Question 7 The following totals for the month of June were taken from the payrol

Question

Question 7

The following totals for the month of June were taken from the payroll register of Young Company:

?

$15,000

1,125

3,000

500

4,000

?

The entry to record the accrual of the employer’s payroll taxes would include a debit to

Question 7 options:

Payroll Tax Expense for $2,498

Social Security and Medicare Tax Payable for $2,250

Payroll Tax Expense for $1,373

?Payroll Tax Expense for $3,000

Question 8

A pension plan that requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed

Question 8 options:

funded

unfunded

defined benefit

defined contribution

Question 9

The journal entry a company uses to record partially funded pension rights for its salaried employees at the end of the year is

Question 9 options:

debit Salary Expense; credit Cash

debit Pension Expense; credit Unfunded Pension Liability

debit Pension Expense; credit Unfunded Pension Liability and Cash

debit Pension Expense; credit Cash

Question 10

Estimating and recording product warranty expense in the period of the sale best follows the

Question 10 options:

cost concept

business entity concept

matching concept

materiality concept

Question 11

Wright Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,000 units.  It is estimated that warranty repairs will average $15 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year.  In the current year's income statement, Wright should show warranty expense of

Question 11 options:

$9,000.

$21,000.

$30,000.

$0.

Question 12

Quick assets include

Question 12 options:

cash, cash equivalents, receivables, prepaid expenses, and inventory

cash, cash equivalents, receivables, and prepaid expenses

cash, cash equivalents, receivables, and inventory

cash, cash equivalents, and receivables

Question 13

The Crafter Company has the following assets and liabilities:

?

ASSETS

$28,000

15,000

20,000

50,000

LIABILITIES

10,000

2,000

25,000

?

Determine the quick ratio (rounded to one decimal point).

Question 13 options:

5.3

3.6

3.3

2.3

Salaries expense

$15,000

Social security and Medicare taxes withheld

1,125

Income taxes withheld

3,000

Retirement savings

500

Salaries subject to federal and state unemployment taxes of 6.2 percent

4,000

Explanation / Answer

7)

The entry to record the accrual of the employer’s payroll taxes would include a debit to

Answer = C) Payroll Tax Expense for $1,373

8.

A pension plan that requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed

Answer = D) Defined contribution

9. The journal entry a company uses to record partially funded pension rights for its salaried employees at the end of the year is

Answer = C)debit Pension Expense; credit Unfunded Pension Liability and Cash

10.

Estimating and recording product warranty expense in the period of the sale best follows the

ANSWER = c) Matching concept

11.

Answer = C) $30,000

12

Quick ratio include :

Answer = d) cash, cash equivalents, and receivables

Quick ratio does not include prepaid expenses, and inventory

13. Quick ratio = (Current assets- Prepaid exp - Inventory ) / Current liablities

= (28000 + 15000) / (10000 + 2000)

= 3.6

ANSWER =b) 3.6

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