1. Current liabilities are
a. due, but not receivable for more than one year
b. due, but not payable for more than one year
c. due and receivable within one year
d. due and payable within one year.
2. On June 8, Acme Co. issued an $80,000, 6% , 120-day note payable to Still Co. What is the due date of the note?
a. October 8
b. October 7
c. October 6
d. October 5
3. The interest deducted from the maturity value of a note is called
a. proceeds
b. discount
c. face value
d. maturity value
4. The maturity value of an interest-bearing note payable is the
a. face value plus the interest
b.face value minus the interest
c. interest
d. face value
5. Which of the following would most likely be classified as a current liability?
a. Two-year notes payable
b. Bonds Payable.
c. Mortgage payable
d. Unearned Rent
6. The current portion of long-term debt should
a. be classified as a long-term liability
b. not be separated from the long-term portion of debt
c. be paid immediately
d. be reclassified as a current liability.
7. The amount of federal income taxes withheld from an employee's gross pay is recorded as a
a. payroll expense
b. contra account
c. asset
d. liability
8. Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?
a. FICA tax rate
b. wage and tax statement
c. FUTA tax rate
d. wage bracket and withholding table
9. Which of the following taxes would be deducted in determining an employee's net pay?
a. FUTA taxes
b. SUTA taxes
c. FICA taxes
d. all of the above
10. Payroll taxes levied against employees become liabilities
a. the first of the following month
b. at the time the payroll is paid
c. when earned by the employee
d. at the end of an accounting period
11. Payroll entries are made with data from the
a. wage and tax statement
b. employee's earning record
c. employer's quarterly federal tax return
d. payroll register
12. The required form that is filed with the Internal Revenue Service showing the amount due for income taxes withheld and FICA taxes is the
a. Employment Withholding Allowance Certificate (Form 941)
b. Wage and Tax Statement (Form W-2)
c. Employer's Quarterly Federal Tax Return (Form 941)
d. Corporate Income Tax Return (Form 1120)
13. The detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the
a. payroll register
b. payroll check
c. employee's earnings record
d. employer's earnings record
14. Which of the following is an example of a variable component of a payroll system?
a. hours worked
b. Medicare tax rate
c. rate of pay
d. Social security tax rate
15. An aid in internal control over payrolls that indicates employee attendance is
a. "clock card"
b. voucher system
c. payroll register
d. employee's earnings record
16. A pension plan which requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed
a. funded
b. unfunded
c. defined benefit
d. defined contribution
17. Vacation pay payable is reported on the balance sheet as
a. current liability or long-term liability, depending upon when the vacations will be taken by employees
b. current liability
c. owner's equity
d. long-term liabilities
18. Quick assets include
a. cash; cash equivalents, receivables, prepaid expenses, and inventory
b. cash; cash equivalents, receivables, and prepaid expenses
c. cash; cash equivalents, receivables, and inventory
d.cash; cash equivalents, and receivables
19. The cost of a product warranty should be included as an expense in the
a. period the cash is collected for a product sold on account
b. future period when the cost of repairing the product is paid
c. period of the sale of the product
d. future period when the product is repaired or replaced
20. Estimating and recording product warranty expense in the period of the sale best follows which of the following accounting concepts
a. Cost concept
b. Business entity concept
c. Matching Concept
d. Materiality concept
a. due, but not receivable for more than one year
b. due, but not payable for more than one year
c. due and receivable within one year
d. due and payable within one year.
2. On June 8, Acme Co. issued an $80,000, 6% , 120-day note payable to Still Co. What is the due date of the note?
a. October 8
b. October 7
c. October 6
d. October 5
3. The interest deducted from the maturity value of a note is called
a. proceeds
b. discount
c. face value
d. maturity value
4. The maturity value of an interest-bearing note payable is the
a. face value plus the interest
b.face value minus the interest
c. interest
d. face value
5. Which of the following would most likely be classified as a current liability?
a. Two-year notes payable
b. Bonds Payable.
c. Mortgage payable
d. Unearned Rent
6. The current portion of long-term debt should
a. be classified as a long-term liability
b. not be separated from the long-term portion of debt
c. be paid immediately
d. be reclassified as a current liability.
7. The amount of federal income taxes withheld from an employee's gross pay is recorded as a
a. payroll expense
b. contra account
c. asset
d. liability
8. Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?
a. FICA tax rate
b. wage and tax statement
c. FUTA tax rate
d. wage bracket and withholding table
9. Which of the following taxes would be deducted in determining an employee's net pay?
a. FUTA taxes
b. SUTA taxes
c. FICA taxes
d. all of the above
10. Payroll taxes levied against employees become liabilities
a. the first of the following month
b. at the time the payroll is paid
c. when earned by the employee
d. at the end of an accounting period
11. Payroll entries are made with data from the
a. wage and tax statement
b. employee's earning record
c. employer's quarterly federal tax return
d. payroll register
12. The required form that is filed with the Internal Revenue Service showing the amount due for income taxes withheld and FICA taxes is the
a. Employment Withholding Allowance Certificate (Form 941)
b. Wage and Tax Statement (Form W-2)
c. Employer's Quarterly Federal Tax Return (Form 941)
d. Corporate Income Tax Return (Form 1120)
13. The detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the
a. payroll register
b. payroll check
c. employee's earnings record
d. employer's earnings record
14. Which of the following is an example of a variable component of a payroll system?
a. hours worked
b. Medicare tax rate
c. rate of pay
d. Social security tax rate
15. An aid in internal control over payrolls that indicates employee attendance is
a. "clock card"
b. voucher system
c. payroll register
d. employee's earnings record
16. A pension plan which requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed
a. funded
b. unfunded
c. defined benefit
d. defined contribution
17. Vacation pay payable is reported on the balance sheet as
a. current liability or long-term liability, depending upon when the vacations will be taken by employees
b. current liability
c. owner's equity
d. long-term liabilities
18. Quick assets include
a. cash; cash equivalents, receivables, prepaid expenses, and inventory
b. cash; cash equivalents, receivables, and prepaid expenses
c. cash; cash equivalents, receivables, and inventory
d.cash; cash equivalents, and receivables
19. The cost of a product warranty should be included as an expense in the
a. period the cash is collected for a product sold on account
b. future period when the cost of repairing the product is paid
c. period of the sale of the product
d. future period when the product is repaired or replaced
20. Estimating and recording product warranty expense in the period of the sale best follows which of the following accounting concepts
a. Cost concept
b. Business entity concept
c. Matching Concept
d. Materiality concept