Acctg 201: Chapter 8 Learnsmart Questions
Liability definition
A present responsibility to sacrifice assets in the future due to a transaction or other event that happened in the past
Fringe benefits
Additional benefits such as health insurance, retirement benefits, or life insurance that are paid by the employer
What is kind of rate is an interest rate?
Annual rate
What is the financial statement where deferred revenue is found?
Balance sheet
What are current maturities of long-term liabilities classified as?
Current liabilities
What are taxes collected for taxing authorities recognized as?
Current liabilities
Which payroll taxes are paid ONLY by the employer?
FUTA, SUTA
What is tax collected on sales on the balance sheet classified as?
It's classified as a liability
Current portion of long term debt definition
The portion of a long-term liability that will be paid within the next year
What is the feature that distinguishes loss contingencies from other liabilities?
The uncertainty that a loss will occur
Does management prefer to classify liabilities as long term or current?
They prefer classifying them as long-term
By law, an employer is required to pay which amounts as payroll taxes?
Medicare contributions, social security contributions, and federal unemployment tax
Withholding taxes for federal and state income tax are based upon which items?
Number of exemptions claimed and amounts earned by employees