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24 Cards in this Set
- Front
- Back
A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.
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TRUE
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Obligations not due within one year or the company's operating cycle, whichever is longer, are reported as current liabilities.
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FALSE
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All expected future payments are liabilities.
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FALSE
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A single liability can be divided between current and non-current liabilities
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TRUE
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A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle, whichever is longer.
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TRUE
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Promissory notes are nonnegotiable meaning that they cannot be transferred from party to party.
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FALSE
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A note payable can be used to extend the payment due on an account payable.
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TRUE
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Required payroll deductions result from laws and include income taxes, Social Security taxes, pension and health contributions, union dues, and charitable giving.
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FALSE
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The amount of federal income tax withheld depends on the employee's annual earnings rate and the number of withholding allowances claimed by the employee.
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TRUE
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A high merit rating means that an employer has high employee turnover or seasonal hiring.
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FALSE
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Employers must pay FICA taxes equal in amount to the FICA taxes withheld from their employees.
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TRUE
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The state unemployment tax rates applied to an employer are adjusted according to an employer's merit rating.
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TRUE
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An estimated liability is a known obligation of an uncertain amount that can at least be reasonably estimated
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TRUE
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Accrued vacation benefits are a form of estimated liability for an employer.
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TRUE
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Companies with many employees often use a special payroll bank account to pay employees.
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TRUE
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Each employee records the number of withholding allowances claimed on form W-4, which is the withholding allowance certificate that is filed with the employer.
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TRUE
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A payroll register usually shows the pay period dates, hours worked, gross pay, deductions, and net pay of each employee for every pay period.
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TRUE
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A payroll register is a cumulative record of an employee's hours worked, gross earnings, deductions, and net pay.
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FALSE
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Employers must keep certain payroll records, including individual earnings reports for each employee.
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TRUE
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Federal depository banks are authorized to accept deposits of amounts payable to the federal government
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TRUE
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The Form W-2 must be given to employees before January 31 following the year overed by the Form W-2.
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TRUE
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Payments of FUTA are made quarterly to a federal depository bank if the total amount due exceeds $500.
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TRUE
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When the number of withholding allowances claimed on Form W-4 increases, the amount of income tax withheld increases.
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FALSE
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Employers can use a wage bracket withholding table to compute federal income taxes withheld from each employee's gross pay.
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TRUE
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