Beau Brentley earned 60,000 from his job at Bridgestone Tires. He had 15 of his gross pay withheld for federal income taxes, 6.2 withheld for FICA Social Security taxes, and 1.45 withheld for Medicare taxes. What was Beau's net pay?
A) 48,200
B) 46,410
C) 48,000
D) 60,000
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Q. 2) According to the assumption used in this text, employers are required to withhold Social Security taxes on the first ____ of each employee's earnings.
a. 120,000
b. 105,900
c. 120,000
d. 110,100
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Q. 3) If a company buys an asset that will be used for more than one accounting period, an expense associated with the asset will be recognized ________.
A) when the asset is purchased
B) in the periods during which the asset is used to generate revenue
C) when the asset is sold
D) in the accounting periods during which the company has a profit
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Q. 4) Preventive controls are ________.
A) designed to monitor business risks
B) designed to identify when an error or irregularity has occurred
C) designed to stop a problem before it starts
D) directed at recovering from an error
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Q. 5) Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for thesale of May 20 using the LIFO inventory cost method.
a. 136
b. 144
c. 180
d. 120
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Q. 6) Depreciation is the ________.
A) allocation of a natural resource's cost to an expense account as the resource is consumed
B) allocation of an intangible asset's cost to an expense account over the asset's estimated useful life
C) allocation of property, plant and equipment cost to an expense account over the assets' estimated useful lives
D) capitalization of a long-term asset's cost
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