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AC201Quiz7 - B Is a contingent liability C Is an estimated...

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AC 201 Principles of Accounting I Name ________________________ Park University Version A Quiz 7A-Chapter 11 Multiple Choice Questions ( 10 points each ) Select the ONE,BEST Answer 1. Obligations not expected to be paid within the longer of one year or the company's operating cycle are reported as: A. Current assets. B. Current liabilities. C. Long-term liabilities. D. Operating cycle liabilities. E. Bills. 2. A contingent liability: A. Is always of a specific amount. B. Is a potential obligation that depends on a future event arising out of a past transaction or event. C. Is an obligation not requiring future payment. D. Is an obligation arising from the purchase of goods or services on credit. E. Is an obligation arising from a future event. 1
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3. A short-term note payable: A. Is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer.
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Unformatted text preview: B. Is a contingent liability. C. Is an estimated liability. D. Is not a liability until the due date. E. Cannot be used to extend the payment period for an account payable. 4. Most employees and employers are required to pay: A. Local payroll taxes. B. State payroll taxes. C. Federal payroll taxes. D. Both b and c only. E. All of the above. Problem ( 60 points ) SHOW ALL WORK !!!!!!! 2 A company's employees had the following earnings records at the close of the current payroll period: The company's payroll taxes expense on each employee's earnings includes: FICA Social Security taxes of 6.2% on the first $84,900 plus 1.45% FICA Medicare on all wages; 0.8% federal unemployment taxes on the first $7,000; and 2.5% state unemployment taxes on the first $7,000. Compute the employer's total payroll taxes expense for the current pay period. 3...
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