| Question |
Answer |
| Bonus |
Compensation to management and other personnel, based on factors such as increased sales or the amount of net income. |
| Contingent Liability |
A potential liability that may become an actual liability in the future. |
| Current Ratio |
A measure of a company's liquidity; computed as current assets divided by current liabilities. |
| Employee Earnings Record |
A cumulative record of each employee's gross earnings, deductions, and net pay during the year. |
| Federal Unemployment Taxes |
Taxes imposed on the employer by the federal government that provide benefits for a limited time period to employees who lose their jobs. |
| Fees |
payments made for the services of professionals. |
| FICA Taxes |
Taxes designed to provide workers with supplemental retirement, employment disability, and medical benefits. |
| Full-Disclosure Principle |
Requires that companies disclose all circumstances and events that would make a difference to financial statement users. |
| Gross Earnings |
Total compensation earned by an employee. |
| Net Pay |
Gross earnings less payroll deductions. |
| Notes Payable |
Obligations in the form of written promissory notes. |
| Payroll Deductions |
Deductions from gross earnings to determine the amount of a paycheck. |
| Payroll Register |
A payroll record that accumulates the gross earnings, deductions, and net pay by employee for each pay period. |
| Salaries |
Employee pay based on a fixed amount rather than an hourly rate. |
| Statement of Earnings |
A document attached to a paycheck that indicates the employee's gross earnings, payroll deductions, and net pay. |
| State Unemployment Taxes |
Taxes imposed on the employer by states that provide benefits to employees who lose their jobs. |
| Wage and Tax Statement Form (Form W-2) |
A form showing gross earnings, FICA taxes withheld, and income taxes withheld, prepared annually by an employer for each employee. |
| Wages |
Amounts paid to employees based on a rate per hour or on a piece-work basis. |
| Working Capital |
A measure of a company's liquidity; computed as current assets minus current liabilities. |
| Pension Plan |
An agreement whereby an employer provides benefits to employees after they retire. |
| Post-Retirement Benefits |
Payments by employers to retired employees for health care, life insurance, and pensions. |
Kelci Patton
on 2009-05-08
Ch.18 LTI-MA 509
