Fill in the Blanks: Chapter Twelve
1. ____________ Current liabilities are debts or obligations that will be paid within one year or the operating cycle.
2. Sales tax is an example of a collection for a ____________third party.
3. Another name for an accrued liability is an ____________accrued expense.
4. The discount on notes payable is reported as a ____________contra liability.
5. The process of reducing the discount by recognizing interest expense is frequently referred to as____________discount amortization.
6. Liabilities that are not definite and absolute, but instead give rise to potential liabilities, are known as ____________contingent liabilities.
7. The guidelines for recording contingent liabilities into the accounts stipulate that the future event be ____________probable and the amount of liability be ____________reasonably estimable.
8. Warranty costs should be expensed in the period of ____________sale.
9. The ____________Federal Insurance Contributions Act, commonly called Social Security/Medicare, provides retirement, financial, and medical benefits to aged, disabled, widows, and orphans.
10. The amount withheld for federal income taxes is based on employee earnings, frequency of pay, marital status, and the number of ____________withholding allowances claimed.
11. A formal name for the Form W-2 is the ____________wage and tax statement.
12. The tax imposed by Federal and state governments to financially assist unemployed workers is the ____________unemployment tax.
13. A ____________pension plan is an agreement between a company and its employees that provides for retirement benefits.
13. Employers typically finance retirement plans by making periodic cash payments directly into a ____________pension fund.