Flashcard- Chapter 11

Front

When is a contingent liability recorded and disclosed by debiting an expense and crediting a liability?

Back

If a contingent liability is probable and the amount can be reasonably estimated

Front

What happens to a contingent liability that is probable but not estimable?

Back

It is disclosed in the notes to the financial statements.

Front

How is a contingent liability that is reasonably possible?

Back

It is disclosed in the notes to the financial statements.

Front

What is the treatment for a contingent liability whose occurrence is remote?

Back

No disclosure needs to be made in the notes to the financial statements.

Front

How is working capital calculated?

Back

current assets - current liabilities.

Front

What is the formula for current ratios?

Back

current assets / current liabilities

Front

How are quick ratios calculated?

Back

quick assets / current liabilities.

Front

What taxes are under employees' responsibilities?

Back

FICA tax, Federal withholding tax.

Front

What taxes are under employers' responsibilities?

Back

FICA tax, SUTA tax, FUTA tax.

Front

What does FICA tax include?

Back

Social security tax, Medicare tax.