payment of the note at maturity.

Employee vacation benefits:

Sales taxes payable:

Vacation benefits are a type of _______________ liability.

A company estimates that warranty expense will be 4% of sales.The company's sales for the current period are $185,000.The current period's entry to record the warranty expense is:

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the payment of the note by Alert Company on the maturity date?

What are known current liabilities? Cite at least two examples of known current liabilities.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters

Exam 11: Current Liabilities and Payroll Accounting

The full disclosure principle requires the reporting of contingent liabilities that are reasonably possible.

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

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the transaction by Alert Company?

Identify and discuss the factors involved in computing federal income taxes for employees.

The employer should record payroll deductions as:

The difference between the amount borrowed and the amount repaid is referred to as _______________.

On September 15,SportsWorld borrowed $75,000 cash from FirstBank by signing a 12%,60-day note payable. a.Prepare SportsWorld's journal entry to record the issuance of the note payable. b.Prepare SportsWorld's journal entry to record the payment of the note at maturity.

Employee vacation benefits:

Sales taxes payable:

Vacation benefits are a type of _______________ liability.

A company estimates that warranty expense will be 4% of sales.The company's sales for the current period are $185,000.The current period's entry to record the warranty expense is:

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the payment of the note by Alert Company on the maturity date?

What are known current liabilities? Cite at least two examples of known current liabilities.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters