Which of the following would most likely be classified as a current liability?

a)	Mortgage payable
b)	Bonds payable
c)	2 year note payable
d)	Unearned rent

Which of the following below is an example of a capital expenditure?

a)	tune-up for a company truck
b)	replacing all burned-out light bulbs in the factory
c)	replacing an engine in a company car
d)	cleaning the carpet in the front room

The amount of federal income taxes withheld from an employee's gross pay is recorded as a(n)

a)	contra account
b)	asset
c)	liability
d)	payroll expense

The total earnings of an employee for a payroll period is referred to as:

a)	Value added tax
b)	gross pay
c)	pay net of taxes
d)	net pay

The partner capital accounts may change due to capital additions, net income, or withdrawals.

	a) True
	b) False

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Current liabilities are

a)	due, but not receivable for more than one year
b)	due, but not payable for more than one year
c)	due and receivable within one year
d)	due and payable within one year

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Many large companies, like Best Buy, Target and Walmart are corporations because they need to raise large amounts of capital.

	a) True
	b) False

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Which of the following taxes would be deducted in determining an employee's net pay?

a)	FUTA tax
b)	SUTA tax
c)	FICA tax
d)	All of the above

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An advantage of the partnership form of business organization is:

a)	unlimited liability
b)	mutual agency
c)	limited life
d)	ease of formation

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The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total.

Question 22 options:

	a) True
	b) False

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One of the main disadvantages of the corporate form is:

a)	professional management
b)	charter
c)	corporation must issue stock
d)	double taxation of dividends

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Characteristics of a corporation include:

a)	shareholders are mutual agents
b)	direct management by the shareholders (owners)
c)	its inability to own property
d)	shareholders who have limited liability

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A partnership is similar to a sole proprietorship, except that it has two or more owners/partners.

	a) True
	b) False