Potential liabilities that may arlse in the future because of past transactions are called contingent liabilities..- All changes in the constants of the payroll system, such as changes in pay rates, should be properly authorized in writing The net periodic pension cost of a defined benefit plan is debited to Pension Expense, the amount funded is credited to Cash, and any unfunded amount is credited to Unfunded Pension Revenue. 11. 12. 13. Examples of postretirement benefits from an employer may include dental care, eye care, medical care, life insurance, tuition assistance, or tax services..._ 14. 15. The rate used by a bank in discounting a note is called the prime rate. FILL IN THE BLANK-PART A Instructions: Answer the following questions or complete the statements by 1. The maturity value of a 90-day, 12%, $30,000 note payable is 2. In buying equipment, a business issues a $90,000, 180-day note dated writing the appropriate words or amounts in the answer blanks. January 17, which the seller discounts at 12%. The cost of the equipment would be recorded at 3. The total earnings of an employee for a payroll period are called pay. is the amount the employer is obligated to pay the employee after payroll deductions. 5. ax is used to finance federal programs for old-age and disability benefits (social security) and health insurance for the aged (Medicare). is a 6. A(n) 7. Employer's payroll taxes become liabilities when the related employee 8. A pension plan that promises employees a fixed annual pension beneft 9. Rights to benefits that employees eam during their term of employment but detailed record of each employee's eamings. payroll is based on years of service and compensation levels is called a(n) plan. take effect after they retire are called benefits. 10. The ratio measures the ability to pay current liabilities within a short period of time