If a company mistakenly counts more items during a physical inventory than actually exist, how will the error affecttheir bottom line?
a. no change to net income
b. net income will be overstated
c. net income will be understated
d. only gross profit will be affected
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Q. 2) Bad debts expense is a contra-asset account on the balance sheet.
Indicate whether the statement is true or false
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Q. 3) Threat monitoring is a technique to protect one network from another untrusted network.
Indicate whether the statement is true or false
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Q. 4) If an employer wishes, the FUTA tax may be deducted from employees' earnings.
a. True
b. False
Indicate whether the statement is true or false
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Q. 5) On June 30, 2011, Xanadu Corporation issued 200,000 of 10-year, 8 bonds at 99. The bonds pay interest semi-annually on June 30 and December 31. How much cash will bondholders receive on December 31, 2011, the first interest payment date?
A) 8,000
B) 4,000
C) 7,840
D) 16,000
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Q. 6) In December 2011, B. Rich worked for Payless, Inc. and earned 10,000. Federal income tax withholding is 20. The FICA rate is 6.2 and the Medicare tax is 1.45. What is B. Rich's net pay?
A) 10,000
B) 8,000
C) 7,235
D) 6,615
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