Question 1

The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of the year is

Accepted Answer

A) debit Salary Expense;credit Cash 
B) debit Pension Expense;credit Unfunded Pension Liability 
C) debit Pension Expense;credit Unfunded Pension Liability and Cash 
D) debit Pension Expense;credit Cash

Question 2

Which of the following is the most desirable quick ratio?

Accepted Answer

A) 2.20 
B) 1.80 
C) 1.95 
D) 1.50

Question 3

Federal unemployment taxes are paid by the employer and the employee.

Accepted Answer

A) True 
 B)False

Question 4

Payroll taxes levied against employees become liabilities

Accepted Answer

A) the first of the following month 
B) when salary is accrued 
C) when data is entered in a payroll register 
D) at the end of an accounting period

Question 5

The proceeds from discounting a $20,000,60-day,note payable at 6% is $20,200.

Accepted Answer

A) True 
 B)False

Question 6

The amount of money a borrower receives from the lender is called discount rate.

Accepted Answer

A) True 
 B)False

Question 7

The current assets and current liabilities for Kolbie Company and Newton Company are shown as follows at the end of 2012.

Accepted Answer

The answer of The current assets and current liabilities for...

Question 8

When a borrower receives the face amount of a discounted note less discount,this amount is known as:

Accepted Answer

A) the note proceeds 
B) the note discount 
C) the note deferred interest 
D) the note principal

Question 9

On January 5,2014,Garrett Company,a calendar-year company,issued $1,000,000 of notes payable,of which $200,000 is due on January 1 for each of the next five years.The proper balance sheet presentation on December 31,2014,is

Accepted Answer

A) Current Liabilities,$1,000,000. 
B) Current Liabilities,$200,000;Long-term Debt,$800,000. 
C) Long-term Debt,$1,000,000 
D) Current Liabilities,$800,000;Long-term Debt,$200,000.

Question 10

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

Question 11

The current portion of long-term debt should

Accepted Answer

A) be classified as a long-term liability. 
B) not be separated from the long-term portion of debt. 
C) be paid immediately. 
D) be reclassified as a current liability.

Exam 10: Current Liabilities and Payroll

The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of the year is

Which of the following is the most desirable quick ratio?

Federal unemployment taxes are paid by the employer and the employee.

Payroll taxes levied against employees become liabilities

The proceeds from discounting a $20,000,60-day,note payable at 6% is $20,200.

The amount of money a borrower receives from the lender is called discount rate.

The current assets and current liabilities for Kolbie Company and Newton Company are shown as follows at the end of 2012.

When a borrower receives the face amount of a discounted note less discount,this amount is known as:

On January 5,2014,Garrett Company,a calendar-year company,issued $1,000,000 of notes payable,of which $200,000 is due on January 1 for each of the next five years.The proper balance sheet presentation on December 31,2014,is

Quick assets include

The current portion of long-term debt should