accounting-he total amount of employee compensation before deductions
by ella | Aug 20, 2025 | Business
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he total amount of employee compensation before deductions are taken out is referred to as_______. (Points : 1) |
gross pay
net pay
compensation after withholdings
take-home pay |
| Question 2.2.Unearned subscription revenue appears on the balance sheet as a_______. (Points : 1) |
long-term asset
long-term investment
current asset or long-term investment
current liability or long-term liability |
| Question 3.3.What are the two categories of payroll deductions? (Points : 1) |
required deductions, optional deductions
straight deductions, overtime deductions
gross deductions, net deductions
charitable deductions, contributory deductions |
| Question 4.4.Which of the following is an amount for products or services purchased on account? (Points : 1) |
Accounts payable
Unearned revenue
Accrued expense
Estimated warranty payable |
| Question 5.5.Griffin Insurance Company sold a policy that begins on October 1, 20X2 and goes through September 30, 20X3. Cash of $1500 was received on September 29, 20X2 and was recorded as unearned revenue. The entry required at year-end to correctly state unearned revenue account would be ________. Assume no monthly adjusting entries were recorded. (Points : 1) |
| Unearned Revenue |
1500.00 |
|
| Revenue |
|
1500.00 |
| Cash |
1500.00 |
|
|
Revenue |
|
375.00
|
| Unearned Revenue |
1125.00 |
|
| Revenue |
375.00 |
| Unearned Revenue |
375.00 |
| Unearned Revenue |
375.00 |
|
| Revenue |
|
375.00 |
|
Question 6.6.Table 7
| Richard and Gere are the only two employees of Bush Company. In January, 20X6, Richard’s gross pay was $5,500 and Gere’s gross pay was $5,200. Each employee pays federal income tax equal to 25% of gross pay. In addition, Gere pays $200 for insurance premiums and Richard pays $225. Each has $25 withheld for life insurance premiums. Assume a FICA tax rate of 8% on all earnings, a federal unemployment tax rate of .8%, and a state unemployment tax rate of 5.4%. The unemployment taxes are based on the first $7,000 of employee annual earnings. |
Referring to Table 7, the entry to record the payroll for January would include a_______. (Points : 1) |
debit to salary payable to employees for $6,694
credit to federal unemployment tax payable for $86
credit to FICA tax payable for $856
credit to state unemployment tax payable for $578 |
| Question 7.7.Henry Company rented an office warehouse to a customer. The lease begins on November 1, 20X2 and goes through October 31, 20X3. Cash of $15,000 was received on October 30, 20X2. The balance of unearned rent revenue on December 31, 20X2 should be ________. (Points : 1) |
$15,000
$12,500
$2,500
$11,250 |
| Question 8.8.Which of the following is true of a contingent liability? (Points : 1) |
It is a potential liability that depends on a future event.
It is an actual liability that is difficult to estimate.
It is an actual liability that depends on a past event.
It is a court-imposed liability based on an officer’s fraud as decided in a completed lawsuit. |
| Question 9.9.Face value of a note payable plus interest is called _________. (Points : 1) |
maturity value
face value
proceeds
principal |
Question 10.10.The table below provides payroll information for Tim Watson for the month of June:
| Salary |
$6,200 |
| Insurance |
$350 |
| Bonus |
$500 |
| Charitable contributions |
$50 |
| Federal Tax Withholding Rate |
25% |
| State Tax Withholding Rate |
6% |
| FICA Tax Withholding Rate |
5.65% |
What is the total for Tim Watson’s required deductions? (Points : 1) |
$2,622.30
$2,805.55
$2,272.30
$2,455.55 |
| Question 11.11.Which of the following is NOT a component of a payroll system? (Points : 1) |
Payroll sinking fund
Employee earnings record
Payroll bank account
Payroll record |
| Question 12.12.A $20,000, 90-day, 8% note payable was issued on November 1, 2015. Which of the following would be included in the journal entry required on the note’s maturity date? (Points : 1) |
A credit to Note payable for $20,400
A credit to Cash for $10,000
A debit to Interest expense for $133
A debit to Interest payable for $133 |
| Question 13.13.Which of the following is referred to as net pay? (Points : 1) |
Take-home pay plus all deductions
Gross pay minus federal and state income taxes
All deductions plus all withholdings
Gross pay minus all deductions |
| Question 14.14.John worked 40 hours last week at $18.50 per hour plus 7 hours overtime at time and a half. John pays 15% Federal income tax and 7% State income tax. If FICA is 7.5%, what is John’s net income? (Points : 1) |
$486.97
$526.80
$740.65
$658.64 |
|
Question 15.15.Many of the accounting standards in GAAP for current asset accounts are ________ with the international standards. (Points : 1)
|
converged
merged
accrued
converted |
