The Employer Should Record Payroll Deductions As
Question: Obligations to be paid within one year or the company’s operating cycle, whichever is longer, are:
Answer: current liabilities.
Question: Which of the following do not apply to unearned revenues?
Answer: Amounts to be received in the future from customers for delivery of products or services in the current period
Question: A short-term note payable:
Answer: 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.
Question: The employer should record deductions from employee pay as:
Answer: current liabilities.
Question: The amount of federal income taxes withheld from an employee’s paycheck is determined by:
Answer: current earnings for the pay period and number of withholding allowances the employee claims.
Question: Debt guarantees are:
Answer: considered to be contingent liabilities.
Question: Obligations not expected to be paid within the longer of one year or the company’s operating cycle are reported as:
Answer: long-term liabilities.
Question: When a company is obligated for sales taxes payable, it is reported as a(n):
Answer: current liability.
Question: Promissory notes cannot be transferred from party to party because they are nonnegotiable.
Answer: False
Question: A company sold $12,000 worth of bicycles with an extended warranty. It estimates that 2% of these sales will result in warranty work. The company should:
Answer: recognize warranty expense and liability in the year of the sale.