1.            The Notes Payable account is debited on the maturity date when a note is paid. True or False

2.            The formula for calculating the interest on a note is principal times rate divided by time. True or False

Multiple Choice

3.            Payroll taxes incurred by the employer are recorded as a credit to

a.            Salaries Payable

b.            Payroll Tax Payable

c.             a separate liability account for each tax

d.            Federal Taxes Payable

4.            The journal entry to record the employer’s payroll taxes would include a

a.            credit to Salaries Expense

b.            debit to Payroll Tax Payable

c.             credit to Salaries Payable

d.            debit to Payroll Tax Expense