Chapter 10 Flashcards
Discounted Note
The Interest rate on the note is called a discount rate.
The amount of the interest on note is call a discount.
Discount rate•face value
FUTA
Federal unemployment tax act
How are “Notes Payable” recorded at the end of the fiscal year??
As a “current liability” & “long-term liability”
FICA
Federal Insurance Contributions Act
FICA Includes?
Social security
&
Medicare
SUTA
State Unemployment Tax Act
3 Ratio’s of Crrent Liabilities
Working Capital
Current Ratio
Quick Ratio
Working Cpital Ratio
Current assets — current liabilities
Current Ratio
Current Assets / Current Liabilities
Quick Assets Ratio
Cash
Temporary Accounts
Accounts Receivable
Working Capital comparison is made hard when?
There is a large size difference between two companies
Un-funded Pension Liability is reported on the balance sheet as ?
A current liability
Or long term liability
Depending upon payment date
Future pension liabilities are calculated on
Expected employee
Compensations
Employee turnover
Employee life expectancy
Payroll Entries
3 Taxes for Employees
Social Security Tax
Medicare Tax
Federal Withholding Tax
Payroll Entries
4 Taxes for the Employer
Social Security Tax
Medicare Tax
FUTA
SUTA
