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c. Under the cash basis method, warranty costs are charged to
expense as they are paid.
d. FICA taxes withheld from employees' payroll checks should never
be recorded as a liability since the employer will eventually remit the
amounts withheld to the appropriate taxing authority.
47. Which of the following is not a correct statement about sales
taxes?
a. Sales taxes are an expense of the seller.
b. Many companies record sales taxes in the sales account.
c. If sales taxes are included in the sales account, the first step to
find the amount of sales taxes is to divide sales by 1 plus the sales tax
rate.
d. All of these are true.
S48. If a short-term obligation is excluded from current liabilities
because of refinancing, the footnote to the financial statements
describing this event should include all of the following information
except
a. a general description of the financing arrangement.
b. the terms of the new obligation incurred or to be incurred.
c. the terms of any equity security issued or to be issued.
d. the number of financing institutions that refused to refinance the
debt, if any.
S49. In accounting for compensated absences, the difference
between vested rights and accumulated rights is