Chapter 11 Flashcards
1
Q
Potential liability that depends on some future event
A
Contingent Liability
2
Q
Amount of the principal that is payable within one year
A
Current Portion of Notes Payable
3
Q
Federal act that created Social Security tax that provides retirement, disability, and medical benefits
A
Federal Insurance Contributions Act (FICA)
4
Q
Gross Pay - Deductions
A
Net Pay
5
Q
Schedule that summarizes the earnings, withholdings, and net pay for each net pay for each employee
A
Payroll Register
6
Q
Plan that provides benefits to retired employees
A
Pension Plan
7
Q
Tax that is withheld from an employee’s pay and matched by the employer
A
Social Security Tax
8
Q
Evaluates a business’ ability to pay interest expense
A
Times-Interest-Earned Ratio
9
Q
Agreement that guarantees a company’s product against defects
A
Warranty
