Chapter 9 Questions

Question 1

Obligations that are due within one year are:

Answer 1

reported as a current liability

Question 2

Are life insurance premiums, pension contributions, and union dues considered voluntary deductions?

Answer 2

Yes

Question 3

Do employers have to pay pension contributions?

Answer 3

No

Question 4

A contingent liability:

Answer 4

is a potential liability that has arisen because of a past event or transaction.

Question 5

The times interest earned ratio is computed as:

Answer 5

income before interest expense and income taxes divided by interest expense.

Question 6

The form which must be filed when an employer withholds federal income tax and FICA taxes is:

Answer 6

Form 941

Question 7

The form which calculates and reports the employer’s federal unemployment taxes is:

Answer 7

Form 940

Question 8

The report of wages subject to FICA and federal income taxes along with the amounts of these taxes withheld must be provided to employees on:

Answer 8

Form W-2

Question 9

This internal record is a cumulative summary of an employee’s hours worked, gross earnings, deductions, and net pay.

Answer 9

Employee Earnings Report

Question 10

This withholding allowance certificate is prepared by the employee and it is filed with the employer.

Answer 10

Form W-4