Answer the following statements true (T) or false (F)
1. A known obligation of an uncertain amount that can at least be reasonably estimated is
reported as an estimated liability.
2. Accrued vacation benefits are a form of estimated liability for an employer.
3. A liability is incurred when income is earned because income tax expense is created by earning income.
4. A corporation has a $40,000 credit balance in the Income Tax Payable account. Period end information shows that the actual liability is $47,000. The company should record an entry to debit Income Tax Expense for $7,000 and credit Income Taxes Payable for $7,000.
5. Employers can use a wage bracket withholding table to compute federal income taxes withheld from each employee's gross pay.
1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. TRUE
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Which of the following taxes would be deducted in determining an employee's net pay?
a. FUTA taxes b. SUTA taxes c. FICA taxes d. all are correct
Output and employment in Country Y has fallen below its equilibrium level. Which of the following groups of economists is likely to believe that output and employment will return to its equilibrium level without government intervention?
A. Keynesian economists B. Post-modern economists C. Monetarists D. Classical economists
The Sarbanes-Oxley Act requires all private companies in the United States to maintain an internal control system
Indicate whether the statement is true or false
Which of the following is true with regard to push and pull systems?
a. Push systems are systems in which services or products are produced based on forecasts. b. In pull systems, the product or service is produced because its production is mandated by a central planning organization. c. In pull systems, the product or service is regulated by a government agency. d. In push systems, inventory is completely eliminated.