About the Author
Mission Statement
Contact Us
Terms of Use
Privacy Policy
Log out

Chapters 1-4 The Accounting Cycle
Chapters 5-8 Current Assets
Chapters 9-11 Long-Term Assets
Chapters 12-14 Liabilities/Equities
Chapters 15-16 Using Information
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20 Managerial/Cost
Chapters 21-24 Budgeting/Decisions

Chapter 12 - Multiple Choice

Home
quizzes

Chapter 12 – Multiple Choice

Text
Problems
Goals Achievement
Fill in the Blanks
Multiple Choice
Glossary

Time limit: 0

Quiz Summary

0 of 8 Questions completed

Questions:

Information

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

0 of 8 Questions answered correctly

Your time:

Time has elapsed

You have reached 0 of 0 point(s), (0)

Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)

Categories

Not categorized 0%

1
2
3
4
5
6
7
8

Current
Review
Answered
Correct
Incorrect

Question 1 of 8

1. Question
Typical current liabilities include:
- Prepayments by customers.
- Travel advances to employees.
- The principal portion of a mortgage note that is due beyond one year or the operating cycle, whichever is longer.
- Accumulated depreciation.
Correct

Incorrect
Question 2 of 8

2. Question
On June 1, Whit Corporation purchased a truck for $30,000. To pay for the truck, Whit issued and recorded a six-month note payable for $31,500. No other entry was recorded for the note until payment on December 1. The journal entry to record payment of the note would include:
- A debit to Interest Expense for $1,500.
- A debit to Discount on Notes Payable for $1,500.
- A debit to Notes Payable for $30,000.
- A debit to Cash for $31,500.
Correct

Incorrect
Question 3 of 8

3. Question
The Discount on Notes Payable:
- Is a contra liability account.
- Is a contingent liability account.
- Should be reported as an asset because of its debit balance.
- Is amortized to reduce interest expense over the life of the note payable.
Correct

Incorrect
Question 4 of 8

4. Question
If the journal entry to record an accrued liability were accidentally recorded twice, it would:
- Understate income for the year.
- Overstate income for the year.
- Have no effect on income for the year.
- Understate accrued liabilities at the end of the year.
Correct

Incorrect
Question 5 of 8

5. Question
The employee’s withholding allowance certificate is popularly referred to as a:
- W-2.
- W-4.
- Form 1040.
- Payroll register.
Correct

Incorrect
Question 6 of 8

6. Question
The FICA tax is levied on:
- Employees only.
- Employers only.
- Both employees and employers.
- Earnings in excess of base amounts.
Correct

Incorrect
Question 7 of 8

7. Question
Burgundy Drug Store paid $137,000 in salaries during 20X1. Salary expense for the year was $148,500 and salaries payable at the end of 20X1 amounted to $17,300. What was the amount of salaries payable as of January 1, 20X1?
- $5,800
- $11,500
- $17,300
- $28,800
Correct

Incorrect
Question 8 of 8

8. Question
The gross payroll for Zurich Corporation was $100,000. Federal income tax withheld from employee paychecks amounted to $24,000, state income tax withheld amounted to $3,000, Social Security amounted to $8,500 (the combined employee and employer portions), and Medicare amounted to $3,500 (the combined employee and employer portions). Furthermore, employees elected to have $1,000 of insurance and charitable contributions withheld from their paychecks. How much was net pay?
- $34,000
- $60,000
- $66,000
- $72,000
Correct

Incorrect

Click here to visit the bookstore and purchase principlesofaccounting.com textbooks!

Additional Resources

Illustrative Entries

Examples of journal entries for numerous sample transactions

Account Types

Typical financial statement accounts with debit/credit rules and disclosure conventions

Glossary

Includes financial and managerial terms

Time Value of Money

Future and present value tables

Important Links

Classroom
ExamCram
Bookstore
YouTube videos
MyExceLab
Certificates
Cookie Policy

Glossary Search

Principlesofaccounting.com ™ Copyright © 2023. All rights reserved.

Chapters 1-4
Chapters 5-8
Chapters 9-11
Chapters 12-14
Chapters 15-16
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20
Chapters 21-24
About the Author
Mission Statement
Contact Us
Terms of Use
Privacy Policy
Log out