QUIZ H-revised - QUIZ H CLASS: Student Number: 1....

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CLASS: Student Number: Student Name: 1. Contingent liabilities can be: A. Probable. B. Remote. C. Reasonably possible. D. Estimable. E. All of these. 2. Liabilities: A. Must be certain. B. Must sometimes be estimated. C. Must be for a specific amount. D. Must always have a definite date for payment. E. Must involve an outflow of cash. 3. Employers: A. Pay FICA taxes equal to the amount of FICA taxes withheld from the employees. B. Withhold employees' FICA taxes. C. Pay unemployment taxes to the federal government. D. Pay unemployment taxes to both the state and federal governments. E. All of these. 4. The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned $8,900. What is the amount of total unemployment taxes the employer must pay on this employee's wages? A. $322.00. B. $434.00. C. $480.60. D. $551.80. E. Zero, since the employee's wages exceed the maximum of $7,000. 5. The total amount of cash and other assets received by a corporation from its stockholders in exchange for common stock is: A. Always equal to its par value. B. Always equal to its stated value. C. Referred to as paid-in capital. D. Referred to as retained earnings. E. Always below its stated value. 6. A company made an error in recording the 2009 purchase of machinery. This was discovered in 2011. The item should be reported as a prior period adjustment: A. on the 2009 statement of retained earnings.
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This note was uploaded on 11/07/2010 for the course BBA 1023 taught by Professor Luoyi during the Spring '10 term at University of Macau.

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QUIZ H-revised - QUIZ H CLASS: Student Number: 1....

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