FAR — Financial Accounting & Reporting — Quiz 57

Questions in this quiz (10)

1. Which of the following best describes payroll liabilities?

   • Amounts owed to suppliers
   • Obligations related to employee compensation and payroll taxes
   • Revenue received in advance
   • Long-term borrowing

2. Which of the following is an employer payroll tax?

   • Medicare tax
   • Employee retirement contribution
   • Income tax withholding
   • Sales tax

3. Which account records salaries earned but unpaid at period end?

   • Salaries expense
   • Salaries payable
   • Accounts payable
   • Revenue

4. Which financial statement reports payroll expenses?

   • Balance sheet
   • Income statement
   • Statement of retained earnings
   • Statement of cash flows

5. Which liability results from collecting sales tax?

   • Sales tax payable
   • Revenue
   • Accounts receivable
   • Expense

6. Which account increases when sales tax is collected?

   • Sales tax expense
   • Sales tax payable
   • Revenue
   • Cash

7. Which entry records payment of sales tax?

   • Debit Sales Tax Payable; Credit Cash
   • Debit Cash; Credit Sales Tax Payable
   • Debit Revenue; Credit Cash
   • Debit Expense; Credit Cash

8. Which best describes bonds payable?

   • Short-term liabilities
   • Long-term debt issued to investors
   • Accounts payable
   • Deferred revenue

9. What represents the face value of a bond?

   • Market price
   • Par value
   • Interest value
   • Discount value

10. What is the interest rate stated on a bond called?

    • Market rate
    • Effective rate
    • Coupon rate
    • Discount rate