Question 1

A table that shows the amount of federal income tax to be withheld from an employee's pay is the:

Accepted Answer

A) Form 941. 
B) Tax table. 
C) Wage bracket withholding table. 
D) W-2. 
E) W-4. 
A) Form 941. 
B) Tax table. 
C) Wage bracket withholding table. 
D) W-2. 
E) W-4.

Question 2

FUTA is the abbreviation for social security taxes.

Accepted Answer

A) True 
 B)False

Question 3

Metro Express has five sales employees,each of whom earns $4,000 per month and is paid on the last working day of the month.Each employee's wages are subject to FICA Social Security taxes of 6.2% and Medicare taxes of 1.45% on all wages.Withholding for each employee also includes federal income tax of 16% and monthly medical insurance premiums of $110 for each employee.
a.Prepare the general journal entry to accrue the monthly sales salaries expense at January 31.
b.The employer payroll taxes for Metro Express include: FICA taxes,federal unemployment taxes of 0.8% on the first $7,000 paid to each employee,and state unemployment taxes of 4.0% on the first $7,000 paid to each employee.Prepare the journal entry to record the employer's payroll taxes at January 31 for Metro Express.

Accepted Answer

a. @#IMG-DLM&
b. @#IMG-DLM&_TB

Question 4

On December 1,2013,Gates Company borrowed $45,000 cash from First Bank on a 90-day,9% note payable.Gates is a calendar year company
a.Prepare Gate's general journal entry to record the issuance of the note payable.
b.Prepare Gate's general journal entry to record the accrued interest due at December 31,2013.
c.Prepare Gate's general journal entry to record the payment of the note on March 1,2014.
Assume no other entries related to this note were made in 2014.

Accepted Answer

a. @#IMG-DLM&_TB6947_00_TB6947_00_TB6947

Question 5

The main purpose of the wage bracket withholding table is to:

Accepted Answer

A) Compute social security withholding. 
B) Compute Medicare withholding. 
C) Compute federal income tax withholding. 
D) Prepare the W-4. 
E) Compute gross earnings. 
A) Compute social security withholding. 
B) Compute Medicare withholding. 
C) Compute federal income tax withholding. 
D) Prepare the W-4. 
E) Compute gross earnings.

Question 6

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.

Accepted Answer

short-term

Question 7

Times interest earned is calculated by:

Accepted Answer

A) Multiplying interest expense times income. 
B) Dividing interest expense by income before interest expense. 
C) Dividing income before interest expense and any income tax by interest expense. 
D) Dividing interest and income tax expense by income before interest and income tax expense. 
E) Dividing income before interest expense by interest expense and income taxes. 
A) Multiplying interest expense times income. 
B) Dividing interest expense by income before interest expense. 
C) Dividing income before interest expense and any income tax by interest expense. 
D) Dividing interest and income tax expense by income before interest and income tax expense. 
E) Dividing income before interest expense by interest expense and income taxes.

Question 8

Uncertainties such as natural disasters that could happen in the future:

Accepted Answer

A) Are not contingent liabilities because they are future events not arising out of past transactions or events. 
B) Are contingent liabilities because they are future events arising from past transactions or events. 
C) Should be disclosed because of their usefulness to financial statements. 
D) Are estimated liabilities because the amounts are uncertain. 
E) Arise out of transactions such as debt guarantees. 
A) Are not contingent liabilities because they are future events not arising out of past transactions or events. 
B) Are contingent liabilities because they are future events arising from past transactions or events. 
C) Should be disclosed because of their usefulness to financial statements. 
D) Are estimated liabilities because the amounts are uncertain. 
E) Arise out of transactions such as debt guarantees.

Question 9

A bank that is authorized to accept amounts payable to the federal government is a:

Accepted Answer

A) Credit union 
B) FDIC insured bank 
C) Federal depository bank 
D) National bank 
E) Federal reserve bank 
A) Credit union 
B) FDIC insured bank 
C) Federal depository bank 
D) National bank 
E) Federal reserve bank

Question 10

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

Accepted Answer

Estimated liabilities are known obligati

Question 11

FUTA requires employers to pay a federal unemployment tax on the first $7,000 in salary or wages paid to each employee.

Accepted Answer

A) True 
 B)False

Question 12

Uncertainties from the development of new competing products are contingent liabilities.

Accepted Answer

A) True 
 B)False

Question 13

A contingent liability is a potential obligation that depends on a future event arising from a future transaction or event.

Accepted Answer

A) True 
 B)False

Question 14

The wage and tax statement is:

Accepted Answer

A) Form 940 
B) Form 941 
C) Form 1040 
D) Form W-2 
E) Form W-4 
A) Form 940 
B) Form 941 
C) Form 1040 
D) Form W-2 
E) Form W-4

Question 15

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

Accepted Answer

The answer of A _____________________ shows the pay period dates,hours...

Question 16

The FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%.An employee's share of both FICA taxes was $3,901.50.Given that this employee did not exceed the FICA earnings limitation,compute gross pay.

Accepted Answer

A) $269,068.96. 
B) $62,927.42. 
C) $29,846.48. 
D) $51,000. 
E) Zero,since the employee's pay did not exceed the FICA limit. 
A) $269,068.96. 
B) $62,927.42. 
C) $29,846.48. 
D) $51,000. 
E) Zero,since the employee's pay did not exceed the FICA limit.

Question 17

Obligations due to be paid within one year or within the company's operating cycle,whichever is longer,are:

Accepted Answer

A) Current assets 
B) Current liabilities 
C) Earned revenues 
D) Operating cycle liabilities 
E) Bills 
A) Current assets 
B) Current liabilities 
C) Earned revenues 
D) Operating cycle liabilities 
E) Bills

Question 18

__________ are obligations due within one year or the company's operating cycle,whichever is longer.

Accepted Answer

The answer of __________ are obligations due within one year...

Question 19

A liability is a probable future payment of assets or services that a company is currently obligated to make as a result of past transactions or events.

Accepted Answer

A) True 
 B)False

Question 20

Gross pay less all deductions is called ____________________.

Accepted Answer

The answer of Gross pay less all deductions is called...

A table that shows the amount of federal income tax to be withheld from an employee's pay is the:

FUTA is the abbreviation for social security taxes.

The main purpose of the wage bracket withholding table is to:

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.

Times interest earned is calculated by:

Uncertainties such as natural disasters that could happen in the future:

A bank that is authorized to accept amounts payable to the federal government is a:

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

FUTA requires employers to pay a federal unemployment tax on the first $7,000 in salary or wages paid to each employee.

Uncertainties from the development of new competing products are contingent liabilities.

A contingent liability is a potential obligation that depends on a future event arising from a future transaction or event.

The wage and tax statement is:

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

The FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%.An employee's share of both FICA taxes was $3,901.50.Given that this employee did not exceed the FICA earnings limitation,compute gross pay.

Obligations due to be paid within one year or within the company's operating cycle,whichever is longer,are:

__________ are obligations due within one year or the company's operating cycle,whichever is longer.

A liability is a probable future payment of assets or services that a company is currently obligated to make as a result of past transactions or events.

Gross pay less all deductions is called ____________________.

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

A table that shows the amount of federal income tax to be withheld from an employee's pay is the:

FUTA is the abbreviation for social security taxes.

The main purpose of the wage bracket withholding table is to:

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.

Times interest earned is calculated by:

Uncertainties such as natural disasters that could happen in the future:

A bank that is authorized to accept amounts payable to the federal government is a:

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

FUTA requires employers to pay a federal unemployment tax on the first $7,000 in salary or wages paid to each employee.

Uncertainties from the development of new competing products are contingent liabilities.

A contingent liability is a potential obligation that depends on a future event arising from a future transaction or event.

The wage and tax statement is:

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

The FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%.An employee's share of both FICA taxes was $3,901.50.Given that this employee did not exceed the FICA earnings limitation,compute gross pay.

Obligations due to be paid within one year or within the company's operating cycle,whichever is longer,are:

__________ are obligations due within one year or the company's operating cycle,whichever is longer.

A liability is a probable future payment of assets or services that a company is currently obligated to make as a result of past transactions or events.

Gross pay less all deductions is called ____________________.

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