Liabilities and Payroll

Liabilities due beyond one year are classified as _____.

• contingent liabilities.

• current liabilities.

• long-term liabilities.

• fixed liabilities.

Gross earnings for a payroll period less payroll deductions are referred to as:

• overtime pay.

• bonus pay.

• gross pay.

• net pay.

Taxes paid by EMPLOYEES include:

• Social Security Tax

• Medicare Tax

• Unemployment Tax

• Federal Income Tax

Contingent liabilities that are probable but cannot be reasonably estimated are disclosed in the:

• current liabilities section of the balance sheet.

• notes to the financial statements.

• long term-liabilities section of the balance sheet.

• retained earnings section of the statement of stockholders' equity.

Current liabilities are:

• due and receivable within one year.

• due and payable within one year.

• due but not payable for more than one year.

• due but not receivable for more than one year.

The earnings (salary, wages, and commissions) earned by all employees of a business are known as:

• Gross Pay

• Net Pay

• Payroll

• Pay Period

_____ liabilities may arise from past transactions if certain events occur in the future.

• Long-term

• Contingent

• Noncurrent

• Current

The FICA tax withheld from employees contributes to:

• Medicare only.

• Federal and State unemployment compensation.

• Social Security and Medicare.

• Social Security and unemployment.

Which of the following factors affects the accounting for contingent liabilities?

• Investor's expectations

• The coupon rate and market rate of interest

• Financial and economic conditions

• The likelihood of occurring and measurement

Earnings before deductions are referred to as:

• overtime pay.

• bonus pay.

• gross pay.

• net pay.