Question 1

FICA taxes include:

Accepted Answer

A) Social Security taxes 
B) Charitable giving 
C) Employee income taxes 
D) Unemployment taxes 
E) Federal taxes 
A) Social Security taxes 
B) Charitable giving 
C) Employee income taxes 
D) Unemployment taxes 
E) Federal taxes

Question 2

Mission Company has three employees:     
-What is the amount that Mission Company will withhold from Smith's August gross pay?

Accepted Answer

A) $ 62.00 
B) $138.50 
C) $443.20 
D) $581.70 
E) $76.50 
A) $ 62.00 
B) $138.50 
C) $443.20 
D) $581.70 
E) $76.50

Question 3

A company's income before interest expense and income taxes was $225,000 in 2013 and $200,000 in 2014.Its interest expense was $45,000 for both years.Calculate the company's times interest earned ratio and comment on its level of risk.

Accepted Answer

2013: $225,000/45,000 = 5 2014: $200,000

Question 4

The times interest earned ratio is a measure of:

Accepted Answer

A) A company's ability to pay its operating expenses on time. 
B) A company's ability to pay interest incurred even if sales decline. 
C) A company's profitability. 
D) The relation between income and debt. 
E) The relation between assets and liabilities. 
A) A company's ability to pay its operating expenses on time. 
B) A company's ability to pay interest incurred even if sales decline. 
C) A company's profitability. 
D) The relation between income and debt. 
E) The relation between assets and liabilities.

Question 5

The annual federal unemployment tax return is:

Accepted Answer

A) Form 940 
B) Form 1099 
C) Form 104 
D) Form W-2 
E) Form W-4 
A) Form 940 
B) Form 1099 
C) Form 104 
D) Form W-2 
E) Form W-4

Question 6

A payroll register usually shows the pay period dates,hours worked,gross pay,deductions,and net pay of each employee for every pay period.

Accepted Answer

A) True 
 B)False

Question 7

If a company uses a special payroll bank account:

Accepted Answer

A) The company does not need to issue paychecks. 
B) The company draws one check for the entire payroll on the regular bank account and deposits it in the payroll bank account. 
C) The company must use a federal depository bank for the payroll. 
D) There is no need for a payroll register. 
E) There is no need to issue W-2's. 
A) The company does not need to issue paychecks. 
B) The company draws one check for the entire payroll on the regular bank account and deposits it in the payroll bank account. 
C) The company must use a federal depository bank for the payroll. 
D) There is no need for a payroll register. 
E) There is no need to issue W-2's.

Question 8

Conner Company borrows $185,600 cash on November 1,2013,by signing a 120-day,8% note.What is the total amount of interest that Conner will recognize for this note?

Accepted Answer

A) $4,949. 
B) $14,848. 
C) $2,467. 
D) $0,no interest expense is recognized. 
E) $1485. 
A) $4,949. 
B) $14,848. 
C) $2,467. 
D) $0,no interest expense is recognized. 
E) $1485.

Question 9

What is a short-term note payable? Explain the accounting issues related to notes payable.

Accepted Answer

A note payable is a written promise to p

Question 10

The Federal Insurance Contributions Act (FICA) requires that each employer file a:

Accepted Answer

A) W-4 
B) Form 941 
C) Form 1040 
D) Form 1099 
E) Form 521B 
A) W-4 
B) Form 941 
C) Form 1040 
D) Form 1099 
E) Form 521B

Question 11

Vacation benefits are a type of _______________ liability.

Accepted Answer

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

Question 12

Payroll taxes are considered to be contingent liabilities.

Accepted Answer

A) True 
 B)False

Question 13

Wolfe Company employer offers a bonus to its employees based on the company's annual pre-bonus net income (to be equally shared by all).This year's bonuses are estimated at $25,000.How would the company record the year-end adjusting entry to record this benefit?

Accepted Answer

A) Debit Salaries Expense for $25,000 and credit Employee Bonus Expense for $25,000. 
B) Debit Payroll Tax Expense for $25,000 and credit Payroll Taxes Payable for $25,000. 
C) Debit Income Summary for $25,000 and credit Retained Earnings for $25,000. 
D) Debit Employee Bonus Expense for $25,000 and credit Bonus Payable for $25,000. 
E) Debit Bonus Payable for $25,000 and credit Employee Bonus Expense for $25,000. 
A) Debit Salaries Expense for $25,000 and credit Employee Bonus Expense for $25,000. 
B) Debit Payroll Tax Expense for $25,000 and credit Payroll Taxes Payable for $25,000. 
C) Debit Income Summary for $25,000 and credit Retained Earnings for $25,000. 
D) Debit Employee Bonus Expense for $25,000 and credit Bonus Payable for $25,000. 
E) Debit Bonus Payable for $25,000 and credit Employee Bonus Expense for $25,000.

Question 14

The times interest earned computation is:

Accepted Answer

A) (Net income + Interest expense + Income taxes)/Interest expense. 
B) (Net income + Interest expense - Income taxes)/Interest expense. 
C) (Net income - Interest expense - Income taxes)/Interest expense. 
D) (Net income - Interest expense + Income taxes)/Interest expense. 
E) Interest expense/(Net income + Interest expense + Income taxes expense). 
A) (Net income + Interest expense + Income taxes)/Interest expense. 
B) (Net income + Interest expense - Income taxes)/Interest expense. 
C) (Net income - Interest expense - Income taxes)/Interest expense. 
D) (Net income - Interest expense + Income taxes)/Interest expense. 
E) Interest expense/(Net income + Interest expense + Income taxes expense).

Question 15

A short-term note payable:

Accepted Answer

A) Is 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. 
B) Is a contingent liability. 
C) Is an estimated liability. 
D) Is not a liability until the due date. 
E) Cannot be used to extend the payment period for an account payable. 
A) Is 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. 
B) Is a contingent liability. 
C) Is an estimated liability. 
D) Is not a liability until the due date. 
E) Cannot be used to extend the payment period for an account payable.

Question 16

If a company paid $350,000 in bonuses,and net income prior to the bonus was $4,200,000,what was the bonus percentage offered to the employees?

Accepted Answer

A) 6.2% 
B) 5.7% 
C) 9.1% 
D) 8.3% 
E) 6.8% 
A) 6.2% 
B) 5.7% 
C) 9.1% 
D) 8.3% 
E) 6.8%

Question 17

A company has two employees whose January salaries totaled $8,000.The federal income tax rate for both employees is 15%.The FICA Social Security tax is 6.2% and the FICA Medicare tax is 1.45%.Calculate the amount of employee taxes withheld and prepare the company's journal entry to accrue the January salaries expense and withholding of January taxes.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 18

Required employee payroll deductions include income taxes,Social Security taxes,pension and health contributions,union dues,and charitable giving.

Accepted Answer

A) True 
 B)False

Question 19

Amounts received in advance from customers for future products or services:

Accepted Answer

A) Are revenues. 
B) Increase income. 
C) Are liabilities. 
D) Are not allowed under GAAP. 
E) Require an outlay of cash in the future. 
A) Are revenues. 
B) Increase income. 
C) Are liabilities. 
D) Are not allowed under GAAP. 
E) Require an outlay of cash in the future.

Question 20

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.

FICA taxes include:

Mission Company has three employees: -What is the amount that Mission Company will withhold from Smith's August gross pay?

A company's income before interest expense and income taxes was $225,000 in 2013 and $200,000 in 2014.Its interest expense was $45,000 for both years.Calculate the company's times interest earned ratio and comment on its level of risk.

The times interest earned ratio is a measure of:

The annual federal unemployment tax return is:

A payroll register usually shows the pay period dates,hours worked,gross pay,deductions,and net pay of each employee for every pay period.

If a company uses a special payroll bank account:

Conner Company borrows $185,600 cash on November 1,2013,by signing a 120-day,8% note.What is the total amount of interest that Conner will recognize for this note?

What is a short-term note payable? Explain the accounting issues related to notes payable.

The Federal Insurance Contributions Act (FICA) requires that each employer file a:

Vacation benefits are a type of _______________ liability.

Payroll taxes are considered to be contingent liabilities.

Wolfe Company employer offers a bonus to its employees based on the company's annual pre-bonus net income (to be equally shared by all).This year's bonuses are estimated at $25,000.How would the company record the year-end adjusting entry to record this benefit?

The times interest earned computation is:

A short-term note payable:

If a company paid $350,000 in bonuses,and net income prior to the bonus was $4,200,000,what was the bonus percentage offered to the employees?

Required employee payroll deductions include income taxes,Social Security taxes,pension and health contributions,union dues,and charitable giving.

Amounts received in advance from customers for future products or services:

Sales taxes payable:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 9: Reporting and Analyzing Current Liabilities

FICA taxes include:

Mission Company has three employees: -What is the amount that Mission Company will withhold from Smith's August gross pay?

A company's income before interest expense and income taxes was $225,000 in 2013 and $200,000 in 2014.Its interest expense was $45,000 for both years.Calculate the company's times interest earned ratio and comment on its level of risk.

The times interest earned ratio is a measure of:

The annual federal unemployment tax return is:

A payroll register usually shows the pay period dates,hours worked,gross pay,deductions,and net pay of each employee for every pay period.

If a company uses a special payroll bank account:

Conner Company borrows $185,600 cash on November 1,2013,by signing a 120-day,8% note.What is the total amount of interest that Conner will recognize for this note?

What is a short-term note payable? Explain the accounting issues related to notes payable.

The Federal Insurance Contributions Act (FICA) requires that each employer file a:

Vacation benefits are a type of _______________ liability.

Payroll taxes are considered to be contingent liabilities.

Wolfe Company employer offers a bonus to its employees based on the company's annual pre-bonus net income (to be equally shared by all).This year's bonuses are estimated at $25,000.How would the company record the year-end adjusting entry to record this benefit?

The times interest earned computation is:

A short-term note payable:

If a company paid $350,000 in bonuses,and net income prior to the bonus was $4,200,000,what was the bonus percentage offered to the employees?

Required employee payroll deductions include income taxes,Social Security taxes,pension and health contributions,union dues,and charitable giving.

Amounts received in advance from customers for future products or services:

Sales taxes payable:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters