Solved

Match Each Definition with Its Term

Question 193

Matching

Match each definition with its term

Premises:
A table of amounts of income tax to be withheld from employees' wages
A potential obligation that depends on a future event arising from a past transaction
A seller's obligation to repair or replace a product or service that fails to perform as expected within a specified period
Obligations of a company not requiring payment within one year or the operating cycle, whichever is longer
Known obligations of an uncertain amount that can be reasonably estimated
A number that is used to reduce the amount of federal income tax withheld from an employee's pay
A rating assigned to an employer by a state based on the employer's past record regarding stable employment
Payroll taxes on employers assessed by the federal government to support the federal unemployment insurance program
Gross pay less all deductions
Taxes assessed on both employer and employees under the Federal Insurance Contributions Act. These taxes fund Social Security and Medicare
Responses:
Merit rating
FICA taxes
Estimated liability
Long-term liability
Net pay
Wage bracket withholding table
Contingent liability
Warranty
Withholding allowance
FUTA taxes

Correct Answer:

A table of amounts of income tax to be withheld from employees' wages
A potential obligation that depends on a future event arising from a past transaction
A seller's obligation to repair or replace a product or service that fails to perform as expected within a specified period
Obligations of a company not requiring payment within one year or the operating cycle, whichever is longer
Known obligations of an uncertain amount that can be reasonably estimated
A number that is used to reduce the amount of federal income tax withheld from an employee's pay
A rating assigned to an employer by a state based on the employer's past record regarding stable employment
Payroll taxes on employers assessed by the federal government to support the federal unemployment insurance program
Gross pay less all deductions
Taxes assessed on both employer and employees under the Federal Insurance Contributions Act. These taxes fund Social Security and Medicare
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