accounting final

rhodes borrowed $5000 by signing a 5-year note with an interest rate of 8%. on the date the note is signed, Rhodes should

credit notes payable $5000

what are two classifications for liabilities

current long-term

mathematically, the current ratio is expressed as current assets divided by

current liabilities

taxes collected for taxing authorities are recognized as

current liabilities

on november 1 ABC corp borrowed $100000 cash on a 1-year, 6% note payable that requires ABC to pay both principle and interest on october 31, 2019. The journal entry on november 1, 2018 would include which of the following

debit to cash $100000 credit to note payable $100000

if a liability is classified as current, rather than noncurrent, the company's working capital will ___________

decrease

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

fringe

which of the following must employers by law withhold from their employees' pays

Federal taxes FICA contributions

which of these payroll taxes are paid only by the employer

SUTA FUTA

a company purchases inventory or supplies and promises to pay within 30 to 45 days. no formal agreement is signed. this transaction is recorded as an ______________

accounts payable

the ratio that is a more conservative measure than the current ratio of a company's ability to pay its current liabilities is the:

acid-test ratio

withholding taxes for federal and state income tax are based upon which items

amounts earned by employees number of exemptions claimed

payroll withholdings _________________

are amounts subtracted from employees' gross earnings to determine their net pay decrease the amount of cash an employee receives

the financial statement where the deferred revenue account is found is the ______________

balance sheet

a _________ is a probable future sacrifice of economic benefits arising from present obligations to transfer assets or provide services as a result of past transactions or events

liability

the mathematical formula for working capital is current assets _____________ current liabilities

minus

long-term liability-

payable more than one year from now

current liability-

payable within one year

amounts that are subtracted from an employee's gross pay are referred to as

payroll withholdings

another name for the acid-test ratio is the ____________ ratio

quick

which of the following are essential characteristics of a liability

the obligation results from a past event the future sacrifice arises from a present obligation a future sacrifice of an economic benefit is probable

an interest rate, unless otherwise specified, is typically an ___________ rate

yearly