Question

____1.    A 90-day note dated March 23 has a maturity date of June 21.

____2.    Federal unemployment (FUTA) tax is withheld from each employee's wages.

____3. No gain or loss is recorded when a plant asset is sold for

        an amount equal to its book value.

____4. Over the life of a depreciable asset, its recorded cost    decreases, the related accumulated depreciation increases, and its book value remains constant

____5.    A W-2 form is the withholding allowance certificate for an employee with two dependents.

____6.    In most situations, the total Social Security taxes levied on employers will exceed the amount of Social Security taxes withheld from employees.

____7.    The direct write-off method of accounting for un-collectable accounts mismatches revenue and expenses and overstates assets.

____8.    If the allowance method of recording un-collectable accounts is used, the entry to write-off an account does not affect net income or total assets.

____9.    If an uninsured asset is destroyed by fire, the firm suffers a loss measured by the asset's estimated salvage value

true or false questions

Answer 1

TRUE	____1.    A 90-day note dated March 23 has a maturity date of June 21.
FALSE	____2.    Federal unemployment (FUTA) tax is withheld from each employee's wages.
	FUTA is levied only on employers. It is not deducted from the employees' earnings. The purpose of this tax is to raise funds to administer the combined federal/state unemployment compensation program.
TRUE	____3. No gain or loss is recorded when a plant asset is sold for
	an amount equal to its book value.
	Book Value means Total cost of Asset Less Depreciation. If the asset is sold at Book value there will be no profit or loss.
FALSE	____4. Over the life of a depreciable asset, its recorded cost    decreases, the related accumulated depreciation increases, and its book value remains constant
	Recorded costs remain the same throughout the life of the asset. Accumulated depreciation increases and book value decreases over the life.
FALSE	____5.    A W-2 form is the withholding allowance certificate for an employee with two dependents.
	Form W-2 (officially, the "Wage and Tax Statement") is an Internal Revenue Service (IRS) tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship.
FALSE	____6.    In most situations, the total Social Security taxes levied on employers will exceed the amount of Social Security taxes withheld from employees.
	The Tax rate is same for both employer and employees.
TRUE	____7.    The direct write-off method of accounting for un-collectable accounts mismatches revenue and expenses and overstates assets.
FALSE	____8.    If the allowance method of recording un-collectable accounts is used, the entry to write-off an account does not affect net income or total assets.
	If the allowance method of recording un-collectable accounts is used, the entry to write-off an account does not affect net income but it will decrease the total assets.
FALSE	____9.    If an uninsured asset is destroyed by fire, the firm suffers a loss measured by the asset's estimated salvage value
	If an uninsured asset is destroyed by fire, the firm suffers a loss measured by the asset's book value as on the date of fire.