CH11 - Current Liabilities and Payroll Flashcards Preview

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Flashcards in CH11 - Current Liabilities and Payroll Deck (12):
1

Liabilities that may arise from past transactions if certain events occur in the future

Contingent Liabilities

2

A company's ability to pay its current liabilities

Current Position Analysis

3

A pension plan that promises employees a fixed annual pension benefit at retirement

Defined Benefit Plan

4

A detailed record of each employee's earnings

Employee's Earnings Record

5

Federal Insurance Contributions Act tax used to finance federal programs for old-age and disability benefits

FICA Tax

6

Benefits provided to employees in addition to wages and salaries

Fringe Benefits

7

The total earnings of an employee

Gross Pay

8

Gross pay less payroll deductions

Net Pay

9

A multicolumn report used to assemble and summarize payroll data at the end of each payroll period

Payroll Register

10

A cash payment to retired employees

Pension

11

Cash and other current assets that can be quickly converted to cash, such as marketable securities and receivables

Quick Assets

12

= Quick Assets / Current Liabilities

Quick Ratio