D102 Financial Accounting Quiz with accurate ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
solutions and rationales ||\\|//|| ||\\|//||
Terms in this set (61) ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Original
On January 1 of Year 1, a company purchased a machine for $100,000. The machine is
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
expected to have a five-year useful life and salvage value of $5,000. ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Assuming that the company uses double-declining balance depreciation, what is the ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
amount of depreciation expense on this machine for Year 2? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
24,000
18,000
20,000
40,000
24,000
The amount of depreciation expense on this machine for Year 2 is as follows:
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Straight-line rate: 100% ÷ 5 years = 20% ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Double the straight-line rate: 2 × 20% = 40% ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Depreciation expense Year 1 = Beginning book value × Rate = $100,000 × 40% = $40,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Depreciation expense Year 2 = Beginning book value × Rate = $60,000 × 40% = $24,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
In the journal entry to record salary payments to employees, why is the amount of Salary
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Expense not equal to the amount of Salaries Payable? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Because of company income taxes ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Because of sales taxes ||\\|//|| ||\\|//|| ||\\|//||
Because of payroll taxes ||\\|//|| ||\\|//|| ||\\|//||
Because of property taxes ||\\|//|| ||\\|//|| ||\\|//||
Because of payroll taxes ||\\|//|| ||\\|//|| ||\\|//||
,Why do companies sometimes pay managers with a combination of a fixed salary plus an
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
earnings-based bonus rather than just pay a higher fixed salary? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
- The earnings-based bonus plan is a way to reduce the amount of annual interest
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
payments to banks. ||\\|//|| ||\\|//||
- The earnings-based bonus plan is a way for shareholders to receive extra cash dividends
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
from the company. ||\\|//|| ||\\|//||
- The earnings-based bonus plan reduces the amount of property taxes that the company
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
must pay. ||\\|//||
- The earnings-based bonus plan causes the managers to work harder to increase the net
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
income of the company. ||\\|//|| ||\\|//|| ||\\|//||
The earnings-based bonus plan causes the managers to work harder to increase the net
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
income of the company. ||\\|//|| ||\\|//|| ||\\|//||
Here are payroll data for the employees of Endothon Company:
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
State Withholding Taxes Payable $6,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Salaries Payable 100,000 ||\\|//|| ||\\|//||
Federal Withholding Taxes Payable 13,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
FICA Taxes Payable, Employees 6,500 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
What is included in the journal entry necessary to record these employee payroll data?
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salaries Payable for $125,500 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salaries Payable for $100,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salary Expense for $100,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salary Expense for $125,500 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salary Expense for $125,500 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Mateo Williams is an employee of Ridgeland Company. Mateo earns a salary of $100 per
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
day. In addition, for every 10 days that he works, Mateo earns the right to take a paid sick
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
day at some point in the future.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Ignoring any payroll taxes and assuming that Mateo's salary has not yet been paid in cash, ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
what is included in the journal entry necessary to record Mateo's salary for the most recent
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
pay period, which involved 10 working days?
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Sick Days Payable for $100 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
, Debit to Salaries Expense for $1,100 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Credit to Salaries Expense for $1,1000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Credit to Sick Days Payable for $1,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salaries Expense for $1,100 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Salaries Expense 1,100 ||\\|//|| ||\\|//|| ||\\|//||
Sick Days Payable (1 × $100) 100
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Salaries Payable (1 × $100) 1,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Which principle requires that the expense associated with a compensated absence be
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
accounted for in the period in which it is earned by the employee? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Revenue recognition ||\\|//||
Matching
Allowance
Discount
Matching
Which statement is true regarding sales taxes? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Sales taxes increase the reported sales revenue of a company.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Cash collected from sales taxes is used by the company to pay for employee benefits.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Cash collected from sales taxes must be forwarded to the correct government agency.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Sales taxes increase the reported operating expenses of a company.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Cash collected from sales taxes must be forwarded to the correct government agency.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Endothon Company paid its property taxes on July 1 of Year 1. Those property taxes relate ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
to the period from July 1 of Year 1 through June 30 of Year 2.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
As of December 31, Year 1, what item will appear in Endothon's financial statements with
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
respect to these property taxes? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Prepaid Property Tax Liability ||\\|//|| ||\\|//|| ||\\|//||
Unpaid Property Tax Revenue ||\\|//|| ||\\|//|| ||\\|//||
Prepaid Property Tax Asset ||\\|//|| ||\\|//|| ||\\|//||
Unpaid Property Tax Liability ||\\|//|| ||\\|//|| ||\\|//||
Prepaid Property Tax Asset ||\\|//|| ||\\|//|| ||\\|//||
solutions and rationales ||\\|//|| ||\\|//||
Terms in this set (61) ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Original
On January 1 of Year 1, a company purchased a machine for $100,000. The machine is
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
expected to have a five-year useful life and salvage value of $5,000. ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Assuming that the company uses double-declining balance depreciation, what is the ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
amount of depreciation expense on this machine for Year 2? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
24,000
18,000
20,000
40,000
24,000
The amount of depreciation expense on this machine for Year 2 is as follows:
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Straight-line rate: 100% ÷ 5 years = 20% ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Double the straight-line rate: 2 × 20% = 40% ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Depreciation expense Year 1 = Beginning book value × Rate = $100,000 × 40% = $40,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Depreciation expense Year 2 = Beginning book value × Rate = $60,000 × 40% = $24,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
In the journal entry to record salary payments to employees, why is the amount of Salary
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Expense not equal to the amount of Salaries Payable? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Because of company income taxes ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Because of sales taxes ||\\|//|| ||\\|//|| ||\\|//||
Because of payroll taxes ||\\|//|| ||\\|//|| ||\\|//||
Because of property taxes ||\\|//|| ||\\|//|| ||\\|//||
Because of payroll taxes ||\\|//|| ||\\|//|| ||\\|//||
,Why do companies sometimes pay managers with a combination of a fixed salary plus an
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
earnings-based bonus rather than just pay a higher fixed salary? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
- The earnings-based bonus plan is a way to reduce the amount of annual interest
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
payments to banks. ||\\|//|| ||\\|//||
- The earnings-based bonus plan is a way for shareholders to receive extra cash dividends
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
from the company. ||\\|//|| ||\\|//||
- The earnings-based bonus plan reduces the amount of property taxes that the company
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
must pay. ||\\|//||
- The earnings-based bonus plan causes the managers to work harder to increase the net
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
income of the company. ||\\|//|| ||\\|//|| ||\\|//||
The earnings-based bonus plan causes the managers to work harder to increase the net
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
income of the company. ||\\|//|| ||\\|//|| ||\\|//||
Here are payroll data for the employees of Endothon Company:
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
State Withholding Taxes Payable $6,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Salaries Payable 100,000 ||\\|//|| ||\\|//||
Federal Withholding Taxes Payable 13,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
FICA Taxes Payable, Employees 6,500 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
What is included in the journal entry necessary to record these employee payroll data?
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salaries Payable for $125,500 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salaries Payable for $100,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salary Expense for $100,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salary Expense for $125,500 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salary Expense for $125,500 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Mateo Williams is an employee of Ridgeland Company. Mateo earns a salary of $100 per
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
day. In addition, for every 10 days that he works, Mateo earns the right to take a paid sick
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
day at some point in the future.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Ignoring any payroll taxes and assuming that Mateo's salary has not yet been paid in cash, ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
what is included in the journal entry necessary to record Mateo's salary for the most recent
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
pay period, which involved 10 working days?
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Sick Days Payable for $100 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
, Debit to Salaries Expense for $1,100 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Credit to Salaries Expense for $1,1000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Credit to Sick Days Payable for $1,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Debit to Salaries Expense for $1,100 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Salaries Expense 1,100 ||\\|//|| ||\\|//|| ||\\|//||
Sick Days Payable (1 × $100) 100
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Salaries Payable (1 × $100) 1,000 ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Which principle requires that the expense associated with a compensated absence be
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
accounted for in the period in which it is earned by the employee? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Revenue recognition ||\\|//||
Matching
Allowance
Discount
Matching
Which statement is true regarding sales taxes? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Sales taxes increase the reported sales revenue of a company.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Cash collected from sales taxes is used by the company to pay for employee benefits.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Cash collected from sales taxes must be forwarded to the correct government agency.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Sales taxes increase the reported operating expenses of a company.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Cash collected from sales taxes must be forwarded to the correct government agency.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Endothon Company paid its property taxes on July 1 of Year 1. Those property taxes relate ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
to the period from July 1 of Year 1 through June 30 of Year 2.
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
As of December 31, Year 1, what item will appear in Endothon's financial statements with
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
respect to these property taxes? ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||
Prepaid Property Tax Liability ||\\|//|| ||\\|//|| ||\\|//||
Unpaid Property Tax Revenue ||\\|//|| ||\\|//|| ||\\|//||
Prepaid Property Tax Asset ||\\|//|| ||\\|//|| ||\\|//||
Unpaid Property Tax Liability ||\\|//|| ||\\|//|| ||\\|//||
Prepaid Property Tax Asset ||\\|//|| ||\\|//|| ||\\|//||
