Question

Which of the following is not a current liability? Sales tax payable; Payroll taxes payable; c. Unearned revenues; D. Allowance for doubtful accounts. B. Which of the following is not a current liability? Discount on Bonds Payable due in 7 years; Wages Payable; Estimated Warranty Payable for items sold with a one year warranty: Out of court litigation settlement liability due to be paid next month. B. Page 2 of 6

Answer 1

Ans 5(D)	Allowance for doubtful accounts is not a current liability, but a contra assets,that nets against total receivable.
	List of Current Liabilities:
	Accounts Payable
	Sales Tax Payable
	Payroll taxes Payable
	Short Term loan Payable
	Unearned Revenue
	Accrued Expenses Payable
	Dividend Payable
Ans 6(A)	Discount on Bonds Payable due in 7 years is not a current liability.
	Current Liabilities are those liabilities which are short term liability & settled within one year.
	Wages Payable,Estimated Warranty payable, Out of court litigation settlement liability due to be paid next month are all current liability.
Ans 7(D )	Federal Income taxes withheld from employee pay checks is not a payroll tax expense to the employer.
	Federal Income tax is a tax levied by the United State Internal Revenue service from the employee earnings.
	Payroll tax expense of the employer includes:-
	Employer portion of social security tax
	Employer portion of Medicare tax
	State Unemployment Tax
	Federal Unemployment tax
Ans 8(B)	Federal Unemployment Tax (FUTA) are an employer paid tax. FUTA tax is not withheld from employees Gross Pay.
	Medicare tax,Social security tax and Federal Income taxes are all withheld from employees pay checks.