AAC101 Exam 4

The effective federal unemployment tax rate is usually

0.8%

The entry to record the proceeds upon issuing an interest-bearing note is

Cash Notes Payable

The tax that is paid equally by the employer and employee is the

FICA tax

Which one of the following payroll taxes does not result in a payroll tax expense for the employer?

Federal income tax

Which of the following employees would likely receive a salary instead of wages?

Sales manager

A note payable is

a written promise

The current portion of long-term debt should

be reclassified as a current liability

All of the following are reported as current liabilities except

bonds payable

Most companies pay current liabilities

by creating long-term liabilities

Sales taxes collected by a retailer are recorded by

crediting Sales Taxes Payable

Any balance in an unearned revenue account is reported as a(n)

current liability

The record that provides a cumulative summary of each employee's gross earnings, payroll deductions, and net pay during the year and is required to be maintained to comply with state and local federal law is the

employee earnings record.

The accounting for warranty costs is based on the

expense recognition principle

Employer payroll taxes include all of the following except

federal income taxes.

Employee payroll deductions include each of the following except

federal unemployment taxes.

The total compensation earned by an employee is called

gross earnings

Sales taxes collected by the retailer are recorded as a(n)

liability

Liabilities are classified on the balance sheet as current or

long-term

A payroll record that accumulates the gross earnings, deductions, and net pay by employee for each pay period is the

payroll register.

Unearned Rent Revenue is

reported as a current liability.

Warranty expenses are reported on the income statement as

selling expenses.

The paid absence that is most commonly accrued is

vacation time.

By January 31 following the end of a calendar year, an employer is required to provide each employee with a(n)

wage and tax statement form W-2.

A current liability is a debt that can reasonably be expected to be paid

within one year or the operating cycle, whichever is longer.