Question 1

The relationship between current liabilities and current assets is

Accepted Answer

A)   useful in determining income.
B)   useful in evaluating a company's short-term debt paying ability.
C)   called the matching principle.
D)   useful in determining the amount of a company's long-term debt.E) B) and C)
F) A) and D)

Question 2

Davis Company has a December 31 year end. The company received its property tax bill for 2017 on March 1, 2017. According to the bill, taxes of $24,000 for the year ended December 31, 2017 are due by April 30, 2017. On April 30, 2017, Davis will record which of the following entries?

Accepted Answer

A)   Dr. Cash; Cr. Property Tax Payable
B)   Dr. Property Tax Payable; Dr. Prepaid Property Tax; Cr. Cash
C)   Dr. Property Tax Expense; Cr. Property Tax Payable
D)   Dr. Property Tax Expense; Cr. CashE) A) and D)
F) B) and C)

Question 3

Ann Parks has worked 44 hours this week. Six of these 44 hours were on the weekend. Her regular hourly wage is $15 per hour with one and one-half times her regular rate for weekend work. What are Ann's gross wages for the week?

Accepted Answer

A)   $660
B)   $705
C)   $990
D)   $795E) A) and B)
F) A) and C)

Question 4

The employer should record payroll deductions as

Accepted Answer

A)   current liabilities.
B)   non-current liabilities.
C)   employee advances receivable.
D)   employee advances payable.E) None of the above
F) B) and C)

Question 5

The employer is currently required to withhold a premium of 1.88% on insured earnings to a maximum earnings ceiling of $49,500. Dallas Reimer earns $1,000 per week. What amount of Employment Insurance (EI)  will be deducted from Dallas's pay each week?

Accepted Answer

A)   $18.80
B)   $0
C)   $839.97
D)   $25.62E) C) and D)
F) A) and D)

Question 6

A note payable is in the form of

Accepted Answer

A)   a contingency that is reasonably likely to occur.
B)   a written promissory note.
C)   an oral agreement.
D)   a standing agreement.E) A) and B)
F) A) and C)

Question 7

Under IFRS, the term used for an uncertain liability is

Accepted Answer

A)   contingent liability.
B)   undeterminable liability.
C)   provision.
D)   estimated liability.E) None of the above
F) A) and B)

Question 8

Sales taxes apply to all sales.

Accepted Answer

A) True 
 B)False

Question 9

At its December 31, 2017 year end, Jamison Company recorded $200 interest payable on a $10,000, 3 month, 5% note payable. The company's financial statements will present notes payable of $10,200.

Accepted Answer

A) True 
 B)False

Question 10

The employer is currently required to pay a premium for Employment Insurance (EI)  on pensionable earnings of

Accepted Answer

A)   1.88% to a maximum earnings ceiling of $ $49,500 times 1.4 the employee contribution.
B)   1.88% to a maximum earnings ceiling of $49,500.
C)   1.4% to a maximum earnings ceiling of $49,500.
D)   1.88%.E) None of the above
F) A) and B)

Question 11

Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions, employment insurance (EI), and personal income taxes are mandatory payroll deductions.

Accepted Answer

A) True 
 B)False

Question 12

Post-employment benefits are payments made by

Accepted Answer

A)   retired employees.
B)   terminated employees.
C)   employees.
D)   employers.E) None of the above
F) C) and D)

Question 13

An operating line of credit

Accepted Answer

A)   is a non-current liability.
B)   is required by all companies.
C)   helps companies manage temporary cash shortages.
D)   is usually required by the bank in case a company is unable to repay a loan.E) None of the above
F) A) and B)

Question 14

It is NOT necessary to prepare an adjusting entry to recognize the current maturity of long-term debt.

Accepted Answer

A) True 
 B)False

Question 15

The employer's share of Canada Pension Plan is ___ the employee's share.

Accepted Answer

A)   higher than
B)   lower than
C)   equal to
D)   Employers are not required to share in this cost.E) All of the above
F) None of the above

Question 16

The designated collection agency for payroll deductions is

Accepted Answer

A)   the Canada Revenue Agency.
B)   Employment Canada.
C)   Health and Welfare Canada.
D)   HRDC.E) A) and B)
F) A) and C)

Question 17

Employees claim non-refundable credits for income tax withholding on

Accepted Answer

A)   form (TD1) .
B)   form (T4) .
C)   form (T1) .
D)   form (PD7
A)  .E) C) and D)
F) A) and B)

Question 18

An operating line of credit is a credit which is set up by a major supplier to assist the company with their purchases online.

Accepted Answer

A) True 
 B)False

Question 19

Most companies are required by law to calculate overtime at

Accepted Answer

A)   the worker's regular hourly wage.
B)   1.25 times the worker's regular hourly wage for hours over 42 per week.
C)   1.5 times the worker's regular hourly wage for hours over 44 per week.
D)   2.5 times the worker's regular hourly wage for hours over 37.5 per week.E) A) and D)
F) All of the above

Question 20

A note payable must always have an interest rate attached to it.

Accepted Answer

A) True 
 B)False

Exam 10: Current Liabilities and Payroll

It is NOT necessary to prepare an adjusting entry to recognize the current maturity of long-term debt.

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The designated collection agency for payroll deductions is

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The employer is currently required to withhold a premium of 1.88% on insured earnings to a maximum earnings ceiling of $49,500. Dallas Reimer earns $1,000 per week. What amount of Employment Insurance (EI) will be deducted from Dallas's pay each week?

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Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions, employment insurance (EI), and personal income taxes are mandatory payroll deductions.

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Davis Company has a December 31 year end. The company received its property tax bill for 2017 on March 1, 2017. According to the bill, taxes of $24,000 for the year ended December 31, 2017 are due by April 30, 2017. On April 30, 2017, Davis will record which of the following entries?

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Post-employment benefits are payments made by

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Sales taxes apply to all sales.

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A note payable is in the form of

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A note payable must always have an interest rate attached to it.

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The employer's share of Canada Pension Plan is ___ the employee's share.

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The employer should record payroll deductions as

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An operating line of credit

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Employees claim non-refundable credits for income tax withholding on

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Ann Parks has worked 44 hours this week. Six of these 44 hours were on the weekend. Her regular hourly wage is $15 per hour with one and one-half times her regular rate for weekend work. What are Ann's gross wages for the week?

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Most companies are required by law to calculate overtime at

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At its December 31, 2017 year end, Jamison Company recorded $200 interest payable on a $10,000, 3 month, 5% note payable. The company's financial statements will present notes payable of $10,200.

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The relationship between current liabilities and current assets is

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The employer is currently required to pay a premium for Employment Insurance (EI) on pensionable earnings of

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Under IFRS, the term used for an uncertain liability is

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An operating line of credit is a credit which is set up by a major supplier to assist the company with their purchases online.

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