chapter 8 accounting

Universal Travel, Inc. borrowed $500,000 on November 1, 2018, and signed a twelve-month note bearing interest at 6%. Principal and interest are payable in full at maturity on October 31, 2019. In connection with this note, Universal Travel, Inc. should report interest payable at December 31, 2018, in the amount of:

5,000

The acid-test ratio is

Cash, short-term investments, and accounts receivable divided by current liabilities.

which of the following are not included in an employer's payroll tax expense State unemployment taxes. Employer portion of FICA taxes. Federal unemployment taxes. State income taxes.

state income taxes

Which of the following are employer payroll costs? I. FICA taxes. II. Federal and state unemployment taxes. III. Federal and state income taxes. IV. Employer contributions to a retirement plan.

I, II, and IV

Which of the following are withheld from an employee's salary? I. FICA taxes. II. Federal and state unemployment taxes. III. Federal and state income taxes. IV. Employee portion of health insurance.

I, III, and IV

When a company delivers a product or service for which a customer has previously paid, the company records the following:

a debit to liability account and a credit to a revenue account

which of the following are included in a employer's payroll tax expense? Federal unemployment taxes. Employer portion of FICA taxes. State unemployment taxes.

all of these

the current ratio is

current assets divided by current liabilities

working capital is

current assets minus current liabilities

which of the following is true regarding FICA taxes? FICA taxes are paid only by the employer. FICA taxes are paid in different amounts by the employee and the employer. FICA taxes are paid only by the employee. FICA taxes are paid in equal amounts by the employee and the employer

FICA taxes are paid in amounts by the employee and the employer

which of these is not an employer payroll cost FICA taxes. Employer contributions to a retirement plan. Federal and state income taxes. Federal and state unemployment taxes

federal and state income taxes

which of the following is not withheld from an employee's salary ? FICA taxes. Employee portion of health insurance. Federal and state income taxes. federal and state unemployment taxes

federal and state unemployment taxes

Discount Travel has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; and other current assets, $18 million. Discount Travel also has the following liabilities: accounts payable, $98 million; current portion of long-term debt, $35 million; and long-term debt, $23 million. Based on these amounts, what is the acid-test ratio?

1.47

Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the actual direct deposit of payroll for the first week of January?

12,843

Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the employer's total payroll tax expense for the first week of January?

2,061

Discount Travel has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; and other current assets, $18 million. Discount Travel also has the following liabilities: accounts payable, $98 million; current portion of long-term debt, $35 million; and long-term debt, $23 million. Based on these amounts, what is the current ratio?

2.98

Universal Travel, Inc. borrowed $500,000 on November 1, 2018, and signed a twelve-month note bearing interest at 6%. Principal and interest are payable in full at maturity on October 31, 2019. In connection with this note, Universal Travel, Inc. should record interest expense in 2019 in the amount of:

25,000

Mike Gundy is a college football coach making a base salary of $2,400,000 a year ($200,000 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the Social Security maximum base amount is $118,500, how much will be withheld during the year for the coach's Social Security and Medicare.

42,147

Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the actual direct deposit of payroll for the first week of January?

5,708

Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the employer's total payroll tax expense for the first week of January?

916