Question 31

2pts

Warranties are-an example of a:

Group of answer choices

Prepaid expense.

Known liability.

Contingent liability.

Long-term liability.

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Question 32

2pts

When a contingent liability is probable and can be estimated it should be:

Group of answer choices

Ignored.

Accounted by recording and disclosing the liability.

Recorded as a liability and a reduction in assets.

Disclosed in the footnotes.

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Question 33

2pts

If a pending lawsuit is reasonably possible, it should be:

Group of answer choices

Not mentioned.

Recorded as a liability.

Disclosed in the notes to the financial statements.

Recorded as a loss.

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Question 34

2pts

Which of the following is not an employee payroll deduction?

Group of answer choices

Federal unemployment tax

Federal income tax.

Medicare tax.

Social security tax.

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Question 35

2pts

Gross earnings less payroll deductions is:

Group of answer choices

Salaries expense.

Total payroll.

Net pay.

Payroll withholdings.

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Question 36

2pts

FICA taxes is commonly referred as:

Group of answer choices

Unemployment taxes.

Employee income taxes.

Social Security and Medicare taxes.

Voluntary deductions.

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Question 37

2pts

Payroll deductions:

Group of answer choices

Represent expenses to the employer.

Do not include voluntary deductions.

Include federal unemployment taxes:

Are amounts subtracted from each employee's gross earnings.

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Question 38

2pts

The employer should record payroll deductions as:

Group of answer choices

Current liabilities.

Payroll tax expense.

Employee payables.

Wages payable.

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Question 39

2pts

Mabel Miller is paid monthly. She is your only employee. For the month of September, she earned a total of $6,200. FICA tax for social security is 6.2% and the FICA tax for Medicare is 1.45%. The rate for FUTA tax is 0.8% and the rate for SUTA tax is 5.4%. Federal tax withheld from Mabel's earnings was $900. Net pay (salaries payable) for the month of September is:

Group of answer choices

$5,300.00

$4,825.70

$4,776.10

$4,441.30

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Question 40

2pts

Mabel Miller is paid monthly. She is your only employee. For the month of September, she earned a total of $6,200. FICA tax for social security is 6.2% and the FICA tax for Medicare is 1.45%. The rate for FUTA tax is 0.8% and the rate for SUTA tax is 5.4%. Federal tax withheld from Mabel's earnings was $900. What is the total amount of payroll deductions (current liabilities) withheld from Mabel's earnings?

Group of answer choices

$1,374.30

$1,758.70

$474.30

$900.00

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Question 41

2pts

Mabel Miller is paid monthly. She is your only employee and started work on September 1. For the month of September, she earned a total of $6,200. FICA tax for social security is 6.2% and the FICA tax for Medicare is 1.45%. The rate for FUTA tax is 0.8% and the rate for SUTA tax is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. Federal tax withheld from Mabel's earnings was $900. What is the total employer payroll taxes resulting from Mabel's earnings?

Group of answer choices

$858.70

$900.00

$474.30

$384.40

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Question 42

2pts

On January 1, Mason Company signed a promissory note for $10,000 to be paid evenly over the next five years. The first payment was made on December 31 of the current year.Which of the following best describes the presentation of this long-term note payable on the balance sheet as of December 31 of the current year?

Group of answer choices

$6,000 long-term liabilities; $2,000 current liabilities.

$8,000 long-term liabilities; $2,000 current liabilities.

$8,000 long-term liabilities.

$10,000 long-term liabilities.

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Question 43

2pts

Salaries payable is a(an):

Group of answer choices

Prepaid business expense.

Current liability.

Long-term liability.

Asset.

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Question 44

2pts

Callable bonds are:

Group of answer choices

The same as serial bonds.

Convertible into shares of stock.

Also called debentures.

Can be redeemed by the corporation before maturity.

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Question 45

2pts

The interest rate to be paid on the face amount of the bond is called:

Group of answer choices

Effective rate.

Coupon rate.

Market rate.

Sales rate.

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Question 46

2pts

Which of the following is true regarding bonds?

Group of answer choices

Interest on bonds is not tax deductible.

The principal amount of the bond is repaid when the bond matures.

Bonds generally change ownership control.

Bonds never pay interest.

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Question 47

2pts

Manco received $100,000 in exchange for issuing 100 bonds at their face value. What is the correct journal entry to record this transaction?

Group of answer choices

Debit Cash 100,000; credit Bonds payable 100,000

Debit Notes payable 100,000; credit Cash 100,000

Debit Cash 100,000; credit Notes payable 100,000

Debit Bonds payable 100,000; credit Cash 100,000

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Question 48

2pts

The bond contract rate is also known as the:

Group of answer choices

Current rate.

Coupon rate.

Borrowing rate.

Market rate.

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Question 49

2pts

Which of the following is false?

Group of answer choices

Bonds can be issued at a bonus.

Bonds can be issued at face value.

Bonds can be issued at a discount.

Bonds can be issued at a premium.

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Question 50

2pts

A bond will sell at a discount when the:

Group of answer choices

The contract rate is less than the market rate.

The contract rate is greater than the market rate.

The bond pays no interest.

The contract rate is equal to the market rate.