- Who is responsible for paying unemployment taxes?

1. Only the employee.

2. Neither the employer nor the employee.

3. Only the employer.

4. Both the employer and the employee

- Which of the following best states the principle that guides whether or not an expenditure should be capitalized (debited to an asset account) when a new asset is acquired?

1. All costs necessary to get the asset ready for its intended use should be capitalized.

2. Purchase prices should be capitalized, but no other costs.

3. The fair value of the asset less an allowance for normal wear and tear should be capitalized.

4. All amounts paid for in cash should be capitalized.

- The formula for the Return on Assets ratio is

1. Average Total Assets divided by Net Income.

2. Net Income divided by Average Total Assets.

3. Net Income divided by Net Sales.

4. Net Sales divided by Average Total Assets.

- Which of the following property, plant, and equipment assets is not depreciated?

1. Land improvements.

2. Land.

3. Buildings.

4. Equipment.

- Which of the following is withheld from the employees paychecks and must also be matched by the employer?

1. FICA taxes.

2. Federal Income taxes.

3. State income taxes.

4. Unemployment taxes.