The main reason that the bank statement cash balance and the company's cash balance do notinitially balance isdue to timing differences.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) Identify each of the liabilities listed below using the following code:
a. definitely determinable liability
b. estimated liability
_______ 1. purchased merchandise on account
_______ 2. had the employees work all month but won't pay them until next month
_______ 3. owes the bank interest on an outstanding loan
_______ 4. withheld 9,000 from the employees' earnings for payroll taxes
_______ 5. sold 1,000,000 units during the current period and agreed to fix or replace each unit sold if it did not last two years or completely satisfy the customer
_______ 6. borrowed money from a local bank
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Q. 3) Application documentation that describes the application and contains instructions for preparing inputs and using outputs is a(n):
a. operations run manual
b. user manual
c. program documentation
d. systems documentation
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Q. 4) Which method requires the unit cost is calculated by dividing the total cost of goods available for sale by the total number of units available for sale?
A) FIFO
B) LIFO
C) Weighted average method
D) Specific identification
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Q. 5) The ____________________ tax is levied on employers to raise funds to pay unemployment benefits.
Fill in the blank(s) with correct word
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Q. 6) Payless, Inc's gross payroll was 100,000 for the current pay period. Federal income tax (FIT) withheld totals 20,000. The FICA (Social Security) rate is 6.2 and the Medicare rate is 1.45.
Part A: Show the effect of paying its employees (do not record the employer's payroll taxes):
Shareholders' equity
Assets Liabilities CC Retained earnings
Part B: How much cash will Payless, Inc have to pay to the government for Federal income taxes, Social Security, and Medicare on the gross payroll of 100,000?
What will be an ideal response?
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