Chapter 9 Flashcards
Obligation to make a future payment if, and only if, an uncertain future event occurs.
CONTINGENT LIABILITY
Obligations due to be paid or settled within one year or the company’s operating cycle, whichever is longer.
CURRENT LIABILITIES
Portion of long-term debt due within one year or the operating cycle, whichever is longer; reported under current liabilities.
CURRENT PORTION OF LONG-TERM DEBT
Corporation income taxes that are deferred until future years because of temporary differences between GAAP and tax rules.
DEFERRED INCOME TAX LIABILITY
Additional compensation paid to or on behalf of employees, such as premiums for medical, dental, life, and disability insurance, and contributions to pension plans.
EMPLOYEE BENEFITS
Record of an employee’s net pay, gross pay, deductions, and year-to-date payroll information.
EMPLOYEE EARNINGS REPORT
Obligation of an uncertain amount that can be reasonably estimated.
ESTIMATED LIABILITY
Bank authorized to accept deposits of amounts payable to the federal government.
FEDERAL DEPOSITORY BANK
Taxes assessed on both employers and employees; for Social Security and Medicare programs.
FEDERAL INSURANCE CONTRIBUTIONS ACT (FICA) TAXES
Payroll taxes on employers assessed by the federal government to support its unemployment insurance program.
FEDERAL UNEMPLOYMENT TAXES (FUTA)
IRS form used to report an employer’s federal unemployment taxes (FUTA) on an annual filing basis.
FORM 940
IRS form filed to report FICA taxes owed and remitted.
FORM 941
Annual report by an employer to each employee showing the employee’s wages subject to FICA and federal income taxes along with amounts withheld.
FORM W-2
Withholding allowance certificate, filed with the employer, identifying the number of withholding allowances claimed.
FORM W-4
Total compensation earned by an employee
GROSS PAY
Obligations of a company with little uncertainty; set by agreements, contracts, or laws; also called DEFINITELY DETERMINABLE LIABILITIES.
KNOWN LIABILITIES
Obligations not due to be paid within one year or the operating cycle, whichever is longer.
LONG-TERM LIABILITIES
Rating assigned to an employer by a state based on the employer’s record of employment.
MERIT RATING
Gross pay less all deductions; also called TAKE-HOME PAY.
NET PAY
Bank account used solely for paying employees; each pay period an amount equal to the total employees’ net pay is deposited in it and the payroll checks are drawn on it.
PAYROLL BANK ACCOUNT
Amounts withheld from an employee’s gross pay; also called WITHHOLDINGS.
PAYROLL DEDUCTIONS
Record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay, and deductions.
PAYROLL REGISTER
Current obligation in the form of a written promissory note.
SHORT-TERM NOTE PAYABLE
State payroll taxes on employers to support its unemployment programs.
STATE UNEMPLOYMENT TAXES (SUTA)
Ratio of income before interest expense (and any income taxes) divided by interest expense; reflects risk of covering interest commitments when income varies.
TIMES INTEREST EARNED
income before interest expense & income tax expense / interest expense
Table of the amounts of income tax withheld from employees’ wages.
WAGE BRACKET WITHHOLDING TABLE
Agreement that obligates the seller to correct or replace a product or service when it fails to perform properly within a specified period.
WARRANTY
