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