Current Liabilities:
Current liabilities are debt obligations that need to be paid within a period of one year or less. Current liabilities are not always paid within one year. If company follows operating cycle then the current liabilities are defined according to the operating cycle of the company rather than the length of the year.
Example: Notes Payable, Accounts Payable, Payroll Liabilities.
Payroll tax
The costs incurred by an employer to pay the employee for his labor, including other employee benefits, plus the payroll taxes the employer pays to the government, are called payroll tax.
To Provide: four items which are withheld from the employee payroll checks.
Current Liabilities:
Current liabilities are debt obligations that need to be paid within a period of one year or less. Current liabilities are not always paid within one year. If company follows operating cycle then the current liabilities are defined according to the operating cycle of the company rather than the length of the year.
Example: Notes Payable, Accounts Payable, Payroll Liabilities.
Payroll tax
The costs incurred by an employer to pay the employee for his labor, including other employee benefits, plus the payroll taxes the employer pays to the government, are called payroll tax.
To Provide: the deductions which are required by law and which are voluntary under payroll liabilities.
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Chapter 8 Solutions
Financial Accounting
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- Mercer Corp uses the FIFO (first in first out) method in its process costing system. The cutting department had $6,000 in the material cost in its beginning work in process inventory and $75,000 in material cost was added during the period. The equivalent units of production for the material for the period were 20,000. The cost per equivalent unit for materials would be: A) $1.30 B) $3.30 C) $3.75 D) $4.05arrow_forwardWhat was the direct labour cost on this job?arrow_forwardSolve this accounting problemarrow_forward
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