Question 7

The following totals for the month of June were taken from the payroll register of Young Company:

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Salaries expense	$15,000
Social security and Medicare taxes withheld	1,125
Income taxes withheld	3,000
Retirement savings	500
Salaries subject to federal and state
unemployment taxes of 6.2 percent		4,000

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The entry to record the accrual of the employers payroll taxes would include a debit to

Question 7 options:

	Payroll Tax Expense for $2,498
	Social Security and Medicare Tax Payable for $2,250
	Payroll Tax Expense for $1,373
	?Payroll Tax Expense for $3,000

Question 8

A pension plan that requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed

Question 8 options:

	funded
	unfunded
	defined benefit
	defined contribution

Question 9

The journal entry a company uses to record partially funded pension rights for its salaried employees at the end of the year is

Question 9 options:

	debit Salary Expense; credit Cash
	debit Pension Expense; credit Unfunded Pension Liability
	debit Pension Expense; credit Unfunded Pension Liability and Cash
	debit Pension Expense; credit Cash

Question 10

Estimating and recording product warranty expense in the period of the sale best follows the

Question 10 options:

	cost concept
	business entity concept
	matching concept
	materiality concept

Question 11

Wright Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,000 units. It is estimated that warranty repairs will average $15 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Wright should show warranty expense of

Question 11 options:

	$9,000.
	$21,000.
	$30,000.
	$0.

Question 12

Quick assets include

Question 12 options:

	cash, cash equivalents, receivables, prepaid expenses, and inventory
	cash, cash equivalents, receivables, and prepaid expenses
	cash, cash equivalents, receivables, and inventory
	cash, cash equivalents, and receivables

Question 13

The Crafter Company has the following assets and liabilities:

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ASSETS
Cash	$28,000
Accounts receivable	15,000
Inventory	20,000
Equipment	50,000
LIABILITIES
Current portion of long-term debt	10,000
Accounts payable	2,000
Long-term debt	25,000

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Determine the quick ratio (rounded to one decimal point).

Question 13 options:

	5.3
	3.6
	3.3
	2.3