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Question 6. (TCO D) An employee's net (or take-home) pay is
determined by gross earnings minus amounts for income tax
withholdings and the employee's
portion of FICA taxes and unemployment taxes.
portion of FIT, SIT, and Medicare deductions.
portion of FICA taxes, unemployment taxes, and any voluntary
deductions.
portion of FICA taxes and any voluntary deductions.
Question 7. (TCO D) Which of the following taxes does not represent a
payroll deduction a company may incur?
Federal income taxes
FICA taxes
State unemployment taxes
State income taxes
Question 8. (TCO D) Which of the following is not acceptable treatment
for the presentation of current liabilities?
Listing current liabilities in order of maturity
Listing current liabilities according to amount
Offsetting current liabilities against assets that are to be applied to
their liquidation
Showing current liabilities immediately below current assets to
obtain a presentation of working capital
Question 9. (TCO D) On December 31, 2010, Irey Co. has $2,000,000
of short-term notes payable due on February 14, 2011. On January 10,
2011, Irey arranged a line of credit with County Bank that allows Irey to
borrow up to $1,500,000 at 1% above the prime rate for 3 years. On
February 2, 2011, Irey borrowed $1,200,000 from County Bank and
used $500,000 additional cash to liquidate $1,700,000 of the short-term