51. Employers must keep certain payroll records, including individual earnings reports for each employee.
52. An employee earnings report is a cumulative record of an employee's hours worked, gross earnings, deductions, and net pay.
53. When the number of withholding allowances increases, the amount of income tax withheld increases.
54. The Form W-2 must be given to employees before January 31 following the year covered by this report.
55. Payments of FUTA are made quarterly to a federal depository bank if the total amount due exceeds $1,000.
Multiple Choice Questions
56. Obligations due to be paid within one year or within the company's operating cycle, whichever is longer, are:
A. Current assets
B. Current liabilities
C. Earned revenues
D. Operating cycle liabilities
E. Bills
57. Obligations not expected to be paid within one year (or the company's operating cycle if longer than one year) are reported as:
A. Current assets
B. Current liabilities
C. Long-term liabilities
D. Operating cycle liabilities
E. Bills
58. Liabilities:
A. Must be certain.
B. Must sometimes be estimated.
C. Must be for a specific amount.
D. Must always have a definite date for payment.
E. Must involve an outflow of cash.
59. Accounts payable:
A. Are amounts owed to suppliers for products and/or services purchased on credit.
B. Are long-term liabilities.
C. Are estimated liabilities.
D. Do not include specific due dates.
E. Must be paid within 30 days.
60. Amounts received in advance from customers for future products or services:
A. Are revenues.
B. Increase income.
C. Are liabilities.
D. Are not allowed under GAAP.
E. Require an outlay of cash in the future.