会计学原理23版 英文版题库TBChap011.docx

会计学原理23版 英文版题库TBChap011.docx

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会计学原理23版英文版题库TBChap011

Chapter11CurrentLiabilitiesandPayrollAccounting

MULTIPLECHOICEQUESTIONS

1）Aliabilityisaprobablefuturepaymentofassetsorservicesthatacompanyispresentlyobligatedtomakeasaresultofpasttransactionsorevents.

A）True

B）False

2）Obligationsnotduewithinoneyearorthecompany'soperatingcycle,whicheverislonger,arereportedascurrentliabilities.

A）True

B）False

3）Allexpectedfuturepaymentsareliabilities.

A）True

B）False

4）Asingleliabilitycannotbedividedbetweencurrentandnoncurrentliabilities.

A）True

B）False

5）Acompanycannothavealiabilityiftheamountoftheobligationisunknown.

A）True

B）False

6）Aliabilitymayexistevenifthereisuncertaintyaboutwhomtopay,whentopay,orhowmuchtopay.

A）True

B）False

7）Tradeaccountspayableareamountsowedtosuppliersforproductsorservicespurchasedoncredit.

A）True

B）False

8）Unearnedrevenuesarecurrentliabilities.

A）True

B）False

9）SalesTaxesPayableisdebitedandCashiscreditedwhencompaniessendsalestaxescollectedfromcustomerstothegovernment.

A）True

B）False

10）Vacationbenefitsisanexampleofaknownliability.

A）True

B）False

11）Acontingentliabilityisapotentialobligationthatdependsonafutureeventarisingfromapasttransactionorevent.

A）True

B）False

12）Payrollisanexampleofacontingentliabilityfortheemployer.

A）True

B）False

13）Thefulldisclosureprinciplerequiresthereportingofcontingentliabilitiesthatarereasonablypossible.

A）True

B）False

14）Uncertaintiesfromthedevelopmentofnewcompetingproductsarenotcontingentliabilities.

A）True

B）False

15）Debtguaranteesareusuallydisclosedasacontingentliability.

A）True

B）False

16）Accountingforcontingentliabilitiescoversthreepossibilities:

（1）Thefutureeventisprobableandtheamountcannotbereasonablyestimated;

（2）Thefutureeventisremoteorunlikelytorecur;（3）Thelikelihoodoftheliabilitytooccurisimpossible.

A）True

B）False

17）Apotentiallawsuitclaimisdisclosedwhentheclaimcanbereasonablyestimatedanditisreasonablypossible.

A）True

B）False

18）Ahighvalueforthetimesinterestearnedratiomeansthatacompanyisalowerriskborrower.

A）True

B）False

19）Thetimesinterestearnedratioiscalculatedbydividinginterestexpensebyincomebeforeinterestexpenseandincometaxes.

A）True

B）False

20）Experienceshowsthatthedefaultrateonliabilitiesincreasessharplywhentimesinterestearnedfallsbelow1.5to2.0andremainsatthatlevelorlowerforseveraltimeperiods.

A）True

B）False

21）Acompany'sincomebeforeinterestexpenseandtaxesis$250,000anditsinterestexpenseis

$100,000.Itstimesinterestearnedratiois2.5.

A）True

B）False

22）Ashort-termnotepayableisawrittenpromisetopayaspecifiedamountonadefinitefuturedatewithinoneyearortheoperatingcycle,whicheverisshorter.

A）True

B）False

23）Promissorynotescannotbetransferredfrompartytopartybecausetheyarenonnegotiable.

A）True

B）False

24）Anotepayablecanbeusedtoextendthepaymentdueonanaccountpayable.

A）True

B）False

25）Eveniftheendofanaccountingperiodoccursbetweenthesigningofanotepayableanditsmaturitydate,thematchingprinciplerequiresthatinterestexpensenotbeaccruedonanotepayableuntilthenoteispaid.

A）True

B）False

26）Requiredpayrolldeductionsincludeincometaxes,SocialSecuritytaxes,pensionandhealthcontributions,uniondues,andcharitablegiving.

A）True

B）False

27）Theamountoffederalincometaxwithheldfromemployeepaydependsontheemployee'sannualearningsrateandthenumberofwithholdingallowancesclaimedbytheemployee.

A）True

B）False

28）TheamountofFICAtaxthatemployersmustpayistwicetheamountoftheFICAtaxeswithheldfromtheiremployees.

A）True

B）False

29）Thestateunemploymenttaxratesappliedtoanemployerareadjustedaccordingtoanemployer'smeritrating.

A）True

B）False

30）Ahighmeritratingforstateunemploymenttaxesmeansthatanemployerhashighemployeeturnoverorseasonalhiring.

A）True

B）False

31）Employersmustkeepindividualearningsreportsforeachemployee.

A）True

B）False

32）Depositsofamountspayabletothefederalgovernmentmaybepaidthroughfederaldepositorybanks.

A）True

B）False

33）FUTArequiresemployerstopayafederalunemploymenttaxonallsalaryorwagespaidtoeachemployee.

A）True

B）False

34）TheFormW-2mustbegiventoemployeesbeforeJanuary31followingtheyearcoveredbytheFormW-2.

A）True

B）False

35）PaymentsofFUTAaremadequarterlytoafederaldepositorybankifthetotalamountdueexceeds

$500.

A）True

B）False

36）Aknownobligationofanuncertainamountthatcanatleastbereasonablyestimatedisreportedasanestimatedliability.

A）True

B）False

37）Accruedvacationbenefitsareaformofestimatedliabilityforanemployer.

A）True

B）False

38）Aliabilityisincurredwhenincomeisearnedbecauseincometaxexpenseiscreatedbyearningincome.

A）True

B）False

39）Acorporationhasa$40,000creditbalanceintheIncomeTaxPayableaccount.Periodendinformationshowsthattheactualliabilityis$47,000.ThecompanyshouldrecordanentrytodebitIncomeTaxExpensefor$7,000andcreditIncomeTaxesPayablefor$7,000.

A）True

B）False

40）Employerscanuseawagebracketwithholdingtabletocomputefederalincometaxeswithheldfromeachemployee'sgrosspay.

A）True

B）False

41）Eachemployeerecordsthenumberofwithholdingallowancesclaimedonthewithholdingallowancecertificatethatisfiledwiththeemployer,whichistheFormW-4.

A）True

B）False

42）Companieswithmanyemployeesrarelyuseaspecialpayrollbankaccountfromwhichtopayemployees.

A）True

B）False

43）Thereportthatshowsthepayperioddates,hoursworked,grosspay,deductions,andnetpayofeachemployeeforeverypayperiodisthepayrollregister.

A）True

B）False

44）Anemployeeearningsreportisacumulativerecordofeachemployee'shoursworked,grossearnings,deductions,andnetpay.

A）True

B）False

45）WhenthenumberofwithholdingallowancesclaimedonFormW-4increases,theamountofincometaxwithhelddecreases.

A）True

B）False

46）Allofthefollowingstatementsregardingliabilitiesaretrueexcept:

A）Unearnedfuturewagestobepaidtoemployeesshouldberecordedasliabilities.

B）Foraliabilitytobereported,itmustbeapresentobligationthatresultsfromapasttransactionorevent,andrequiresafuturepaymentofassetsorservices.

C）Informationaboutliabilitiesismoreusefulwhenthebalancesheetidentifiesthemaseithercurrentorlongterm.

D）Liabilitiescaninvolveuncertaintyinwhomtopay.

E）Aliabilityisaprobablefuturepaymentofassetsorservices.

47）Obligationstobepaidwithinoneyearorthecompany'soperatingcycle,whicheverislonger,are:

A）Currentassets.

B）Bills.

C）Earnedrevenues.

D）Operatingcycleliabilities.

E）Currentliabilities.

48）Obligationsnotexpectedtobepaidwithinthelongerofoneyearorthecompany'soperatingcyclearereportedas:

A）Currentliabilities.

B）Long-termliabilities.

C）Bills.

D）Operatingcycleliabilities.

E）Currentassets.

49）Allofthefollowingstatementsregardinguncertaintyinliabilitiesaretrueexcept:

A）Liabilitiescaninvolveuncertaintyinwhomtopay.

B）Acompanycanbeawareofanobligationbutnotknowhowmuchwillberequiredtosettleit.

C）Acompanycanhaveanobligationofaknownamounttoaknowncreditorbutnotknowwhenitmustbepaid.

D）Acompanycancreatealiabilitywithaknownamountevenwhentheholderofthenotemaynotbeknownuntilthematuritydate.

E）Acompanyonlyrecordsliabilitieswhenitknowswhomtopay,whentopay,andhowmuchtopay.

50）Inordertobereported,liabilitiesmust:

A）Involveanoutflowofcash.

B）Alwayshaveadefinitedateforpayment.

C）Beforaspecificamount.

D）Sometimesbeestimated.

E）Becertain.

51）Allofthefollowingaretrueofknownliabilitiesexcept:

A）Includeaccountspayable,notespayable,andpayroll.

B）Areobligationssetbyagreements,contracts,orlaws.

C）Maydependonsomefutureeventoccurring.

D）Aredefinitelydeterminable.

E）Aremeasurable.

52）Accountspayableare:

A）Amountsowedtosuppliersforproductsand/orservicespurchasedoncredit.

B）Alwayspayablewithin30days.

C）Long-termliabilities.

D）Estimatedliabilities.

E）Notusuallydueonspecificdates.

53）Amountsreceivedinadvancefromcustomersforfutureproductsorservices:

A）Areliabilities.

B）Arerevenues.

C）Requireanoutlayofcashinthefuture.

D）ArenotallowedunderGAAP.

E）Increaseincome.

54）Whenacompanyisobligatedforsalestaxespayable,itisreportedasa（n）:

A）Businessexpense.

B）Estimatedliability.

C）Currentliability.

D）Long-termliability.

E）Contingentliability.

55）Whichofthefollowingdonotapplytounearnedrevenues?

A）Alsocalledcollectionsinadvance.

B）Amountsreceivedinadvancefromcustomersforfuturedeliveryofproductsorservices.

C）Alsocalledprepayments.

D）Alsocalleddeferredrevenues.

E）Amountstobereceivedinthefuturefromcustomersfordeliveryofproductsorservicesinthecurrentperiod.

56）Ifacompanyhasadvanceticketsalestotaling$2,000,000fortheupcomingfootballseason,thereceiptofcashwouldbejournalizedas:

A）DebitCash,creditUnearnedRevenue.

B）DebitSales,creditUnearnedRevenue.

C）DebitUnearnedRevenue,creditSales.

D）DebitCash,creditTicketsalespayable.

E）DebitUnearnedRevenue,creditCash.

57）Acontingentliabilityis:

A）Anobligationnotrequiringfuturepayment.

B）