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Match Each of the Following Terms with the Appropriate Definitions

Question 189

Matching

Match each of the following terms with the appropriate definitions:

Premises:

Responses:

Income before interest expense and income taxes divided by interest expense.

Payroll bank account

A special bank account used solely for paying employees.

Deferred income tax liability

Obligations due within one year or the company's operating cycle, whichever is longer.

Employee benefits

A record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay, and deductions.

Payroll register

A written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer.

Times interest earned

Additional compensation paid to or on behalf of employees, such as premiums for medical insurance and contributions to pension plans.

Warranty

Total compensation earned by an employee.

Short-term note payable

Payments of income taxes that are not due until future years because of temporary differences between GAAP and tax accounting rules.

Federal depository bank

A seller's obligation to repair or replace a product or service that fails to perform as expected within a specified period.

Current liabilities

A bank authorized to accept deposits of amounts payable to the federal government, including payroll taxes.

Gross pay

Premises:

Income before interest expense and income taxes divided by interest expense.

A special bank account used solely for paying employees.

Obligations due within one year or the company's operating cycle, whichever is longer.

A record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay, and deductions.

A written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer.

Additional compensation paid to or on behalf of employees, such as premiums for medical insurance and contributions to pension plans.

Total compensation earned by an employee.

Payments of income taxes that are not due until future years because of temporary differences between GAAP and tax accounting rules.

A seller's obligation to repair or replace a product or service that fails to perform as expected within a specified period.

A bank authorized to accept deposits of amounts payable to the federal government, including payroll taxes.

Responses:

Payroll bank account

Deferred income tax liability

Employee benefits

Payroll register

Times interest earned

Warranty

Short-term note payable

Federal depository bank

Current liabilities

Gross pay

Correct Answer:

Premises:

Responses:

Income before interest expense and income taxes divided by interest expense.

A special bank account used solely for paying employees.

Obligations due within one year or the company's operating cycle, whichever is longer.

A record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay, and deductions.

A written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer.

Additional compensation paid to or on behalf of employees, such as premiums for medical insurance and contributions to pension plans.

Total compensation earned by an employee.

Payments of income taxes that are not due until future years because of temporary differences between GAAP and tax accounting rules.

A seller's obligation to repair or replace a product or service that fails to perform as expected within a specified period.

A bank authorized to accept deposits of amounts payable to the federal government, including payroll taxes.