121. All of the complying with statements about FICA taxes are True except:
A. FICA taxes are deducted from 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 credited to a liability account.
D. A self-employed perboy is exempt from FICA taxes.
E. An employer need to pay FICA taxes equal to the amount withhosted from the employee.
122. Arena Company kind of offers wellness insurance to its employees that costs $15,000 per month. In addition, the agency contributes 5% of the employees' $150,000 gross salary to a retirement routine. The enattempt to record the accrued benefits for the month would certainly include a:
A. Delittle bit to Medical Insurance Payable $15,000.
B. Delittle bit to Employee Retirement Program Payable $7,500.
C. Delittle to Employee Benefits Expense $22,500.
D. Credit to Employee Benefits Expense $15,000.
E. Credit to Employee Benefits Expense $22,500.
123. Arena Company's salaried employees earn 2 weeks vacation per year. It pays $858,000 in total employee salaries for 52 weeks yet its employees work only 50. Record Arena Company's weekly journal enattempt to document the vacation expense:
A. Debit Vacation Benefits Expense $16,500; crmodify Vacation Benefits Payable $16,500.
B. Delittle bit Vacation Benefits Expense $17,160; crmodify Vacation Benefits Payable $17,160.
C. Delittle Vacation Benefits Expense $17,875; credit Vacation Benefits Payable $17,875.
D. Delittle Vacation Benefits Payable $17,160; credit Vacation Benefits Expense $17,160.
E. Delittle bit Vacation Benefits Payable $16,500; crmodify Vacation Benefits Expense $16,500.
124. All of the adhering to statements concerned existing liabilities for UNITED STATE GAAP and also IFRS are True except:
A. The definitions and features of existing liabilities are generally similar for both U.S. GAAP and also IFRS.
B. Provision is typically provided under IRFS to refer to liability under U.S. GAAP.
C. Because taxation regulatory units of countries are different, the approach to recording taxes is completely different.
D. When tright here is bit uncertainty surrounding current liabilities, both require carriers to record them in a similar manner.
E. When there is a known present duty that entails an unspecific amount, but one that deserve to be reasonable estimated, both call for comparable treatment.
125. All of the adhering to statements pertained to recording warranty cost are True except:
A. Recording approximated warranty expense follows the complete disclocertain principle.
B. Warranty expense should be tape-recorded in the duration as soon as the warranty service is perdeveloped.
C. Recording approximated warranty price adheres to the corresponding principle.
D. The seller reports a warranty responsibility as a licapability.
E. Warranty costs are probable and the amount have the right to be estimated.
126. Throughout August, Arena Company type of sells $356,000 in product that has actually a one year warranty. Experience reflects that warranty prices average about 5% of the selling price. The warranty licapacity account has actually a balance of $12,800 before adjustment. Customers changed product for warranty repairs throughout the month that supplied $9,400 in components for repairs. The entry to document the estimated warranty cost for the month is:
A. Debit Warranty Expense $17,800; credit Estimated Warranty Licapability $17,800.
B. Debit Warranty Expense $5,000; crmodify Estimated Warranty Liability $5,000.
C. Delittle Warranty Expense $14,400; crmodify Estimated Warranty Licapability $14,400.
D. Delittle bit Estimated Warranty Licapacity $9,400; crmodify Warranty Expense $9,400.
E. Delittle Estimated Warranty Licapability $17,800; credit Warranty Expense $17,800.
127. During August, Arena Company sells $356,000 in product that has actually a one year warranty. Experience mirrors that warranty expenses average about 5% of the selling price. The warranty liability account has actually a balance of $12,800 before adjustment. Customers went back product for warranty repairs in the time of the month that provided $9,400 in parts for repairs. The entry to record the customer warranty repairs is:
A. Delittle bit Warranty Expense $17,800; credit Estimated Warranty Licapability $17,800.
B. Delittle bit Warranty Expense $9,400; crmodify Estimated Warranty Licapacity $9,400.
C. Debit Warranty Expense $14,400; credit Estimated Warranty Licapacity $14,400.
D. Delittle bit Estimated Warranty Licapacity $9,400; crmodify Parts Inventory $9,400.
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E. Delittle bit Estimated Warranty Licapability $17,800; credit Parts Inventory $17,800.