1. Interest expense on an interest-bearing note is?

........only recorded at maturity when the note is paid.

.........always equal to zero.

........accrued over the life of the note.

only recorded at the time the note is issued.

2.A retail store does not segregate sales and the amount of sales tax on sales. If the sales tax rate is6% and the register total amounted to $742000, what is the amount of the sales taxes owed to the taxing agency?

$700000

$44520

$742000

$42000

3All of the following are reported as current liabilitiesexcept

bonds payable.

unearned revenues.

notes payable.

accounts payable.

Bonita, Inc. sells1280units of a product that has a one-year warranty on parts. The average cost of honoring one warranty contract is $50. During the year50contracts are honored at a total cost of $2500. It is estimated that100contracts will be honored in the following year. The adjusting entry at the end of the current year will include a

credit of Warranty Liability $5000.

credit of Warranty Liability $7500.

debit of Warranty Expense $2500.

debit of Warranty Expense $7500.

Which of the following items wouldnotbe identified if a contingent liability were disclosed in a financial statement footnote?

A numerical probability of the expected loss

The nature of the item

The expected outcome of the future event

The amount of the contingency, if known

A contingency that is remote

should be disclosed in the financial statements.

does not need to be disclosed.

is recorded as a contingent liability.

must be accrued as a loss.

The effective federal unemployment tax rate is usually

6.2%.

5.4%.

0.8%.

8.0%.

The record that provides a cumulative summary of each employee's gross earnings, payroll deductions, and net pay during the year and is required to be maintained to comply with state and local federal law is the

register.

statement of earnings.

wage and tax statement.

employee earnings record.

Smita Quinn, earns $27per hour for a 40 hour work week and $40per hour for overtime work. If Smita works46hours, her gross earnings are:

$1242.

$1320.

$2920.

$1840.