CH11 - Current Liabilities and Payroll

Question 1

Liabilities that may arise from past transactions if certain events occur in the future

Answer 1

Contingent Liabilities

Question 2

A company’s ability to pay its current liabilities

Answer 2

Current Position Analysis

Question 3

A pension plan that promises employees a fixed annual pension benefit at retirement

Answer 3

Defined Benefit Plan

Question 4

A detailed record of each employee’s earnings

Answer 4

Employee’s Earnings Record

Question 5

Federal Insurance Contributions Act tax used to finance federal programs for old-age and disability benefits

Answer 5

FICA Tax

Question 6

Benefits provided to employees in addition to wages and salaries

Answer 6

Fringe Benefits

Question 7

The total earnings of an employee

Answer 7

Gross Pay

Question 8

Gross pay less payroll deductions

Answer 8

Net Pay

Question 9

A multicolumn report used to assemble and summarize payroll data at the end of each payroll period

Answer 9

Payroll Register

Question 10

A cash payment to retired employees

Answer 10

Pension

Question 11

Cash and other current assets that can be quickly converted to cash, such as marketable securities and receivables

Answer 11

Quick Assets

Question 12

= Quick Assets / Current Liabilities

Answer 12

Quick Ratio