Question 1

A current liability is a debt that is reasonably expected to be paid

Question 1 options:

	between 6 months and 18 months
	out of currently recognized revenues
	within one year
	out of cash currently on hand

Question 2

On June 8, Williams Company issued an $80,000, 5%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note?

Question 2 options:

	$82,600
	$84,000
	$81,333
	$88,200

Question 3

On January 5, Thomas Company, which follows a calendar-year, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 each of the next four years. The proper balance sheet presentation on December 31 is

Question 3 options:

	Current liabilities, $1,000,000
	Current liabilities, $250,000; Long-term debt, $750,000
	Long-term debt, $1,000,000
	Current liabilities, $750,000; Long-term debt, $250,000

Question 4

Sadie White receives an hourly wage rate of $30, with time-and-a-half pay for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $300; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to White?

Question 4 options:

	$1,443.00
	$1,143.00
	$1,260.00
	$1,000.00

Question 5

Davis and Thompson have earnings of $850 each. The social security tax rate is 6% and the Medicare tax rate is 1.5%. Assuming that the payroll will be paid on December 29, what will be the employer's total FICA tax for this payroll period?

Question 5 options:

	$102.00
	$127.50
	$96.00
	$25.50

Question 6

Which of the following will have no effect on an employees take-home pay?

Question 6 options:

	social security tax
	unemployment tax
	marital status
	number of exemptions claimed