Accounting chapter 7-9
Cash/payroll checking is a/an:
Asset
If salaries payable is debited, what account would most likely be credited?
Cash
A Paystub will include all except
FUTA withheld
Net pay equals
Gross pay less all deductions.
Why should a company use a separate payroll cash account?
Provides for better control, ease of account reconciliation, determine whether or not the employee has cashed their check
W-4 Form
Provides the number of dependents an employee has claimed
Merchants who buy good from wholesalers for resale to customers are
Retailers
The amount of federal income tax withheld from an employee during the year is determined by the employee's:
W-4 form
Sales revenue less cost of goods sold equals
gross profit
What type of account is wages and salaries payable?
liability
Under the fair labor standards act, for any hours that an employee works over 40 during a work week
the employee is paid time and a half
Credit terms of 3/15, n/30 mean that
A 3% discount is allowed if the customer pays the bill within 15 days, or the entire amount is due within 30 days
The federal insurance contribution act is better known as
FICA
When paying the FICA Social Security payable, the ____________ account is debited
FICA Social Security Payable
Payroll taxes paid by employees include all the following except
Federal income tax, state income tax, FICA social security
An account in the general ledger that accumulates the amount of sales tax owed.
Sales Tax Payable
From the sellers perspective, a reduction given to customers for early payment is
Sales discount
There are two parts of FICA
Social security and Medicare
The time frame when customers are allowed to pay their bills and still be eligible for a discount is the:
discount period
The contra revenue accounts include
sales discounts and sales returns and allowances