Question 1

Quick assets include

Accepted Answer

A) cash,cash equivalents,receivables,prepaid expenses,and inventory 
B) cash,cash equivalents,receivables,and prepaid expenses 
C) cash,cash equivalents,receivables,and inventory 
D) cash,cash equivalents,and receivables 
A) cash,cash equivalents,receivables,prepaid expenses,and inventory 
B) cash,cash equivalents,receivables,and prepaid expenses 
C) cash,cash equivalents,receivables,and inventory 
D) cash,cash equivalents,and receivables

Question 2

Mobile Sales has five sales employees which receive weekly paychecks.Each earns $11.50 per hour and each has worked 40 hours in the pay period.Each employee pays 12% of gross in federal income tax,3% in state income tax,6% of gross in social security tax,1.5% of gross in Medicare tax,and 0.5% in state disability insurance.Journalize the pay period ending January 19 which will be paid to the employees January 26.

Accepted Answer

None

Question 3

A current liability is a debt that is reasonably expected to be paid

Accepted Answer

A) between 6 months and 18 months 
B) out of currently recognized revenues 
C) within one year 
D) out of cash currently on hand 
A) between 6 months and 18 months 
B) out of currently recognized revenues 
C) within one year 
D) out of cash currently on hand

Question 4

Depending upon when an unfunded pension liability is to be paid,it will be classified on the balance sheet as either a long-term or a current liability.

Accepted Answer

A) True 
 B)False

Question 5

Dixon Sales has seven sales employees that receive weekly paychecks.Each earns $10.25 per hour and each has worked 40 hours in the pay period.Each employee pays 12% of gross in federal income tax,3% in state income tax,6% of gross in social security tax,1.5% of gross in Medicare tax,and 0.5% in state disability insurance.Journalize the recognition of the pay period ending January 19 which will be paid to the employees January 26.

Accepted Answer

None

Question 6

Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15–31.
 
-Salaries Payable would be recorded in the amount of

Accepted Answer

A) $8,200 
B) $6,830 
C) $8,630 
D) $7,450 
A) $8,200 
B) $6,830 
C) $8,630 
D) $7,450

Question 7

Baker Green's weekly gross earnings for the week ending December 7 were $2,500,and her federal income tax withholding was $525.Prior to this week Green had earned $98,000 for the year.Assuming the social security rate is 6% and Medicare is 1.5%,what is Green's net pay?

Accepted Answer

None

Question 8

On May 18,Rodriguez Co.issued an $84,000,6%,120-day note payable on an overdue account payable to Wilson Company.Assume that the fiscal year of Rodriguez ends on June 30.Which of the following relationships is true?

Accepted Answer

A) Rodriguez is the creditor and credits Accounts Receivable 
B) Wilson is the creditor and debits Accounts Receivable 
C) Wilson is the borrower and credits Accounts Payable 
D) Rodriguez is the borrower and debits Accounts Payable 
A) Rodriguez is the creditor and credits Accounts Receivable 
B) Wilson is the creditor and debits Accounts Receivable 
C) Wilson is the borrower and credits Accounts Payable 
D) Rodriguez is the borrower and debits Accounts Payable

Question 9

The following totals for the month of June were taken from the payroll register of Arcon Company: 
 
The entry to record the payment of net pay would include a

Accepted Answer

A)  debit to salaries payable for $14,000 
B)  debit to salaries payable for $9,350 
C)  credit to salaries expense for $9,350 
D)  credit to salaries payable for $9,350 
A)  debit to salaries payable for $14,000 
B)  debit to salaries payable for $9,350 
C)  credit to salaries expense for $9,350 
D)  credit to salaries payable for $9,350

Question 10

Amounts withheld from each employee for social security and Medicare vary by state.

Accepted Answer

A) True 
 B)False

Question 11

$\begin{array}{lr}
\text { Salaries } & \$ 12,000 \
\text { FICA taxes withheld } & 900 \
\text { Income taxes withheld } & 2,500 \
\text { Medical insurance deductions } & 450 \
\text { Federal unemployment taxes } & 32\
\text { State unemployment taxes }&216\
\end{array}$
-The entry to record accrual of employer's payroll taxes would include a

Accepted Answer

A) debit to Payroll Tax Expense for $248 
B) debit to FICA Taxes Payable for $1,800 
C) credit to Payroll Tax Expense for $248 
D) debit to Payroll Tax Expense for $1,148 
A) debit to Payroll Tax Expense for $248 
B) debit to FICA Taxes Payable for $1,800 
C) credit to Payroll Tax Expense for $248 
D) debit to Payroll Tax Expense for $1,148

Question 12

$\begin{array}{lr}
\text { Salaries } & \$ 12,000 \
\text { FICA taxes withheld } & 900 \
\text { Income taxes withheld } & 2,500 \
\text { Medical insurance deductions } & 450 \
\text { Federal unemployment taxes } & 32\
\text { State unemployment taxes }&216\
\end{array}$
-The following totals for the month of April were taken from the payroll register of Magnum Company: 
$\begin{array}{ll}
\text { Salaries }& \$ 10,000 \
\text { FICA taxes withheld } & 750\
\text { Income taxes withheld } & 2,000\
\text { Medical insurance deductions } & 450\
\text { Unemployment taxes }&420
\end{array}$
 The entry to record accrual of employer's payroll taxes would include a

Accepted Answer

A) debit to Payroll Tax Expense for $1,170 
B) debit to FICA Taxes Payable for $1,500 
C) credit to Payroll Tax Expense for $420 
D) debit to Payroll Tax Expense for $1,620 
A) debit to Payroll Tax Expense for $1,170 
B) debit to FICA Taxes Payable for $1,500 
C) credit to Payroll Tax Expense for $420 
D) debit to Payroll Tax Expense for $1,620

Question 13

Each year there is a ceiling for the amount that is subject to all of the following except

Accepted Answer

A) social security tax 
B) federal income tax 
C) federal unemployment tax 
D) state unemployment tax 
A) social security tax 
B) federal income tax 
C) federal unemployment tax 
D) state unemployment tax

Question 14

The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is

Accepted Answer

A) debit Vacation Pay Expense; credit Vacation Pay Payable 
B) debit Vacation Pay Payable; credit Vacation Pay Expense 
C) debit Salary Expense; credit Cash 
D) debit Salary Expense; credit Salaries Payable 
A) debit Vacation Pay Expense; credit Vacation Pay Payable 
B) debit Vacation Pay Payable; credit Vacation Pay Expense 
C) debit Salary Expense; credit Cash 
D) debit Salary Expense; credit Salaries Payable

Question 15

Obligations that may arise from past transactions only if certain events occur in the future are contingent liabilities.

Accepted Answer

A) True 
 B)False

Question 16

The payroll summary for December 31 for Waters Co.revealed total earnings of $80,000.Earnings subject to 6% social security tax were $60,000; earnings subject to 1.5% Medicare tax were $80,000; and earnings of $3,000 were subject to 4.3% state and 0.8% federal unemployment compensation tax.Journalize the entry to record the accrual of payroll taxes.

Accepted Answer

None

Question 17

Davis and Thompson have earnings of $850 each.The social security tax rate is 6% and the Medicare tax rate is 1.5%.Assuming that the payroll will be paid on December 29,what will be the employer's total FICA tax for this payroll period?

Accepted Answer

A) $102.00 
B) $127.50 
C) $96.00 
D) $25.50 
A) $102.00 
B) $127.50 
C) $96.00 
D) $25.50

Question 18

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 19

Estimating and recording product warranty expense in the period of the sale best follows the

Accepted Answer

A) cost concept 
B) business entity concept 
C) matching concept 
D) materiality concept 
A) cost concept 
B) business entity concept 
C) matching concept 
D) materiality concept

Question 20

The journal entry used to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

Accepted Answer

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

Quick assets include

A current liability is a debt that is reasonably expected to be paid

Depending upon when an unfunded pension liability is to be paid,it will be classified on the balance sheet as either a long-term or a current liability.

Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15–31. -Salaries Payable would be recorded in the amount of

Baker Green's weekly gross earnings for the week ending December 7 were $2,500,and her federal income tax withholding was $525.Prior to this week Green had earned $98,000 for the year.Assuming the social security rate is 6% and Medicare is 1.5%,what is Green's net pay?

On May 18,Rodriguez Co.issued an $84,000,6%,120-day note payable on an overdue account payable to Wilson Company.Assume that the fiscal year of Rodriguez ends on June 30.Which of the following relationships is true?

The following totals for the month of June were taken from the payroll register of Arcon Company: The entry to record the payment of net pay would include a

Amounts withheld from each employee for social security and Medicare vary by state.

Salaries \ 12,000 FICA taxes withheld 900 Income taxes withheld 2,500 Medical insurance deductions 450 Federal unemployment taxes 32 State unemployment taxes 216 -The entry to record accrual of employer's payroll taxes would include a

Each year there is a ceiling for the amount that is subject to all of the following except

The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is

Obligations that may arise from past transactions only if certain events occur in the future are contingent liabilities.

Davis and Thompson have earnings of $850 each.The social security tax rate is 6% and the Medicare tax rate is 1.5%.Assuming that the payroll will be paid on December 29,what will be the employer's total FICA tax for this payroll period?

Estimating and recording product warranty expense in the period of the sale best follows the

The journal entry used to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

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

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Exam 10: Current Liabilities and Payroll

Quick assets include

A current liability is a debt that is reasonably expected to be paid

Depending upon when an unfunded pension liability is to be paid,it will be classified on the balance sheet as either a long-term or a current liability.

Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15–31. -Salaries Payable would be recorded in the amount of

Baker Green's weekly gross earnings for the week ending December 7 were $2,500,and her federal income tax withholding was $525.Prior to this week Green had earned $98,000 for the year.Assuming the social security rate is 6% and Medicare is 1.5%,what is Green's net pay?

On May 18,Rodriguez Co.issued an $84,000,6%,120-day note payable on an overdue account payable to Wilson Company.Assume that the fiscal year of Rodriguez ends on June 30.Which of the following relationships is true?

The following totals for the month of June were taken from the payroll register of Arcon Company: The entry to record the payment of net pay would include a

Amounts withheld from each employee for social security and Medicare vary by state.

Salaries \ 12,000 FICA taxes withheld 900 Income taxes withheld 2,500 Medical insurance deductions 450 Federal unemployment taxes 32 State unemployment taxes 216 -The entry to record accrual of employer's payroll taxes would include a

Each year there is a ceiling for the amount that is subject to all of the following except

The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is

Obligations that may arise from past transactions only if certain events occur in the future are contingent liabilities.

Davis and Thompson have earnings of $850 each.The social security tax rate is 6% and the Medicare tax rate is 1.5%.Assuming that the payroll will be paid on December 29,what will be the employer's total FICA tax for this payroll period?

Estimating and recording product warranty expense in the period of the sale best follows the

The journal entry used to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

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

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