An employee earned $4,600 in February working for an employer. Cumulative earnings of the previous pay periods are $4,800. The FICA tax rate for Social Security is 6.2% of the first $128,400 of earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount the employer should record as payroll taxes expense for the month of February?
A. $483.90
B. $110.00
C. $351.90
D. $581.90
E. $230.00
Answer: A
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For several years, Flame Corporation has had a current ratio that was consistent with other companies in its industry. For the most recent year, Flame's current ratio was significantly higher than that for the industry. What is the best possible explanation for this situation?
a. The other companies in the industry were not as profitable. b. Flame's liquidity has improved or is not leveraging financial resources effectively. c. Flame has less property, plant and equipment than other companies. d. Flame has too much debt.
The allowance for doubtful accounts will not be precise by either the client or the auditor because of which of the following reasons?
a. It is an accounting estimate based upon judgment. b. GAAP is not clear on the calculation of the allowance. c. It is merely a reserve that is reversed by the client as income is needed for profitable results. d. The precision is determined by the results of confirmation responses.
Warby Parker was developed to challenge the dominant player in the market for eyewear. Founder Neil Blumenthal realized that a major firm, Luxottica, had an almost monopolistic hold on the eyewear and vision industry. They could therefore set high prices. He and his partners developed Warby Parker to develop less expensive glasses in-house at a fraction of the cost. Not only are Warby Parker's glasses much more affordable, but also the company donates money to a vision care nonprofit organization for every pair of glasses it sells. This allows people in developing countries access to eyewear who normally could not afford it. Warby Parker is an example of a company that has successfully engaged in disruptive innovation.
Answer the following statement true (T) or false (F)
________ is the primary process by which employees learn the knowledge that enables them to understand and adapt to the organization's culture.
A. Networked culture B. Customer service training C. Culture framework D. Socialization E. Communal culture