Exam 11: Current Liabilities and Payroll Accounting

A) Liabilities not expected to be paid within the longer of one year or the company's operating cycle are reported as long-term liabilities.
B) Long-term liabilities include long-term notes payable,warranty liabilities,lease liabilities,and bonds payable.
C) Liabilities that do not have a fixed due date,but are payable on demand,are reported as long-term liabilities.
D) Long-term liabilities can be reported on the balance sheet in a single total or in multiple categories.
E) A single long-term liability can be divided between current and noncurrent sections on the balance sheet.

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A) The future event is probable and the amount owed can be reasonably estimated.
B) The future event is remote.
C) The future event is reasonably possible but not estimable.
D) The amount owed cannot be reasonably estimated.
E) The future event is probable but not estimable.

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A) 0.5.
B) 1.8.
C) 1.9.
D) 3.4.
E) 0.3.

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A) 0.25.
B) 0.30.
C) 0.83.
D) 3.33.
E) 4.0.

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A) Debit Cash $8,000;credit Sales $7,360;credit Sales Taxes Payable $640.
B) Debit Sales Taxes Payable $640;debit Cash $7,360;credit Sales $8,000.
C) Debit Cash $8,000;credit Sales $8,000;and record the taxes when paid.
D) Debit Cash $8,640;credit Sales $8,000;credit Sales Taxes Payable $640.
E) Debit Accounts Receivable $8,640;credit Sales $8,000;credit Sales Taxes Payable $640.

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A) Debit Vacation Benefits Expense $1,500;credit Prepaid Vacation Benefits $1,500.
B) Debit Vacation Benefits Expense $1,500;credit Vacation Benefits Payable $1,500.
C) Debit Payroll Tax Expense $1,500;credit Payroll Taxes Payable $1,500.
D) Debit Prepaid Vacation Benefits $1,500;credit Vacation Benefits Payable $1,500.
E) Debit Vacation Benefits Payable;credit Vacation Benefits Expense $1,500.

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A) Interest.
B) Principle.
C) Face Value.
D) Cash.
E) Accounts Payable.

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A) Recording estimated warranty expense complies with the full disclosure principle.
B) Warranty expense should be recorded in the period when the warranty service is performed.
C) Recording estimated warranty expense complies with the matching principle.
D) The seller reports a warranty obligation as a liability.
E) Warranty costs are probable and the amount can be estimated.

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A) $3,097.17
B) $2,443.21
C) $1,957.06
D) $1,722.00
E) $1,495.36

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A) Debit Notes Payable $7,500;credit Interest Expense $150;credit Cash $7,350.
B) Debit Notes Payable $7,500;credit Cash $7,500.
C) Debit Notes Payable $7,650;credit Cash $7,650.
D) Debit Notes Payable $7,500;debit Interest Expense $150;credit Cash $7,650.
E) Debit Cash $7,650;credit Interest Revenue $150;credit Notes Receivable $7,500.

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A) Federal depository bank account.
B) Employee's Individual Earnings account.
C) Employees' bank account.
D) Payroll register account.
E) Payroll bank account.

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A) Debit Notes Payable $9,000;debit Interest Payable $120;credit Cash $9,120.
B) Debit Cash $9,240;credit Notes Payable $9,240.
C) Debit Notes Payable $9,240;credit Interest Payable $120;credit Interest Expense $120;credit Cash $9,000.
D) Debit Notes Payable $9,000;debit Interest Payable $120;debit Interest Expense $120;credit Cash $9,240.
E) Debit Notes Payable $9,000;debit Interest Expense $240;credit Cash $9,240.

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A) Providing each employee with an annual report of his or her wages subject to FICA and federal income taxes along with the amount of these taxes withheld.
B) Filing Form 941,the Employer's Quarterly Federal Tax Return.
C) Filing Form 940,the Annual Federal Unemployment Tax Return.
D) Maintaining individual earnings records for each employee.
E) Recording an expense for the employee Federal Income Tax withholding.

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A) $26,000
B) $45,000
C) $55,000
D) $60,000
E) $90,000

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A) Consider the warranty expense a remote liability since the rate is only 2%.
B) Recognize warranty expense at the time the warranty work is performed.
C) Recognize warranty expense and liability in the year of the sale.
D) Consider the warranty expense a contingent liability.
E) Recognize warranty liability when the company purchases the bicycles.

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