Accy 201 Burney Ch 9-11 Test
Questions with Solved Solutions.
Past transaction or event - Answer Liability
Present obligation - Answer Liability
Future payment of assets or services - Answer Liability
Due within one year or an operating cycle - Answer current liability
Due in longer than a year - Answer Long term liabilities
- Whom To pay
- When To pay
- How much to pay - Answer Uncertainty in Liabilities
3 categories of Liabilities are... - Answer Known liabilities (definitely determinable),
estimated liabilities, contingent liabilities
- Definitely determinable amounts
- Set by agreements, contracts, and laws - Answer Known Liabilities
Promise to pay the amount on a specific date with interest. Due in one year or less - Answer
Short term N/P
In writing. Stronger than a A/P - Answer Short Term N/P
Interest Formula= - Answer Principal x Rate x Time (360 day year)
Entry for extending credit period. Replacing A/P= - Answer Dr. A/P
Cr N/P
Entry for borrowing cash from the bank= - Answer Dr Cash
Cr. N/P
, Entry for paying Short Term N/P at the maturity date= - Answer Dr N/P
Dr Interest Exp
Cr. Cash
Year adjusting with note outstanding entry= - Answer Dr. Interest Exp
Cr. Interest Payable
Total compensation an employee earns - Answer Gross Pay
monthly or yearly rate of pay - Answer Salary
hourly rate - Answer wages
How do you calculate Net pay - Answer Gross Pay - Total Deductions = Net Pay
Required employee withholdings - Answer FICA -- Social Security
FICA -- Medicare
Fed Income Taxes
State Income Taxes
Employee entry to book the payroll: - Answer Dr. Salary Expense
Cr FICA -- SS pay.
Cr FICA -- medi pay.
Cr Fed Taxes Pay.
Cr State Taxes pay.
Cr Health Ins pay.
Cr Retirement Pay.
Cr Salary Pay.
The employer must pay certain amounts on behalf of an employee. These are - Answer FICA
-- SS
FICA -- Medicare
Fed Unemployment Tax
State unemployment tax
Questions with Solved Solutions.
Past transaction or event - Answer Liability
Present obligation - Answer Liability
Future payment of assets or services - Answer Liability
Due within one year or an operating cycle - Answer current liability
Due in longer than a year - Answer Long term liabilities
- Whom To pay
- When To pay
- How much to pay - Answer Uncertainty in Liabilities
3 categories of Liabilities are... - Answer Known liabilities (definitely determinable),
estimated liabilities, contingent liabilities
- Definitely determinable amounts
- Set by agreements, contracts, and laws - Answer Known Liabilities
Promise to pay the amount on a specific date with interest. Due in one year or less - Answer
Short term N/P
In writing. Stronger than a A/P - Answer Short Term N/P
Interest Formula= - Answer Principal x Rate x Time (360 day year)
Entry for extending credit period. Replacing A/P= - Answer Dr. A/P
Cr N/P
Entry for borrowing cash from the bank= - Answer Dr Cash
Cr. N/P
, Entry for paying Short Term N/P at the maturity date= - Answer Dr N/P
Dr Interest Exp
Cr. Cash
Year adjusting with note outstanding entry= - Answer Dr. Interest Exp
Cr. Interest Payable
Total compensation an employee earns - Answer Gross Pay
monthly or yearly rate of pay - Answer Salary
hourly rate - Answer wages
How do you calculate Net pay - Answer Gross Pay - Total Deductions = Net Pay
Required employee withholdings - Answer FICA -- Social Security
FICA -- Medicare
Fed Income Taxes
State Income Taxes
Employee entry to book the payroll: - Answer Dr. Salary Expense
Cr FICA -- SS pay.
Cr FICA -- medi pay.
Cr Fed Taxes Pay.
Cr State Taxes pay.
Cr Health Ins pay.
Cr Retirement Pay.
Cr Salary Pay.
The employer must pay certain amounts on behalf of an employee. These are - Answer FICA
-- SS
FICA -- Medicare
Fed Unemployment Tax
State unemployment tax
