Chapter 10 - Current Liabilities and Payroll - Concepts

1. 1Notes may be issued

   1. Awhen assets are purchased
   2. Bto creditors to temporarily satisfy an account payable created earlier
   3. Cwhen borrowing money
   4. Dfor all of these
2. 2When a borrower receives the face amount of a discounted note less the discount, the amount is known as

   1. Athe note proceeds
   2. Bthe note discount
   3. Cthe note deferred interest
   4. Dthe note principal
3. 3A current liability is a debt that is reasonably expected to be paid

   1. Abetween 6 months and 18 months
   2. Bout of currently recognized revenues
   3. Cwithin one year
   4. Dout of cash currently on hand
4. 4Current liabilities are

   1. Adue and receivable within one year
   2. Bdue and to be paid out of current assets within one year
   3. Cdue, but not payable for more than one year
   4. Dpayable if a possible subsequent event occurs
5. 5Which of the following would most likely be classified as a current liability?

   1. Atwo-year notes payable
   2. Bbonds payable
   3. Cmortgage payable
   4. Dunearned rent
6. 6The current portion of long-term debt should

   1. Abe classified as a long-term liability
   2. Bnot be separated from the long-term portion of debt
   3. Cbe paid immediately
   4. Dbe reclassified as a current liability
7. 7The amount of federal income taxes withheld from an employee's gross pay is recorded as a(n)

   1. Apayroll expense
   2. Bcontra account
   3. Casset
   4. Dliability
8. 8Which is not a determinate in calculating federal income taxes withheld from an individual's pay?

   1. Afiling status
   2. Btypes of earnings
   3. Cgross pay
   4. Dnumber of exemptions
9. 9Which of the following taxes would be deducted in determining an employee's net pay?

   1. AFUTA
   2. BSUTA
   3. CFICA
   4. DAll are correct
10. 10Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?

    1. AFICA tax rate
    2. Bwage and tax statement
    3. CFUTA tax rate
    4. Dwage bracket and withholding table

11. 11Which of the following taxes are employers required to withhold from employees?

    1. AFICA tax
    2. BFICA tax, state, and federal unemployment tax
    3. Cstate unemployment tax
    4. Dfederal unemployment tax
12. 12The total earnings of an employee for a payroll period is referred to as

    1. Atake-home pay
    2. Bpay net of taxes
    3. Cnet pay
    4. Dgross pay
13. 13Most employers are levied a tax on payrolls for

    1. Asales tax
    2. Bmedical insurance premiums
    3. Cfederal unemployment compensation tax
    4. Dunion dues
14. 14Which of the following will have no effect on an employee’s take-home pay?

    1. Asocial security tax
    2. Bunemployment tax
    3. Cmarital status
    4. Dnumber of exemptions claimed
15. 15Which of the following are included in the employer's payroll taxes?

    1. ASUTA taxes
    2. BFUTA taxes
    3. Csocial security taxes
    4. Dall are included in employer taxes
16. 16Which of the following is required to be withheld from employee's gross pay?

    1. Aboth federal and state unemployment compensation taxes
    2. Bonly federal unemployment compensation tax
    3. Conly federal income tax
    4. Donly state unemployment compensation tax
17. 17. Each year there is a ceiling for the amount that is subject to all of the following except

    1. Asocial security tax
    2. Bfederal income tax
    3. Cfederal unemployment tax
    4. D. state unemployment tax
18. 18An aid in internal control over payrolls that indicates employee attendance is

    1. Atime card
    2. Bvoucher system
    3. Cpayroll register
    4. Demployee's earnings record
19. 19A pension plan that requires the employer to make annual pension contributions, with no promise to
    employees regarding future pension payments, is termed

    1. Afunded
    2. Bunfunded
    3. Cdefined benefit
    4. Ddefined contribution
20. 20A pension plan that promises employees a fixed annual pension benefit, based on years of service
    and compensation, is called a(n)

    1. Adefined contribution plan
    2. Bdefined benefit plan
    3. Cunfunded plan
    4. Dcompensation plan
21. 21. Vacation pay payable is reported on the balance sheet as a(n)

    1. Acurrent liability or long-term liability, depending upon when the vacations will be taken by employees
    2. Bcurrent liability
    3. Cexpense
    4. Dlong-term liability
22. 22An unfunded pension liability is reported on the balance sheet as

    1. Acurrent liability
    2. Bowner's equity
    3. Clong-term liability
    4. Dcurrent liability or long-term liability, depending upon when the pension liability is to be paid
23. 23Quick Assets Include

    1. Acash, cash equivalents, receivables, prepaid expenses, and inventory
    2. Bcash, cash equivalents, receivables, and prepaid expenses
    3. Ccash, cash equivalents, receivables, and inventory
    4. Dcash, cash equivalents, and receivables
24. 24Which of the following is the most desirable quick ratio?

    1. A1.20
    2. B1.00
    3. C0.95
    4. D0.50

Description

durka Business/Economics Quiz on Chapter 10 - Current Liabilities and Payroll - Concepts, created by Mahmoud Hemood on 15/05/2018.

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Mahmoud Hemood

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Created on 15 May 2018 · updated on 16 May 2018

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