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question 1 an obligation that probably exist and that has incorrect about the amount 4287447


1. an obligation that probably exist and that has incorrect about the amount that is to be paid is

A) Contingent liability

B) discounted note payable

C) current liability

D) unearned revenues

E) estimated liability

2. Employers never make deductions from employees wages for:

A. FICA taxes

B. Federal income taxes

C. Union dues

D. Federal unemployment taxes

E. Hospitalization insurance

3. A business issued a $5,000, 60 day, 12% note to the bank. The amount due at maturity is:

A. $4,900

B. $5,000

C. $5,100

D. $5,600

4. Within limitations on the maximum earnings subject to the tax, employers do not incur an expense for which of the following payroll taxes:

A. Social security tax

B. Federal unemployment compensation tax

C. State unemployment compensation tax

D. Employees federal income tax

5. What is the due date of a $12,000, 90 day, 8% note receivable dated August 5:

A. October 31

B. November 2

C. November 3

D. November 4

6. A petty cash fund of 100 is replenished when the fund contains 5 in cash and receipts for $53

A) credit cash over and short for 2

B) credit miscellaneous revenue for 2

C) debit cash over and short for 2

D) debit miscellaneous expense for 2

7. if the beginning merchandise inventory is understated by $10000 the effect of the error current period is

cost good sold                                                net income

a)                    understated                                                   understated

b)                    overstated                                                      overstated

c)                     understated                                                   overstated

d)                    overstated                                                      understated

8. the cost of plant assets include

A) Purchase price

B) freight costs paid by the purchase

C) installation costs

D) All the above

9. A company issued check #123 for $795 to J. Johnson on account. The check which cleared the bank was incorrectly journalized and posted by Williams Co for $759. During the bank reconcilement, the error connection would be:

A. deducted from the book balance

B. added to the book balance

C. added to the bank balance

D. deducted from the bank balance

10. Equipment purchased on January 3, 2008, for $80,000 was depreciated using the straight-line method based upon a 5 year life and $7,500 residual value. The equipment was sold on December 31, 2010, for

$40,000. What is the gain on the sale of the equipment?

A: $3,500

B: $14,500

C: $36,500

D: $43,500

. The bank erroneously charged Tropical Services' account for $450.50 for a check that was correctly written and recorded by Tropical Services as $540.50. To reconcile the bank account of Tropical Services at the end of the month, you would:

A. add $90 to the cash balance according to the bank statement.

B. add $90 to the cash balance according toTropical Services' records.

C. deduct $90 from the cash balance according to the bank statement.

D. deduct $90 from the cash balance according to Tropical Services'records.

15. treasury stock is

      a) treasury stock is stock issued by the u.s. treasury department


16. Common Stock Dividend Distributable account is classified as a(n)

                  a) asset account

                  b) shareholders' equity account

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