Financial HM - due in 90 minutes

The payables turnover is the number of times, on average, that a company pays its accounts payable in an accounting period.

 

Vacation pay is charged properly as an expense in the month in which the employee takes a vacation.

 

The days' payable shows the maximum time a company takes to pay its accounts payable.

 

Interest on a promissory note is recognized when the note is issued.

 

If the present value of the net cash flows expected from a machine is less than its purchase price, the investment should not be made.

 

Recording estimated product warranty expense in the year of the sale best follows which of the following accounting principles?

 

Which of the following taxes is not subject to a maximum amount per employee per year?

 

Use this information to answer the following question.

The transactions below pertain to Dunhill Company, whose fiscal year ends April 30.

April	10		Received cash for a 90-day, 12 percent, $50,000 note payable. Interest is in addition to the face value.
	30		Made end-of-year adjusting entry to accrue interest expense.

The entry to record the April 10 transaction (amounts rounded) is:

 

Which of the following most likely is an estimated liability?

 

Use this information to answer the following question.

Panadora Company has the following information for the pay period of January 1-15, 2014. Payment occurs on January 20.

Gross payroll	$32,000		Federal income taxes withheld	$3,600
Social security and Medicare rate	7.65%		Federal unemployment tax rate	0.8%
State unemployment tax rate	5.4%

The entry on January 20 would be a debit to

 

A contingent liability is best described as a(n)

 

All of the following can be employee payroll withholdings except

 

Hilda wishes to deposit an amount into her savings account that will enable her to withdraw $1,600 per year for the next four years. She should deposit an amount equal to $1,600 multiplied by the

 

Second National Bank computes interest semiannually. If the annualized interest rate (APR) is currently 6 percent, the amount deposited today should be multiplied by which future value factor to calculate the amount that will accumulate by the end of 10 years?

 

To find the days' payable,

 

Use this information to answer the following question.

The following totals for the month of September were taken from the payroll register of Meadors Company:

Salaries expense	$24,000
Social security and Medicare taxes withheld	1,100
Income taxes withheld	5,000
Medical insurance deductions	500
Life insurance deductions	400
Salaries subject to federal and state unemployment taxes of 6.2 percent	8,000

The amount of liabilities relating to payroll, other than Salaries Payable, is

 

A business accepts a 12 percent, $94,000 note due in three years. Assuming simple interest, how much will the business receive when the note falls due?

 

During May, Phone Mart sold 150 iPhones for $200 each. Each iPhone had cost Phone Mart $108 to purchase and carried a one-year warranty. If 4 percent typically need to be replaced over the warranty period and two actually are replaced during May, the entry to record the Product Warranty Expense is

 

Use this information to answer the following question.

Periods	Present Value of $1 at 7 Percent	Present Value of Ordinary Annuity  of $1 at 7 Percent
1	0.935	0.935
2	0.873	1.808
3	0.816	2.624

What amount must be deposited today so that $1,200 may be withdrawn at the end of each year for three years, assuming an APR of 7 percent?

 

Company A’s current assets = $10,000, total assets = $26,000, current liabilities = $7,000 and total liabilities = $47,000. What is Company A’s working capital?