121. All of the following statements about FICA taxes are True except:
A. FICA taxes are deducted native the employee.
You are watching: All of the following statements regarding fica taxes are true except:
B. Employers should pay withheld FICA taxes to the IRS.
C. The amount of FICA deducted from the employee is attributed to a legal responsibility account.
D. A self-employed human is freed from FICA taxes.
E. An employer should pay FICA taxes equal to the lot withheld indigenous the employee.
122. Arena agency provides health and wellness insurance come its employee that prices $15,000 every month. In addition, the firm contributes 5% of the employees' $150,000 gross salary to a retirement program. The entry to document the accrued services for the month would incorporate a:
A. Debit to clinical Insurance Payable $15,000.
B. Debit to Employee Retirement regime Payable $7,500.
C. Debit come Employee Benefits cost $22,500.
D. Credit come Employee Benefits expense $15,000.
E. Credit come Employee Benefits cost $22,500.
123. Arena Company's salaried employees earn two weeks vacation per year. It pays $858,000 in total employee wages for 52 weeks however its employees occupational only 50. Document Arena Company's weekly journal entry to record the holidays expense:
A. Debit holidays Benefits price $16,500; credit transaction Vacation services Payable $16,500.
B. Debit vacation Benefits cost $17,160; credit Vacation services Payable $17,160.
C. Debit holidays Benefits expense $17,875; credit transaction Vacation benefits Payable $17,875.
D. Debit Vacation benefits Payable $17,160; credit transaction Vacation Benefits price $17,160.
E. Debit Vacation benefits Payable $16,500; credit Vacation Benefits cost $16,500.
124. All the the complying with statements associated to present liabilities for U.S. GAAP and IFRS space True except:
A. The definitions and characteristics of current liabilities space broadly comparable for both U.S. GAAP and IFRS.
B. Provision is commonly used under IRFS to describe liability under U.S. GAAP.
C. Because taxation regulatory solution of nations are different, the technique to record taxes is totally different.
D. When there is little uncertainty surrounding present liabilities, both require suppliers to record them in a similar manner.
E. When over there is a known current obligation that requires an uncertain amount, however one that can be reasonable estimated, both require comparable treatment.
125. All the the adhering to statements concerned recording warranty expense are True except:
A. Recording approximated warranty price complies through the full disclosure principle.
B. Warranty price should be videotaped in the period when the warranty organization is performed.
C. Recording approximated warranty cost complies through the equivalent principle.
D. The seller reports a warranty obligation as a liability.
E. Warranty prices are probable and also the amount can be estimated.
126. During August, Arena agency sells $356,000 in product that has a one year warranty. Experience shows that warranty expenses average around 5% of the marketing price. The warranty liability account has a balance the $12,800 prior to adjustment. Customers returned product for warranty repairs throughout the month that supplied $9,400 in components for repairs. The entrance to document the estimated warranty expense for the month is:
A. Debit Warranty expense $17,800; credit approximated Warranty legal responsibility $17,800.
B. Debit Warranty price $5,000; credit approximated Warranty legal responsibility $5,000.
C. Debit Warranty price $14,400; credit approximated Warranty legal responsibility $14,400.
D. Debit estimated Warranty legal responsibility $9,400; credit transaction Warranty price $9,400.
E. Debit approximated Warranty legal responsibility $17,800; credit Warranty price $17,800.
127. During August, Arena firm sells $356,000 in product that has actually a one year warranty. Experience reflects that warranty prices average about 5% of the offering price. The warranty legal responsibility account has actually a balance of $12,800 before adjustment. Customers changed product because that warranty repairs throughout the month that supplied $9,400 in components for repairs. The entrance to document the client warranty repair is:
A. Debit Warranty expense $17,800; credit estimated Warranty legal responsibility $17,800.
B. Debit Warranty expense $9,400; credit estimated Warranty liability $9,400.
C. Debit Warranty cost $14,400; credit approximated Warranty liability $14,400.
D. Debit approximated Warranty legal responsibility $9,400; credit components Inventory $9,400.
See more: A Loop Of Wire Carries A Current. The Resulting Magnetic Field __________.
E. Debit estimated Warranty liability $17,800; credit parts Inventory $17,800.