Biology

On July 1, Scene Co. borrowed $15,000 cash from First Bank by signing a 30-day, 5% interest-bearing note. Scene will record this entry with a credit to Notes Payable in the amount of $

15,000

Simar Sales Co. sells and installs kitchen appliances. Simar guarantees parts and labor for one year after installation. Simar would record potential claims in a(n) _______ account. Multiple choice question. Estimated Warranty Liability Miscellaneous Repairs Expense Customer Satisfaction

Estimated Warranty Liability

Leo Calvin is required to have ______ taxes withheld from his pay in order to cover the cost of future retirement, disability, survivorship and medical benefits. Multiple choice question. FICA SUTA FUTA WICA

FICA

Federal government taxes implemented on employers in order to provide unemployment benefits to qualified workers are known as (use acronym)

FUTA

State unemployment taxes imposed on employers in order to provide unemployment benefits to qualified workers are known as (use acronym)

SUTA

_______ is(are) the total compensation an employee earns including wages, salaries, commissions, bonuses, and any compensation earned before deductions such as taxes. Multiple choice question. Gross pay Net pay Payroll deductions Hourly rate

gross pay

Employee income tax depends on: (Check all that apply). Multiple select question. employer's income number of employer withholding allowances number of employee withholding allowances employee's income

number of employee withholding allowances employee's income

A potential legal claim is recorded Multiple choice question. only if payment for damages is reasonably possible and the amount is reasonable. only if the claim can be reasonably estimated. only if payment for damages is probable and the amount can be reasonably estimated. only if the claim cannot be reasonably estimated but is reasonably possible.

only if payment for damages is probable and the amount can be reasonably estimated.

Amounts withheld from an employee's gross pay are called: Multiple choice question. payroll deductions bonus deductions net pay wages payable

payroll deductions

the of a note is the amount that the signer of a note agrees to pay back when it matures, not including interest. Listen to the complete question

principal

Employers often withhold amounts from employees' earnings which arise from employee requests, contracts, unions, or other agreements. These withholdings are called employee __________ and include items such as medical premiums. Multiple choice question. FICA taxes voluntary deductions unemployment taxes income taxes

voluntary deductions

A is a seller's obligation to replace or fix a product (or service) that fails to perform as expected within a specified period.

warranty

Which of the following represent reasonably possible contingent liabilities? Select all that apply. Multiple select question. debt guarantees accounts payable potential legal claims warranties

debt guarantees potential legal claims

A known obligation of an uncertain amount that can be reasonably estimated is called a(n) liability.

estimated

State unemployment taxes imposed on employers in order to provide unemployment benefits to qualified workers are known as: Multiple choice question. SICA FICA SUTA FUTA

suta

The ratio of income before interest expense (and any income taxes) divided by interest expense reflects the risk of a company not being able to pay fixed expenses if sales decline is called the ____________ ratio. Multiple choice question. times interest earned interest turnover interest payment

times interest earned

Examples of employee voluntary deductions may include all of the following except: Multiple choice question. unemployment taxes. pension contributions. charitable giving. medical premiums.

unemployment taxes.

Employers often withhold amounts from employees' earnings which arise from employee requests, contracts, unions, or other agreements. These withholdings are called employee __________ and include items such as medical premiums. Multiple choice question. income taxes voluntary deductions unemployment taxes FICA taxes

voluntary deductions

is the difference between the amount borrowed and the amount repaid.

Interest

Which of the following items is not a payroll deduction? Multiple choice question. FICA taxes Employee income tax Net pay Federal income tax

Net pay

On June 1, Button Co. borrowed $1,000 cash from National Bank by signing a 120-day, 6% interest-bearing note. Button will record this transaction with a credit to _____ in the amount of ______. Multiple choice question. Cash; $1,060 Notes Payable; $1,000 Cash; $1,000 Notes Payable; $1,020 Cash; $1,020 Notes Payable; $1,060

Notes Payable; $1,000

On June 1, Button Co. borrowed $1,000 cash from National Bank by signing a 120-day, 6% interest-bearing note. Button will record this transaction with a credit to _____ in the amount of ______. Multiple choice question. Notes Payable; $1,000 Notes Payable; $1,020 Cash; $1,000 Cash; $1,060 Notes Payable; $1,060 Cash; $1,020

Notes Payable; $1,000

Employers must pay employee taxes in addition to those paid by the employees. Which of the following is paid only by the employer? Multiple choice question. Federal taxes State taxes Insurance premiums Unemployment FICA

Unemployment

Boyd's Bicycle Sales and Repairs Co. offers a 6-month warranty on all new bicycle purchases. Based on history, Boyd determines that warranty repairs are equal to approximately 2% of sales. During the month, Boyd sales total $20,000. Boyd will record Warranty Expense in the amount of ______ for the month. Multiple choice question. $400 $20,400 $0

400

Jorge Lopez worked 40 hours this week and earned $1,000 in total compensation. Federal and state taxes and other withholdings totaled $350. Jorge's gross pay totals

1000

On January 8, Lee Co. borrows $100,000 cash from National Bank by signing a 90-day, 6% interest note. On April 8, Lee Co. will pay National Bank a total of $101,500. Principal on the note totals

100000

Jorge Lopez worked 40 hours this week and earned $1,000. Federal and state taxes, and other withholdings totaled $350. Jorge's net pay totals $

650

The Federal Insurance Contributions Act provides retirement, disability, survivorship, and medical benefits to qualified workers. Laws require employers to withhold _____ taxes from employees' pay to cover costs of the system. Multiple choice question. SUTA FICA AAA WICA

FICA

The federal government requires that employers are taxed on employee wages to provide unemployment benefits to qualified workers. These taxes are known as: Multiple choice question. SICA SUTA FICA FUTA

FUTA

When a company guarantees the payment of debt owed by a supplier, customer or another company, the guarantor usually discloses the guarantee as a _ liability.

contingent

Amounts withheld from employee's earnings for employee income tax is considered a _____ by the employer until the government is paid. Multiple choice question. current liability current asset long-term asset long-term liability

current liability

Unemployment taxes are examples of (employee/employer) taxes. Listen to the complete question

employer

A(n) ______ liability is a known obligation that is of an uncertain amount but that can be reasonably estimated. Multiple choice question. unreal multi-period estimated uncertain

estimated

Examples of employee voluntary deductions may include all of the following except: Multiple choice question. pension contributions. charitable giving. medical premiums. unemployment taxes.

unemployment taxes.

Kenesha Co. reported income before interest expense and income taxes of $30,000; interest expense of $3,000; and income taxes of $4,000. Calculate the times interest earned ratio. Multiple choice question. 0.13 10 7.5 0.10

(30,000/3000)=10

Trighton's Trailer Co. sells trailers and provides a one-year warranty on all new trailer sales. Based on history, Trighton anticipates that 2% of trailers will be returned and will have a warranty cost of $100 per trailer. During the month, Victor sold 300 trailers for a total of $255,000. At the end of the month, Trighton will record $ in warranty expense.

600

On January 8, Lee Co. borrows $100,000 cash from National Bank by signing a 90-day, 6% interest note. On April 8, Lee Co. will pay National Bank a total of $101,500. The difference between the amount paid back to National Bank of $101,500 and the amount borrowed of $100,000 (or $1,500) represents expense.

interest

Which of the following situations would not be required to be recorded in the financial statements or reported as a note to the financial statements? Multiple choice question. The liability is possible, but cannot be reasonably estimated. The liability is remote and estimated to be $30,000. The liability is possible and estimated to be $25,000. The liability is probable, but the amount cannot be reasonably estimated. The liability is probable and estimated to be $10,000.

The liability is remote and estimated to be $30,000.