Chapter 11 - Discussion Questions True/ False questions- Due Wednesday, February 13, 2019 1. The failure to record an accrued liability causes a company to overstate the related expense. 2. Discounting a note payable means that the bank subtracts the interest amount from the note's face value, and the borrower receives the remainder. 3. The matching principle requires that a company record warranty expense at the time the repair is made 4. A contingent liability is a potential liability that depends on a future event arising out of a past transaction. 5. Gross pay is the total amount of employee compensation minus all deductions 6. Payroll deductions withheld from employees become a liability of the employer, 7. FICA tax, state unemployment tax, and federal unemployment tax are all expense of the employer. 8. The entry to record salary expense debits Salary Expense and credits Salary Payable to Employees for the gross pay 9. The entry to record the employer's payroll taxes includes a debit to Payroll Tax Expense 10. The payroll liability represents the payroll expense for the year