Chapter 11 example #6973

Estimating and recording product warranty expense in the period of the sale best follows the... A: Business Entity Concept B: Cost Concept C: Matching Concept D: Materiality Concept

Which of the following will have no effect on an employee's take-home pay? A: Unemployment Tax B: Marital Status C: Social Security Tax D: Number of Exemptions Claimed

The employee's earnings record would contain which data that the payroll register would probably not contain? A: Payment B: Cumulative Earnings C: Deductions D: Earnings

Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings? A: FICA Tax Rate B: FUTA Tax Rate C: Wage Bracket and Withholding Table D: Wage and Tax Statement

A pension plan that promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)... A: Unfunded Plan B: Defined Contribution Plan C: Compensation Plan D: Defined Benefit Plan

Which is not a determinate in calculating federal income taxes withheld from an individual's pay? A: Types of Earnings B: Filing Status C: Number of Exemptions D: Gross Pay

A current liability is a debt that is reasonably expected to be paid... A: Within one Year B: Out of cash currently on hand C: Between 6 Months and 18 Months D: Out of Currently Recognized Revenues

Which of the Following Taxes are Employers Required to Withhold from Employees? A: Federal Unemployment Tax B: FICA Tax, State, and Federal Unemployment Tax C: FICA Tax D: State Unemployment Tax

The amount of federal income taxes withheld from an employee's gross pay is recorded as a(n) A: Contra Account B: Payroll Expense C: Liability D: Asset

Zennia Company provides its employees with varying amount of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation cost is $135,000. The journal entry to record the adjusting entry required on December 31, the end of the current year, to record the current month's accrued vacation pay is... A: $67,500 B: $0 C: $11,250 D: $135,000

Which of the following would most likely be classified as a current liability A: Unearned Rent B: Two-Year Notes Payable C: Bonds Payable D: Mortgage Payable

The journal entry used to record the issuance of a discounted note for the purpose of borrowing funds for the business is A: Debit Cash and Interest Expense; Credit Notes Payable B: Debit Accounts Payable; Credit Notes Payable C: Debit Cash and Interest Payable; Credit Notes Payable D: Notes Payable; Credit Cash

The journal entry to record the conversion of a $6,300 accounts payable to a notes payable would be A: Cash 6,300 Notes Payable 6,300 B: Notes Receivable 6,300 Notes Payable 6,300 C: Notes Payable 6,300 Cash 6,300 D: Accounts Payable 6,300 Notes Payable 6,300

The detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the.... A: Payroll Check B: Employee's Earnings Record C: Payroll Register D: Employer's Earnings Record

When a borrower receives the face amount of a discounted note less the discount, the amount is known as... A: The Note Deferred Interest B: The Note Discount C: The Note Proceeds D: The Note Principal

The journal entry used to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is... A: Debit Accounts Payable Credit Notes Payable B: Debit Notes Payable Credit Cash C: Debit Cash and Interest Expense Credit Notes Payable D: Debit Cash Credit Notes Payable

Which of the following is required to be withheld from employee's gross pay A: Only Federal Unemployment Compensation Tax B: Only State Unemployment Compensation Tax C: Only Federal Income Tax D: Both Federal and State Unemployment Compensation Taxes

Current Liabilities are A: Due and Receivable Within One Year B: Due, but not Payable for more than One Year C: Due and to be Paid out of Current Assets within one Year D: Payable if a Possible Subsequent Event Occurs