accounting final
rhodes borrowed $5000 by signing a 5-year note with an interest rate of 8%. on the date the note is signed, Rhodes should
credit notes payable $5000
what are two classifications for liabilities
current long-term
mathematically, the current ratio is expressed as current assets divided by
current liabilities
taxes collected for taxing authorities are recognized as
current liabilities
on november 1 ABC corp borrowed $100000 cash on a 1-year, 6% note payable that requires ABC to pay both principle and interest on october 31, 2019. The journal entry on november 1, 2018 would include which of the following
debit to cash $100000 credit to note payable $100000
if a liability is classified as current, rather than noncurrent, the company's working capital will ___________
decrease
additional benefits such as health insurance, retirement benefits, or life insurance that are paid by the employer are called __________ benefits
fringe
which of the following must employers by law withhold from their employees' pays
Federal taxes FICA contributions
which of these payroll taxes are paid only by the employer
SUTA FUTA
a company purchases inventory or supplies and promises to pay within 30 to 45 days. no formal agreement is signed. this transaction is recorded as an ______________
accounts payable
the ratio that is a more conservative measure than the current ratio of a company's ability to pay its current liabilities is the:
acid-test ratio
withholding taxes for federal and state income tax are based upon which items
amounts earned by employees number of exemptions claimed
payroll withholdings _________________
are amounts subtracted from employees' gross earnings to determine their net pay decrease the amount of cash an employee receives
the financial statement where the deferred revenue account is found is the ______________
balance sheet
a _________ is a probable future sacrifice of economic benefits arising from present obligations to transfer assets or provide services as a result of past transactions or events
liability
the mathematical formula for working capital is current assets _____________ current liabilities
minus
long-term liability-
payable more than one year from now
current liability-
payable within one year
amounts that are subtracted from an employee's gross pay are referred to as
payroll withholdings
another name for the acid-test ratio is the ____________ ratio
quick
which of the following are essential characteristics of a liability
the obligation results from a past event the future sacrifice arises from a present obligation a future sacrifice of an economic benefit is probable
an interest rate, unless otherwise specified, is typically an ___________ rate
yearly
