FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Current Liabilities and Payroll

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 101

True/False

Review LaterAdd Note

Review Later

Payroll taxes levied against employers become an employer liability at the time the employee wages are incurred.

A) True
B) False

Correct Answer

verified

Show Answer

Question 102

Multiple Choice

Review LaterAdd Note

Review Later

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -(Cash + Temporary investments + Accounts receivable) /Current liabilities

A) Current ratio
B) Working capital
C) Quick assets
D) Quick ratio
E) Record an accrual and disclose in the notes to the financial statements
F) Disclose only in notes to financial statements
G) No disclosure needed in notes to financial statements

H) A) and G)
I) A) and F)

Correct Answer

verified

Show Answer

Question 103

True/False

Review LaterAdd Note

Interest expense is reported in the Operating expense section of the income statement.

The journal entry to record the cost of warranty repairs that were incurred during the current period,but related to sales made in prior years,includes a debit to Warranty Expense.

Which of the following is included in the employer's payroll taxes?

Martin Jackson receives an hourly wage rate of $30,with time-and-a-half pay for all hours worked in excess of 40 hours during a week.Payroll data for the current week are as follows: hours worked,46; federal income tax withheld,$350; social security tax rate,6.0%; and Medicare tax rate,1.5%.What is the net amount to be paid to Jackson?

The total net pay for a period is determined from the payroll register.

For proper matching of revenues and expenses,the estimated cost of fringe benefits must be recognized as an expense of the period during which the employee earns the benefits.

Thomas Martin receives an hourly wage rate of $40,with time-and-a-half pay for all hours worked in excess of 40 hours during a week.Payroll data for the current week are as follows: hours worked,48; federal income tax withheld,$350; social security tax rate,6.0%; and Medicare tax rate,1.5%.What is the gross pay for Martin?

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

Most employers are required to withhold federal unemployment taxes from employee earnings.

Excel Products Inc.pays its employees semimonthly.The summary of the payroll for December 31,indicated the following:​ For the year ended December 31,$40,000 of the December 31 payroll is subject to social security tax of 6.0%; $120,000 is subject to Medicare tax of 1.5%; $10,000 is subject to state unemployment tax of 4.3% and federal unemployment tax of 0.8%.As of January 1,of the following year,all of the $120,000 is subject to all payroll taxes.Prepare the journal entries for payroll tax expense if the employees are paid (a)December 31 of the current year or (b)January 2 of the following year.

Notes payable may be issued to creditors to satisfy previously created accounts payable.

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Reasonably possible likelihood of a liability

Townson Company had gross wages of $200,000 during the week ended December 10.The amount of wages subject to social security tax was $180,000,while the amount of wages subject to federal and state unemployment taxes was $24,000.Tax rates are as follows:The total amount withheld from employee wages for federal income taxes was $32,000. ​

Assuming a 360-day year,the interest charged by the bank,at the rate of 6%,on a 90-day,discounted note payable of $100,000 is

Notes may be issued