Reference no: EM132946734
Questions -
Q1. The transfer to expense of the cost of intangible assets attributed to the passage of time or decline in usefulness is called amortization.
a. True
b. False
Q2. Which of the following is included in the cost of constructing a building?
a. cost of repairing vandalism damage during construction
b. cost of paving the parking lot
c. cost of removing the demolished building existing on the land when it was purchased
d. insurance costs during construction
Q3. On June 8, Smith Technologies issued a $75,000, 6%, 140-day note payable to Johnson Company. What is the due date of the note?
a. October 28
b. October 26
c. October 25
d. October 27
Q4. Costs associated with normal research and development activities should be treated as intangible assets.
a. True
b. False
Q5. Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15-31.
Gross payroll $10,000
Federal income tax withheld $1,800
Social security rate 6%
Federal unemployment tax rate 0.8%
Medicare rate 1.5%
State unemployment tax rate 5.4%
?Salaries Payable would be recorded in the amount of
a. $7,450
b. $8,200
c. $6,830
d. $8,630
Q6. 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?
a. $81,333
b. $84,000
c. $88,200
d. $82,600
Q7. An estimate of the amount for which an asset can be sold at the end of its useful life is called residual value.
a. True
b. False
Q8. Long-lived assets that are intangible in nature, used in the operations of the business, and not held for sale in the ordinary course of business are called fixed assets.
a. True
b. False
Q9. Capital expenditures are costs of acquiring, constructing, adding, or replacing property, plant and equipment.
a. True
b. False
Q10. The name, term, or symbol used to identify a business and its products is called
a. a copyright
b. a patent
c. goodwill
d. a trademark
Q11. Payroll taxes are based on the employee's net pay.
a. True
b. False
Q12. An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $110; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee?
a. $544.88
b. $539.00
c. $625.00
d. $569.87