Unearned revenues are current liabilities.

Depreciation is higher in earlier years and income is lower in the later years when using straight-line versus accelerated methods.

The use of debt financing ensures an increase in return on equity.

Indenture refers to a bond’s legal contract; debenture refers to an unsecured bond.

The use of debt financing ensures an increase in return on equity.

A patent is an exclusive right granted to its owner to manufacture and sell a patented device or to use a process for 20 years.

An employee earned $4,600 in February working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 earned during each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The employee has $644 in federal income taxes withheld and has voluntary deductions for health insurance of $50 and contributes 10% of gross pay to a retirement plan each month. The employer pays the $200 remainder of the health insurance premium and an equal amount of contribution to the retirement fund. What is the amount of net pay for the employee for the month of February?

Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $20,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset’s book value on December 31, Year 2 will be:

When a company is obligated for sales taxes payable, it is reported as a(n):

Each employee records the number of withholding allowances claimed on the withholding allowance certificate that is filed with the employer, which is the Form W-4.