Question 1

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 2

Dixon Sales has seven sales employees which 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 1/2% in State Disability Insurance. Journalize the recognition of the pay period ending January 19th which will be paid to the employees January 26th. (Keep in mind that none of the employees is subject to a ceiling amount for social security.)

Accepted Answer

Jan 19
 @#IMG-DLM&_T

Question 3

The Core Company had the following assets and liabilities as of December 31, 2012:
   Calculate: Current Ratio, Working Capital and Quick Ratio

Accepted Answer

Current Ratio: ($58,000 + $25,

Question 4

Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%. Assuming a 360-day year, the cash proceeds to Chang Co. are

Accepted Answer

A)  $49,750 
B)  $47,000 
C)  $49,000 
D)  $51,000 
A)  $49,750 
B)  $47,000 
C)  $49,000 
D)  $51,000

Question 5

During the first year of operations, employees earned vacation pay of $35,000. The vacations will be taken during the second year. The vacation pay expense should be recorded in the second year as the vacations are taken by the employees.

Accepted Answer

A) True 
 B)False

Question 6

Use the following information to answer the following questions. Assuming no employees are subject to ceilings for their earnings, Jensen Company has the following information for the pay period of January 15 - 31, 20xx.
  Assuming that all wages are subject to federal and state unemployment taxes, the Payroll Taxes Expense would be recorded as:

Accepted Answer

A)  $1,370 
B)  $750 
C)  $620 
D)  $2,870 
A)  $1,370 
B)  $750 
C)  $620 
D)  $2,870

Question 7

Assuming a 360-day year, proceeds of $48,750 were received from discounting a $50,000, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was

Accepted Answer

A)  6.25% 
B)  10.00% 
C)  10.26% 
D)  9.75% 
A)  6.25% 
B)  10.00% 
C)  10.26% 
D)  9.75%

Question 8

The journal entry a company uses 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 9

FICA tax is a payroll tax that is paid only by employers.

Accepted Answer

A) True 
 B)False

Question 10

FICA tax becomes a liability to the federal government at the time an employee's payroll is prepared.

Accepted Answer

A) True 
 B)False

Question 11

For a current liability to exist, the following two tests must be met. The liability must be due usually within a year and must be paid out of current assets.

Accepted Answer

A) True 
 B)False

Question 12

In a defined benefits plan, the employer bears the investment risks in funding a future retirement income benefit.

Accepted Answer

A) True 
 B)False

Question 13

An aid in internal control over payrolls that indicates employee attendance is

Accepted Answer

A)  time card 
B)  voucher system 
C)  payroll register 
D)  employee's earnings record 
A)  time card 
B)  voucher system 
C)  payroll register 
D)  employee's earnings record

Question 14

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 15

The use of a separate payroll bank account is not an advantageous control, because it creates more complexity in reconciliation functions for a company and invites theft.

Accepted Answer

A) True 
 B)False

Question 16

Journalize the following, assuming a 360-day year is used for interest calculations:

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 17

Journalize the following transactions:

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 18

An unfunded pension liability is reported on the balance sheet as

Accepted Answer

A)  current liability 
B)  owner's equity 
C)  long-term liability 
D)  current liability or long-term liability, depending upon when the pension liability is to be paid 
A)  current liability 
B)  owner's equity 
C)  long-term liability 
D)  current liability or long-term liability, depending upon when the pension liability is to be paid

Question 19

Which of the following forms is typically given to employees at the end of the calendar year so that employees can file their individual income tax forms?

Accepted Answer

A)  Employee's Withholding Allowance Certificate (W-4) 
B)  Wage and Tax Statement (Form W-2) 
C)  Employer's Quarterly Federal Tax Return (Form 941) 
D)  401k plans 
A)  Employee's Withholding Allowance Certificate (W-4) 
B)  Wage and Tax Statement (Form W-2) 
C)  Employer's Quarterly Federal Tax Return (Form 941) 
D)  401k plans

Question 20

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

Accepted Answer

A) True 
 B)False

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

The Core Company had the following assets and liabilities as of December 31, 2012: Calculate: Current Ratio, Working Capital and Quick Ratio

Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%. Assuming a 360-day year, the cash proceeds to Chang Co. are

During the first year of operations, employees earned vacation pay of $35,000. The vacations will be taken during the second year. The vacation pay expense should be recorded in the second year as the vacations are taken by the employees.

Assuming a 360-day year, proceeds of $48,750 were received from discounting a $50,000, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was

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

FICA tax is a payroll tax that is paid only by employers.

FICA tax becomes a liability to the federal government at the time an employee's payroll is prepared.

For a current liability to exist, the following two tests must be met. The liability must be due usually within a year and must be paid out of current assets.

In a defined benefits plan, the employer bears the investment risks in funding a future retirement income benefit.

An aid in internal control over payrolls that indicates employee attendance is

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

The use of a separate payroll bank account is not an advantageous control, because it creates more complexity in reconciliation functions for a company and invites theft.

Journalize the following, assuming a 360-day year is used for interest calculations:

Journalize the following transactions:

An unfunded pension liability is reported on the balance sheet as

Which of the following forms is typically given to employees at the end of the calendar year so that employees can file their individual income tax forms?

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 11: Current Liabilities and Payroll

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

The Core Company had the following assets and liabilities as of December 31, 2012: Calculate: Current Ratio, Working Capital and Quick Ratio

Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%. Assuming a 360-day year, the cash proceeds to Chang Co. are

During the first year of operations, employees earned vacation pay of $35,000. The vacations will be taken during the second year. The vacation pay expense should be recorded in the second year as the vacations are taken by the employees.

Assuming a 360-day year, proceeds of $48,750 were received from discounting a $50,000, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was

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

FICA tax is a payroll tax that is paid only by employers.

FICA tax becomes a liability to the federal government at the time an employee's payroll is prepared.

For a current liability to exist, the following two tests must be met. The liability must be due usually within a year and must be paid out of current assets.

In a defined benefits plan, the employer bears the investment risks in funding a future retirement income benefit.

An aid in internal control over payrolls that indicates employee attendance is

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

The use of a separate payroll bank account is not an advantageous control, because it creates more complexity in reconciliation functions for a company and invites theft.

Journalize the following, assuming a 360-day year is used for interest calculations:

Journalize the following transactions:

An unfunded pension liability is reported on the balance sheet as

Which of the following forms is typically given to employees at the end of the calendar year so that employees can file their individual income tax forms?

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters