Goodwill refers to the excess of purchase price of a business over the fair value of its net assets. The balance in Accumulated Depreciation account is deducted from the cost of fixed assets on the balance sheet. Fixed assets are reported at their book value on the balance sheet. Obligations that depend on future events and are based on past transactions are contingent liabilities In order to record a contingent liability, the liability must be probable and reasonably estimated. 6. 7. 8. 9. 10. 11. The total earnings of an employee for a payroll period is referred to as the net pay. 12. T_Most employers are required to withhold a port ployers are required to withhold a portion of the earnings of each employee for FICA tax