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24 Cards in this Set

  • Front
  • Back
A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.
TRUE
Obligations not due within one year or the company's operating cycle, whichever is longer, are reported as current liabilities.
FALSE
All expected future payments are liabilities.
FALSE
A single liability can be divided between current and non-current liabilities
TRUE
A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle, whichever is longer.
TRUE
Promissory notes are nonnegotiable meaning that they cannot be transferred from party to party.
FALSE
A note payable can be used to extend the payment due on an account payable.
TRUE
Required payroll deductions result from laws and include income taxes, Social Security taxes, pension and health contributions, union dues, and charitable giving.
FALSE
The amount of federal income tax withheld depends on the employee's annual earnings rate and the number of withholding allowances claimed by the employee.
TRUE
A high merit rating means that an employer has high employee turnover or seasonal hiring.
FALSE
Employers must pay FICA taxes equal in amount to the FICA taxes withheld from their employees.
TRUE
The state unemployment tax rates applied to an employer are adjusted according to an employer's merit rating.
TRUE
An estimated liability is a known obligation of an uncertain amount that can at least be reasonably estimated
TRUE
Accrued vacation benefits are a form of estimated liability for an employer.
TRUE
Companies with many employees often use a special payroll bank account to pay employees.
TRUE
Each employee records the number of withholding allowances claimed on form W-4, which is the withholding allowance certificate that is filed with the employer.
TRUE
A payroll register usually shows the pay period dates, hours worked, gross pay, deductions, and net pay of each employee for every pay period.
TRUE
A payroll register is a cumulative record of an employee's hours worked, gross earnings, deductions, and net pay.
FALSE
Employers must keep certain payroll records, including individual earnings reports for each employee.
TRUE
Federal depository banks are authorized to accept deposits of amounts payable to the federal government
TRUE
The Form W-2 must be given to employees before January 31 following the year overed by the Form W-2.
TRUE
Payments of FUTA are made quarterly to a federal depository bank if the total amount due exceeds $500.
TRUE
When the number of withholding allowances claimed on Form W-4 increases, the amount of income tax withheld increases.
FALSE
Employers can use a wage bracket withholding table to compute federal income taxes withheld from each employee's gross pay.
TRUE