Question 1

Which of the following taxes would be deducted in determining an employee's net pay?

Accepted Answer

A)   FUTA taxes
B)   SUTA taxes
C)   FICA taxes
D)   all of the aboveE) A) and B)
F) B) and D)

Question 2

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 paidE) C) and D)
F) All of the above

Question 3

An employee earns $40 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week, and that the gross pay prior to the current week totaled $58,000. Assume further that the social security tax rate was 7.0% (on earnings up to $100,000), the Medicare tax rate was 1.5%, and the federal income tax to be withheld was $614.
Required:
(1) Determine the gross pay for the week.
(2) Determine the net pay for the week.

Accepted Answer

The answer of An employee earns $40 per hour and...

Question 4

Notes may be issued

Accepted Answer

A)   when assets are purchased
B)   to creditor's to temporarily satisfy an account payable created earlier
C)   when borrowing money
D)   all of the aboveE) B) and D)
F) A) and B)

Question 5

A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)

Accepted Answer

A)   defined contribution plan
B)   defined benefit plan
C)   unfunded plan
D)   compensation planE) All of the above
F) C) and D)

Question 6

The Crafter Company had the following assets and liabilities as of December 31, 2012:  Determine the quick ratio for the end of the year (rounded to one decimal point) .

Accepted Answer

A)   6.7
B)   13.0
C)   4.2
D)   3.5E) A) and B)
F) B) and D)

Question 7

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 plansE) A) and D)
F) All of the above

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 principalE) B) and C)
F) None of the above

Question 9

In order to be a recorded contingent liability, the liability must be possible and easily estimated.

Accepted Answer

A) True 
 B)False

Exam 11: Current Liabilities and Payroll

An unfunded pension liability is reported on the balance sheet as

Correct Answer
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In order to be a recorded contingent liability, the liability must be possible and easily estimated.

Correct Answer
verified

Notes may be issued

Correct Answer
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A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)

Correct Answer
verified

The Crafter Company had the following assets and liabilities as of December 31, 2012: Determine the quick ratio for the end of the year (rounded to one decimal point) .

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
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Which of the following taxes would be deducted in determining an employee's net pay?

Correct Answer
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Correct Answer
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Exam 11: Current Liabilities and Payroll

An unfunded pension liability is reported on the balance sheet as

Correct AnswerverifiedShow Answer

In order to be a recorded contingent liability, the liability must be possible and easily estimated.

Correct AnswerverifiedShow Answer

Notes may be issued

Correct AnswerverifiedShow Answer

A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)

Correct AnswerverifiedShow Answer

The Crafter Company had the following assets and liabilities as of December 31, 2012: Determine the quick ratio for the end of the year (rounded to one decimal point) .

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Which of the following taxes would be deducted in determining an employee's net pay?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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