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