Accounting Chapter 11
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Created by:
CTeachout789 on April 26, 2011
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McGraw Hill Fundamental Accounting Principles
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27 terms
Terms | Definitions |
|---|---|
 Contingent Liability | Obligation to make a future payment if, and only if, an uncertain future event occurs. |
| Current Liabilities | Obligations due to be paid or settled within one year or the company's operating cycle, whichever is longer. |
| Current Portion of Long-Term Debt | Portion of long-term debt due within one year or the operating cycle, whichever is longer; reported under current liabilities. |
| Deferred Income Tax Liability | Corporation income taxes that are deferred until future years because of temporary differences between GAAP and tax rules. |
| Employee Benefits | Additional compensation paid to or on behafe of employees, such as premiums for medical, dental, life, and disability insurance, and contributions to pension plans. |
| Employee Earnings Report | Record of an employee's net pay, gross pay, deductions, and year-to-date payroll information. |
| Estimated Liability | Obligation of an uncertain amount that can be reasonably estimated. |
| Federal Depository Bank | Bank authorized to accept deposits of amounts payable to the federal government. |
| Federal Insurance Contributions Act (FICA) Taxes | Taxes assessed on both employers and employees; for Social Security and Medicare programs. |
| Federal Unemployment Taxes (FUTA) | Payroll taxes on employers assessed by the federal government to support its unemployment insurance program. |
| Form 940 | IRS form used to report an employer's federal unemployment taxes (FUTA) on an annual filing basis. |
| Form 941 | IRS form filed to report FICA taxes owed and remitted. |
| Form W-2 | Annual report by an employer to each employee showing the employee's wages subject to FICA and federal income taxes along with amounts withheld. |
| Form W-4 | Withholding allowance certificate, filed with the employer, identifying the number of withholding allowances claimed. |
| Gross Pay | Total compensation earned by an employee. |
| Known Liabilities | Obligations of a company with little uncertainty; set by agreements, contracts, or laws; also called "definitely determinable liabilities". |
| Long-Term Liabilities | Obligations not due to be paid within one year or the operating cycle, whichever is longer. |
| Merit Rating | Rating assigned to an employer by a state based on the employer's record of employment. |
| Net Pay | Gross pay less all deductions; also called "take-home pay". |
| Payroll Bank Account | Bank account used solely for paying employees; each pay period an amount equal to the total employees' net pay is deposited in it and the payroll checks are drawn on it. |
| Payroll Deductions | Amounts withheld from an employees gross pay; also called "withholdings". |
| Payroll Register | Record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay, and deductions. |
| Short-Term Note Payable | Current obligation in the form of a written promissory note. |
| State Unemployment Taxes (SUTA) | State payroll taxes on employers to support its unemployment programs. |
| Time Interest Earned | Ratio of income before interest expense (and any income taxes) divided by interest expense; reflects risk of covering interest commitments when income varies. |
| Wage Bracket Withholding Table | Table of the amounts of income tax withheld from employees' wages. |
| Warranty | Agreement that obligations the seller to correct or replace a product or service within a specified period. |
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