Employers:

Pay FICA taxes equal to the amount of FICA taxes withheld from the employees.

Withhold employees FICA taxes

Pay unemployment taxes to the federal government

Pay unemployment taxes to both the state and federal governments

All of these

When using the allowance method of accounting for uncollectible accounts, the entry to record the bad debts expense is a debit to Bad Debts Expense and a credit to Accounts Receivable

True or False

The times interest earned ratio reflects:

company's ability to pay its operating expenses on time

company's ability to pay interest even if sales decline

company's profitability

the relation between income and debt

the relation between assets and liabilities

Equipment with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

$50,000

$5,000

$45,000

Zero. this is an operating activity

Zero this is a financing activity