Acct 1

Notes payable is classified as a liability that has which of the following effects?

Creates interest expense on the income statement

True or false: An employer pays federal unemployment tax as a percentage of an employee's total pay for the year.

False

Which of the following must employers by law withhold from their employees' pay? contributions toward retirement funds unemployment taxes Health insurance contributions Federal income taxes

Federal income taxes

By law, an employer is required to pay which of the following amounts as payroll taxes? Life insurance premiums Health insurance premiums Federal unemployment tax Social Security contributions Medicare contributions

Federal unemployment tax Social Security contributions Medicare contributions

Product warranties, effects of environmental problems, and lawsuits are examples of transactions or events that give rise to

contingent

Rhodes borrowed $5,000 by signing a 5-year note with an interest rate of 8%. On the date the note is signed, Rhodes should

credit notes payable $5,000.

A(n) _____ payable is a short-term liability that occurs when a company purchases goods and does not immediately pay with cash

account

Which of the following may be classified as contingent liabilities?

future litigation losses Product warranties Frequent flier program awards

Amounts that are subtracted from an employee's gross pay are referred to as

payroll withholdings.

Which of these payroll taxes are paid only by the employer?

SUTA FUTA

Which of these payroll taxes are paid by the employer and the employee?

Social Security Medicare

Which of the following payroll-related taxes must the employer pay by law? Unemployment taxes Contributions toward retirement funds Union dues Federal Insurance Contributions Act amounts

Unemployment taxes Federal Insurance Contributions Act amounts

Which of the following payroll-related taxes must the employer pay by law? Unemployment taxes Union dues Federal Insurance Contributions Act amounts Contributions toward retirement funds

Unemployment taxes Federal Insurance Contributions Act amounts

Payroll withholdings ______. (Select all that apply.) decrease the amount of cash an employee receives are amounts added to employees' gross earnings to determine their net pay increase the amount of cash an employee receives are amounts subtracted from employees' gross earnings to determine their net pay are voluntary

decrease the amount of cash an employee receives are amounts subtracted from employees' gross earnings to determine their net pay

True or false: Your employer is allowed to keep the amounts withheld from your gross pay.

False Your employer is required to send payroll deductions to the appropriate government agency or company.

Which of the following are not required to be deducted from an employee's paycheck?

State unemployment tax (SUTA) Charitable contributions Federal unemployment tax (FUTA)

Common current liabilities include:

The current portion of long-term debt Sales tax payable Deferred revenues

Taxes subtracted from employees' pay and remitted to the government on their behalf are called emittance payment taxes. retirement contribution taxes. employer payroll taxes. withholding taxes.

withholding taxes.