Question 1

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.)
a.Employee
b.Employer
c.Both
-Federal income taxes

Accepted Answer

The answer of For each of the types of payroll...

Question 2

Match each of the ratios named with the proper formula for computation.
a.Current Ratio
b.Quick Ratio
c.Cash Ratio
d.Operating Cash Flow Ratio
-(Cash + Marketable Securities)/ Current Liabilities

Accepted Answer

The Cash Ratio is calculated as (Cash + Marketable Securities) / Current Liabilities. This ratio measures a company's ability to pay off its short-term liabilities with its cash and marketable securities, providing a strict measure of liquidity.

Question 3

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.)
a.Employee
b.Employer
c.Both
-Federal unemployment taxes

Accepted Answer

The answer of For each of the types of payroll...

Question 4

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.)
a.Employee
b.Employer
c.Both
-Social security taxes

Accepted Answer

The answer of For each of the types of payroll...

Question 5

Match the following terms with the appropriate definition.
a.Accrued liabilities
f.Payroll taxes
b.Contingent liabilities
g.Sales taxes
c.Current liabilities
h.Warranty
d.Interest rate
i.Withholdings
e.Liabilities
-Probable future sacrifices of economic benefits

Accepted Answer

Liabilities are defined as probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.

Question 6

Match the following terms with the appropriate definition.
a.Accrued liabilities
f.Payroll taxes
b.Contingent liabilities
g.Sales taxes
c.Current liabilities
h.Warranty
d.Interest rate
i.Withholdings
e.Liabilities
-Guarantees the repair or replacement of defective goods during a specified period following the sale

Accepted Answer

A warranty guarantees the repair or replacement of defective goods during a specified period following the sale.

Answer: B
 Contingent liabilities refer to potential liabilities that may arise depending on the outcome of a future event, such as a lawsuit or product recall.

Answer: C
 Current liabilities are debts or obligations that must be paid within one year. This can include things like accounts payable, accrued expenses, and payroll taxes.

Answer: D
 Interest rate refers to the percentage amount charged by a lender for borrowing money.

Answer: E
 Liabilities are debts or obligations that a company owes to others. This can include things like loans, accounts payable, and taxes owing.

Answer: F
 Payroll taxes are taxes that employers must withhold from employees' paychecks and remit to the government, such as Social Security and Medicare taxes.

Answer: G
 Sales taxes are taxes that are charged on the sale of goods or services, and are typically paid by the consumer.

Answer: A
 Accrued liabilities are expenses that have been incurred but not yet paid or recorded, such as salaries owing at the end of the accounting period.

Answer: I
 Withholdings refer to amounts that employers must deduct from employees' paychecks and remit to the government, such as income tax withholdings.

Question 7

Match each of the ratios named with the proper formula for computation.
a.Current Ratio
b.Quick Ratio
c.Cash Ratio
d.Operating Cash Flow Ratio
-Cash Flows from Operating Activities / Current Liabilities

Accepted Answer

The formula for the Operating Cash Flow Ratio is Cash Flows from Operating Activities / Current Liabilities. The Current Ratio, Quick Ratio, and Cash Ratio all use different formulas and do not involve operating cash flows.

Question 8

Match the following terms with the appropriate definition.
a.Accrued liabilities
f.Payroll taxes
b.Contingent liabilities
g.Sales taxes
c.Current liabilities
h.Warranty
d.Interest rate
i.Withholdings
e.Liabilities
-Taxes and other amounts deducted from gross pay

Accepted Answer

Withholdings refer to taxes and other amounts that are deducted from an employee's gross pay, including federal and state income taxes, Social Security taxes, and Medicare taxes, among others.

Question 9

Match the following terms with the appropriate definition.
a.Accrued liabilities
f.Payroll taxes
b.Contingent liabilities
g.Sales taxes
c.Current liabilities
h.Warranty
d.Interest rate
i.Withholdings
e.Liabilities
-Obligations whose amounts, timing, or recipient depend on future events

Accepted Answer

Contingent liabilities are obligations whose amounts, timing, or recipient depend on future events.

Question 10

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.)
a.Employee
b.Employer
c.Both
-Unemployment taxes

Accepted Answer

The answer of For each of the types of payroll...

Question 11

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.)
a.Employee
b.Employer
c.Both
-Gross pay

Accepted Answer

The answer of For each of the types of payroll...

Question 12

Match the following terms with the appropriate definition.
a.Accrued liabilities
f.Payroll taxes
b.Contingent liabilities
g.Sales taxes
c.Current liabilities
h.Warranty
d.Interest rate
i.Withholdings
e.Liabilities
-Obligations that require the firm to pay cash or another current asset within one year

Accepted Answer

Current liabilities are obligations that require the firm to pay cash or another current asset within one year.

Answer: A
 Accrued liabilities are expenses that have been incurred but not yet paid, such as salaries or interest on loans.

Answer: E
 Liabilities refer to the financial obligations of a company, such as debt or accounts payable.

Answer: D
 Interest rate refers to the amount charged by a lender to a borrower for the use of money.

Answer: F
 Payroll taxes are taxes that are paid by employers on behalf of their employees, such as social security or Medicare taxes.

Answer: G
 Sales taxes are taxes that are levied on goods and services that are sold.

Answer: H
 Warranty refers to the guarantee that a product will meet certain standards or is free from defects.

Answer: I
 Withholdings refer to the amounts that are withheld from an employee's paycheck for taxes, such as federal or state income tax.

Question 13

Match the following terms with the appropriate definition.
a.Accrued liabilities
f.Payroll taxes
b.Contingent liabilities
g.Sales taxes
c.Current liabilities
h.Warranty
d.Interest rate
i.Withholdings
e.Liabilities
-Taxes levied by state and local governments

Accepted Answer

The answer of Match the following terms with the appropriate...

Question 14

Match each of the ratios named with the proper formula for computation.
a.Current Ratio
b.Quick Ratio
c.Cash Ratio
d.Operating Cash Flow Ratio
-Current Assets / Current Liabilities

Accepted Answer

The formula for computing the Current Ratio is Current Assets / Current Liabilities, which matches the ratio named "Current Ratio." The other ratios have different formulas: 
- Quick Ratio is (Current Assets - Inventory) / Current Liabilities
- Cash Ratio is Cash and Cash Equivalents / Current Liabilities
- Operating Cash Flow Ratio is Operating Cash Flow / Current Liabilities

Question 15

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.)
a.Employee
b.Employer
c.Both
-Fringe benefits

Accepted Answer

The answer of For each of the types of payroll...

Question 16

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.)
a.Employee
b.Employer
c.Both
-State income taxes

Accepted Answer

The answer of For each of the types of payroll...

Question 17

Match the following terms with the appropriate definition.
a.Accrued liabilities
f.Payroll taxes
b.Contingent liabilities
g.Sales taxes
c.Current liabilities
h.Warranty
d.Interest rate
i.Withholdings
e.Liabilities
-Taxes paid to the government by both employees and employers

Accepted Answer

Payroll taxes are taxes paid by both employees and employers on wages and salaries.

Answer: H 
 Warranty is not related to taxes or liabilities. It refers to a guarantee made by a seller to a buyer that a product will meet certain standards or will be free from defects in materials or workmanship for a certain period of time.

The other terms are:
A) Accrued liabilities - debts that have been incurred but not yet paid 
B) Contingent liabilities - potential liabilities that may or may not arise in the future 
C) Current liabilities - debts that are due within one year 
D) Interest rate - the cost of borrowing money 
E) Liabilities - debts owed by a person or company 
G) Sales taxes - taxes on goods and services purchased. 
I) Withholdings - amounts withheld from employees' paychecks to cover income taxes, social security, and other deductions.

Question 18

Match each of the ratios named with the proper formula for computation.
a.Current Ratio
b.Quick Ratio
c.Cash Ratio
d.Operating Cash Flow Ratio
-(Cash + Marketable Securities + Accounts Receivable)/ Current Liabilities

Accepted Answer

The formula for the Quick Ratio is (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities. This ratio is also known as the Acid-Test Ratio and measures a company's ability to pay off its short-term liabilities without relying on inventory.

Question 19

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.)
a.Employee
b.Employer
c.Both
-State unemployment taxes

Accepted Answer

The answer of For each of the types of payroll...

Question 20

Match the following terms with the appropriate definition.
a.Accrued liabilities
f.Payroll taxes
b.Contingent liabilities
g.Sales taxes
c.Current liabilities
h.Warranty
d.Interest rate
i.Withholdings
e.Liabilities
-Liabilities created by adjusting entries

Accepted Answer

Accrued liabilities are created by adjusting entries to reflect expenses that have been incurred but not yet paid for, such as salaries or interest.

Answer: B
 Contingent liabilities are potential liabilities that may arise in the future, depending on the outcome of uncertain events, such as lawsuits or warranty claims.

Answer: C
 Current liabilities are debts that must be paid off within one year or less, such as accounts payable or short-term loans.

Answer: D
 Interest rate is the amount charged by a lender for the use of borrowed money, usually expressed as a percentage of the amount borrowed.

Answer: E
 Liabilities are debts or obligations owed by a company or individual to others, such as loans, accounts payable, or taxes owed.

Answer: F
 Payroll taxes are taxes paid by employers and employees to fund programs such as Social Security and Medicare.

Answer: G
 Sales taxes are taxes imposed on the sale of goods and services, usually collected by the seller and remitted to the government.

Answer: H
 Warranty refers to a promise by a seller to repair or replace a product within a specified period of time if it is defective or does not perform as expected.

Answer: I
 Withholdings are amounts deducted from an employee's paycheck to cover taxes, insurance premiums, or other obligations.

Quiz 8: Current and Contingent Liabilities

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.) a.Employee b.Employer c.Both -Federal income taxes

Match each of the ratios named with the proper formula for computation. a.Current Ratio b.Quick Ratio c.Cash Ratio d.Operating Cash Flow Ratio -(Cash + Marketable Securities)/ Current Liabilities

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.) a.Employee b.Employer c.Both -Federal unemployment taxes

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.) a.Employee b.Employer c.Both -Social security taxes

Match the following terms with the appropriate definition. a.Accrued liabilities f.Payroll taxes b.Contingent liabilities g.Sales taxes c.Current liabilities h.Warranty d.Interest rate i.Withholdings e.Liabilities -Probable future sacrifices of economic benefits

Match each of the ratios named with the proper formula for computation. a.Current Ratio b.Quick Ratio c.Cash Ratio d.Operating Cash Flow Ratio -Cash Flows from Operating Activities / Current Liabilities

Match the following terms with the appropriate definition. a.Accrued liabilities f.Payroll taxes b.Contingent liabilities g.Sales taxes c.Current liabilities h.Warranty d.Interest rate i.Withholdings e.Liabilities -Taxes and other amounts deducted from gross pay

Match the following terms with the appropriate definition. a.Accrued liabilities f.Payroll taxes b.Contingent liabilities g.Sales taxes c.Current liabilities h.Warranty d.Interest rate i.Withholdings e.Liabilities -Obligations whose amounts, timing, or recipient depend on future events

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.) a.Employee b.Employer c.Both -Unemployment taxes

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.) a.Employee b.Employer c.Both -Gross pay

Match the following terms with the appropriate definition. a.Accrued liabilities f.Payroll taxes b.Contingent liabilities g.Sales taxes c.Current liabilities h.Warranty d.Interest rate i.Withholdings e.Liabilities -Taxes levied by state and local governments

Match each of the ratios named with the proper formula for computation. a.Current Ratio b.Quick Ratio c.Cash Ratio d.Operating Cash Flow Ratio -Current Assets / Current Liabilities

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.) a.Employee b.Employer c.Both -Fringe benefits

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.) a.Employee b.Employer c.Both -State income taxes

Match the following terms with the appropriate definition. a.Accrued liabilities f.Payroll taxes b.Contingent liabilities g.Sales taxes c.Current liabilities h.Warranty d.Interest rate i.Withholdings e.Liabilities -Taxes paid to the government by both employees and employers

Match each of the ratios named with the proper formula for computation. a.Current Ratio b.Quick Ratio c.Cash Ratio d.Operating Cash Flow Ratio -(Cash + Marketable Securities + Accounts Receivable)/ Current Liabilities

For each of the types of payroll taxes and other payroll-related items listed, indicate whether it is paid by the employee through a paycheck withholding, by the employer, or both. (Choices may be used more than once.) a.Employee b.Employer c.Both -State unemployment taxes

Match the following terms with the appropriate definition. a.Accrued liabilities f.Payroll taxes b.Contingent liabilities g.Sales taxes c.Current liabilities h.Warranty d.Interest rate i.Withholdings e.Liabilities -Liabilities created by adjusting entries