Accounting Questions?
1)Assuming a FICA tax rate of 8% on the first $90,000 in wages, and a federal income tax rate of 20% on all wages, what would be an employee’s net pay for the year if he earned $100,000 for the year?
a-$92,800
b-$72,000
c-$80,000
d-$72,800
2) disclosure of acontingent liability is usually made
a-parenthetically in the body of the balance sheet
b- parenthetically in the body of the income statment
c- in a note to the financial statments
d- in the management discussion section of the financial statement
3) which one of the following payroll taxes is NOT withheld from an employees wages because it is not levied on the employee?
a-federal income tax
b-federal unemployment tax
c-state income tax
d-FICA tax
4) an employers estimated cost for post retirement benefits for its employees should be
a-recognized as an expense when paid
b-recognized as an expense during the employees work years
c-recognized as an expense during the employees retirement years
d-charged to the goodwill account because providing employees with benefits generates employee goodwill
5) A truck costing $110,000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $50,000. An insurance check for $125,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a
a- gain on disposal of $15,000
b-credit to the truck account of $60,000
c-credit to the accumulated depreciation account for $50,000
d-gain on disposal of $65,000
6) natural resources are
a-depreciated using the units of activity method
b-physically extracted in operations and are replaceable only by an act of nature
c-reported at their market value
d-amortized over a period no longer than 40 years
7) a computer company has $2,000,000 in research and development costs. Before accounting for these costs, the net income of the company is $1,600,000. What is the amount of net income or loss after these R&D costs are accounted for?
a-$400,000 loss
b-$1,600,000 net income
c-$0
d-cannot be determined from the information provided
8)During 2008 tyler corporation reported net sales of $3,000,000 and net income of $1,800,000. Tyler also reported beginning total assets of $1,000,000 and ending total assets of $1,500,000. Tylers asset turnover ratio is
a-3.0 times
b-2.4 times
c-2.0 times
d-1.4 times
9) Gains on an exchange of plant assets that has commercial substance are
a-deducted from the cost of the new asset acquired
b-deferred
c-not possib
Thanks a lot man I will deff trust you, you seem to know your stuff I got some more questions if thats cool with you
1) d. 90,000*0.08 = 7,200 and 100,000*0.20 = 20,000, so 100,000-7,200-20,000=72,800
2) c. in a footnote
3) b-federal unemployment tax
4) b-recognized as an expense during the employees work years (matching principle)
5) d-gain on disposal of $65,000
Book Value of truck = 110,000-50,000 = 60,000; Gain = 125,000-60,000=65,000
6) I don’t like this question: Natural resources are DEPLETED using what could be called the ‘units of activity method,’ but they are not depreciated. The best answer is probably: b-physically extracted in operations and are replaceable only by an act of nature
7) Under U.S. GAAP, all R & D expenditures are charged to expense, so the answer is:
a-$400,000 loss
The Asset T/O Ratio is Revenues/Total Assets = 3M/1.5M = 2.0 or c-2.0 times
9) a-deducted from the cost of the new asset acquired
I hope this helps
1) d. 90,000*0.08 = 7,200 and 100,000*0.20 = 20,000, so 100,000-7,200-20,000=72,800
2) c. in a footnote
3) b-federal unemployment tax
4) b-recognized as an expense during the employees work years (matching principle)
5) d-gain on disposal of $65,000
Book Value of truck = 110,000-50,000 = 60,000; Gain = 125,000-60,000=65,000
6) I don’t like this question: Natural resources are DEPLETED using what could be called the ‘units of activity method,’ but they are not depreciated. The best answer is probably: b-physically extracted in operations and are replaceable only by an act of nature
7) Under U.S. GAAP, all R & D expenditures are charged to expense, so the answer is:
a-$400,000 loss
9) a-deducted from the cost of the new asset acquired
I hope this helps
References :
Current college accounting instructor (that just finished grading finals!)
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