CHAPTER 8 Accounting

Note payable

is a signed contract that promises to pay a specific amount with interest at a specific maturity date.

The journal entry to record employer payroll taxes effects

liabilities and stockholder's equity

Which of the following are examples of fringe benefits provided by employers to their employees?

payment of insurance premiums on employees behalf contributions to retirement and other savings accounts reduced or no-cost company-provided services

Account payable

results from an agreement with a supplier to pay within 30 to 60 days,

fringe benefits

Additional benefits such as health insurance, retirement benefits, or life insurance that are paid by the employer are called

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

False

employer payroll costs

Federal and state unemployment taxes Employer portion of Medicare tax

Which of the following are payroll withholdings that are subtracted from gross pay to arrive at take-home pay?

Federal income taxes Health insurance paid by the employee Employee contributions to retirement plans

Identify characteristics of notes payable that are not common to accounts payable?

Interest bearing Based on promissory note

An end-of-period adjusting entry that debits Deferred Revenue most likely will credit a(n) ______ account.

Revenue

Which of the following is a guarantee that protects a customer from product defects for a specified period of time?

Warranty

Contingent gain

an existing uncertainty that might result in a gain -GAAP doesn't record

The portion of a long-term liability that will be paid within the next year is referred to and reported as the

current portion of long-term debt