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Accounting for Compensation, Taxes & Liabilities Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Taxes paid during the year that are an estimate of the total income tax bill for the year are called ____ taxes.

Question 2 2. What is a long term liability?

Question 3 3. Which of the following statements is true regarding known liabilities by agreement?

Question 4 4. What is the definition of liabilities?

Question 5 5. Which account is generally credited when recording uncollectible accounts?

Page 2

Question 6 6. Which of the following statements is true regarding known liabilities by contract?

Question 7 7. Why are property taxes considered estimated liabilities?

Question 8 8. Why are warranties considered estimated liabilities?

Question 9 9.

Robert received his payslip for the month of May 2017 and the following are mentioned:

Salary: $2500

Production Bonus: $100

Sick days: $150

Income tax: $500

Which of the following is NOT a type of compensation?

Question 10 10. Choose the best answer to explain when the percent of sales method should be used.

Page 3

Question 11 11. What is tax levied by the government on money earned in the previous year?

Question 12 12. How do companies generally handle uncollectible accounts?

Question 13 13. What is a long term liability?

Question 14 14. Why are retirement liabilities considered estimated liabilities?

Question 15 15. What is the definition of liabilities?

Page 4

Question 16 16. What is the name of the account that is used to record credit sales, or money owed, to a company?

Question 17 17. The future cost of how a company affects its natural surroundings is a (an) _____ contingency.

Question 18 18. Sales tax should be recorded in accounts as a:

Question 19 19. When should benefits, like sick days, be accounted for?

Question 20 20. What are known liabilities?

Page 5

Question 21 21. Which of these is the best example of a long term liability?

Question 22 22. How is an indirect employee different from a direct employee?

Question 23 23. Which type of contingency is a lawsuit that might end up making a company have to pay money or potentially lower the value of the company?

Question 24 24. Choose the best answer to define commission.

Question 25 25. A tax refund for a company is a _____ contingency.

Page 6

Question 26 26. Which of the following statements is true regarding known liabilities by law?

Question 27 27. Which of the following statements is true regarding current liabilities?

Question 28 28. Choose the best answer to calculate a fixed amount structure.

Question 29 29. ABC Electronics has two large warehouses, but they have realized that they do not need one of them. They have put that warehouse on the market, and are currently waiting for it to sell. The warehouse is listed for 2.5 million dollars which would be a significant influx of cash for the company. Should the accountant include this contingency in her statements?

Question 30 30. What are liabilities?

Accounting for Compensation, Taxes & Liabilities Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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