Unformatted text preview: 9. C. A contingent liability should be recorded in the accounts when it is probable the contingency will happen, and the amount can be reasonably estimated. 10. B. Estimated Warranty Liability is in the adjusting entry for a warranty contract. 11. D. 560+105= 665 12. C. When recording payroll deductions are recorded as liabilities. 13. C. Employer payroll taxes do not include federal income taxes. 14. B. $7,500 because it should be equal on both entries. 15. D. The department that should pay the payroll is the treasurer's department. 16. D. Salaries are not an additional fringe benefit....
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- Spring '11
- Balance Sheet, Current Liabilities, Generally Accepted Accounting Principles, Brittney Acevedo Professor Abatemarco