Accounting

Front 1

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.

Back 1

TRUE

Front 2

Obligations not due within one year or the company's operating cycle, whichever is longer, are reported as current liabilities.

Back 2

FALSE

Front 3

All expected future payments are liabilities.

Back 3

FALSE

Front 4

A single liability can be divided between current and non-current liabilities

Back 4

TRUE

Front 5

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.

Back 5

TRUE

Front 6

Promissory notes are nonnegotiable meaning that they cannot be transferred from party to party.

Back 6

FALSE

Front 7

A note payable can be used to extend the payment due on an account payable.

Back 7

TRUE

Front 8

Required payroll deductions result from laws and include income taxes, Social Security taxes, pension and health contributions, union dues, and charitable giving.

Back 8

FALSE

Front 9

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.

Back 9

TRUE

Front 10

A high merit rating means that an employer has high employee turnover or seasonal hiring.

Back 10

FALSE

Front 11

Employers must pay FICA taxes equal in amount to the FICA taxes withheld from their employees.

Back 11

TRUE

Front 12

The state unemployment tax rates applied to an employer are adjusted according to an employer's merit rating.

Back 12

TRUE

Front 13

An estimated liability is a known obligation of an uncertain amount that can at least be reasonably estimated

Back 13

TRUE

Front 14

Accrued vacation benefits are a form of estimated liability for an employer.

Back 14

TRUE

Front 15

Companies with many employees often use a special payroll bank account to pay employees.

Back 15

TRUE

Front 16

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.

Back 16

TRUE

Front 17

A payroll register usually shows the pay period dates, hours worked, gross pay, deductions, and net pay of each employee for every pay period.

Back 17

TRUE

Front 18

A payroll register is a cumulative record of an employee's hours worked, gross earnings, deductions, and net pay.

Back 18

FALSE

Front 19

Employers must keep certain payroll records, including individual earnings reports for each employee.

Back 19

TRUE

Front 20

Federal depository banks are authorized to accept deposits of amounts payable to the federal government

Back 20

TRUE

Front 21

The Form W-2 must be given to employees before January 31 following the year overed by the Form W-2.

Back 21

TRUE

Front 22

Payments of FUTA are made quarterly to a federal depository bank if the total amount due exceeds $500.

Back 22

TRUE

Front 23

When the number of withholding allowances claimed on Form W-4 increases, the amount of income tax withheld increases.

Back 23

FALSE

Front 24

Employers can use a wage bracket withholding table to compute federal income taxes withheld from each employee's gross pay.

Back 24

TRUE