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Match the Following Definitions to Their Terms

Question 194

Matching

Match the following definitions to their terms

Premises:

Responses:

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

Payroll register

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

Current liabilities

Total compensation earned by an employee.

Payroll bank account

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

Warranty

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.

Gross pay

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

Employee benefits

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

Deferred income tax liability

A special bank account used solely for paying employees.

Federal depository bank

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

Times interest earned

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

Short-term note payable

Premises:

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

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

Total compensation earned by an employee.

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

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.

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

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

A special bank account used solely for paying employees.

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

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

Responses:

Payroll register

Current liabilities

Payroll bank account

Warranty

Gross pay

Employee benefits

Deferred income tax liability

Federal depository bank

Times interest earned

Short-term note payable

Correct Answer:

Premises:

Responses:

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

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

Total compensation earned by an employee.

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

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.

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

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

A special bank account used solely for paying employees.

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

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