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36) 36) Which of the following is TRUE of goodwill? A) Goodwill must be expensed when acquired. B) Goodwill must be capitalized when acquired and

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36) 36) Which of the following is TRUE of goodwill? A) Goodwill must be expensed when acquired. B) Goodwill must be capitalized when acquired and amortized over seven years or less. C) Goodwill is not amortized. D) Both created and acquired goodwill must be recorded in the books 37 - 37) Which of the following accounts is credited by the seller when tax is collected on retail sales? A) Payroll Tax B) Accounts Payable C) Sales Tax Payable D) Unearned Revenue 38) 38) Cash received in advance of providing goods or performing services is recorded as A) Accrued Revenue B) Uneamed Revenue C) Service Revenue D) Uncollected Revenue 39) - 39) Which of the following accounts will be credited by the borrower when a promissory note is issued? A) Interest Payable B) Note Payable C) Note Receivable D) Cash 40) 40) The current portion of long-term notes payable is A) typically included with the long-term liabilities on the balance sheet B) reclassified as current for reporting purposes on the balance sheet C) recorded as an adjusting entry Dy the amount of principal that will be paid within five years 41) Regarding gross and net pay, which of the following statements is correct? A) Net pay represents the total salaries and wages expense to the employer. B) Employers are required to deposit net pay into the employee's bank account C) Gross pay minus all deductions such as income tax withheld equals net pay. D) For most businesses, gross pay equals net pay. 41) 42) Which of the following is required to be deducted from employees' paychecks? A) SUTA B) charitable contributions C) FUTA D) federal income tax 43) Which of the following taxes has a ceiling on the amount of annualeamings subject to tax? A) sales tax B) FICA-Medicare taxes C) FICA-OASDI taxes D) federal income tax 44) Which of the following is paid by the employer only? A) employee income tax B) federal unemployment tax C) OASDI tax D) Medicare tax

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