Unpaid expenses

Ex 2.1 Unused vacation days are lost at the end of the year.

• True

• False

2. Ex 2.2 Income tax payable is settled via incremental payments.

• True

• False

Ex 2.3 Accrued expenses payable carry over from year to year

• True

• False

Ex 4 Calculate this year's taxes and record the amount in _________.

Ex 4.2 Debt payments are made ____ the cash account.

4.3 If salespeople reach their target, they will get a(n) _______.

4.4 Unused vacation days must be recorded as a(n) _________.

Ex 7 Complete the conversation.

1 ____________ ___________ ____________

2 ____________ ___________ ____________

3 ____________ ___________ ____________ ________

4 ____________ ___________ ____________ ________

5 ____________ ___________ ____________

6 ____________ ___________ ____________

7 __________ _________

Answer explanation

1. 1. executives  and    salesperson

2. 2. don’t pay them

3. 3. end of the year

4. 4. don’t actually have to

5. 5. last year’s bonuses

6. 6. That makes sense

7. 7. exactly accurate

Ex 6. 1 What is the dialogue mostly about?

• raising executive salaries

• recording an accrued expense

• creating a new expense account

• settling last year's expense accounts

6.2 According to the dialogue, bonuses are

• the same every year

• given to accountants

• paid at the end of the year

• estimated according to sales