3. Interest expense is reported as

current liabilities

3.Interest expense is reported as

a. other expense on the balance sheet.

b. other expense on the income statement.

c. other revenue on the balance sheet.

d. current liabilities on the income statement.

4.All of the following are other deductions that employees may choose to have deducted from their gross payexcept

a. life insurance.

b. FICA.

c. dental insurance.

d. retirement savings.

Solutions

Expert Solution

3.Interest expense is reported as

Answer: b. other expense on the income statement.

As it is a non-operating expense which is to be recorded in the income statement.

4.All of the following are other deductions that employees may choose to have deducted from their gross pay except

Answer b. FICA.

FICA is the short form of The Federal Insurance Contributions Act tax which is a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare. It is a Tax hence cannot be claimed as a deduction.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

On the income statement of a merchandising company, interest income and interest expense are reported: Select...

On the income statement of a merchandising company, interest income and interest expense are reported: Select one: A. As part of cost of goods sold B. As separate items of other income and expense below the net operating income or loss C. By showing interest income as additional sales revenue and interest expense as an operating expense D. By offsetting interest income and interest expense and showing the excess as an operating revenue or expense

Broward Manufacturing recently reported the followinginformation:Net income$414,000ROA8%Interest expense$124,200Accounts...

Broward Manufacturing recently reported the following information:Net income$414,000ROA8%Interest expense$124,200Accounts payable and accruals$950,000Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places.BEP% =ROE% =ROIC%...

Broward Manufacturing recently reported the followinginformation:Net income$234,000ROA8%Interest expense$91,260Accounts...

Broward Manufacturing recently reported the following information:Net income$234,000ROA8%Interest expense$91,260Accounts payable and accruals$1,050,000Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places.BEP: %ROE: %ROIC: %

Broward Manufacturing recently reported the followinginformation:Net income$738,000ROA10%Interest expense$243,540Accounts...

Broward Manufacturing recently reported the following information:Net income$738,000ROA10%Interest expense$243,540Accounts payable and accruals$1,050,000Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places.BEP: %ROE: %ROIC: %

QUESTION 56 In performing analytical procedure over debt interest, the auditor finds company reported interest expense...

QUESTION 56 In performing analytical procedure over debt interest, the auditor finds company reported interest expense is materially higher than the auditor’s expectations. The most likely conclusion for the auditor would be that the company has not a. recorded interest bearing debt in its records. b. recorded paid or accrued all interest expense. c. properly accounted for the discount of bonds payable account. d. properly recorded interest income. 2 points QUESTION 57 Which of the following balance-related audit objectives...

Compute the net interest expense to be reported for this note and related swap transactions as of December 31, 2018.

Question:(Cash Flow Hedge) On January 2, 2017, Parton Company issues a 5-year, $10,000,000 note at LIBOR, with interest paid annually. The variable rate is reset at the end of each year. The LIBOR rate for the first year is 5.8%. Parton Company decides it prefers fixed-rate financing and wants to lock in a rate of 6%. As a result, Parton enters into an interest rate swap to pay 6% fixed and receive LIBOR based on $10 million. The variable...

is accured interest ( interest payable or interest expense?

we learned about interest expense on notes payable. Interest expense is an actual expense. we learned...

we learned about interest expense on notes payable. Interest expense is an actual expense. we learned about bad debt expense. Bad debt expense is an estimated expense. 1. What is the difference between an actual expense and an estimated expense? 2. Why do we have to record bad debt expense, which is an estimated expense?

1.If profit after tax and interest is $400,000; interest expense is $50,000 and taxation expense is...

1.If profit after tax and interest is $400,000; interest expense is $50,000 and taxation expense is $84,000; profit before interest and tax is: 2.If the beginning balance of equity is $82,000; the ending balance is $37,000; and the loss for the period is $33,000; how much did the owner withdraw during the period for personal use? 3.The balance sheet usually reports the entity's financial position for both the current period and the previous period. This information is known as:

Cadux Candy Company’s income statement for the year ended December 31, 2021, reported interest expense of $2 million and income tax expense of $12 million.

Cadux Candy Company’s income statement for the year ended December 31, 2021, reported interest expense of $2 million and income tax expense of $12 million. Current assets listed in its balance sheet include cash, accounts receivable, and inventory. Property, plant, and equipment is the company’s only noncurrent asset. Financial ratios for 2021 are listed below. Profitability and turnover ratios with balance sheet items in the denominator were calculated using year-end balances rather than averages. Debt to equity ratio ......................................1.0Current ratio ..................................................2.0Acid-test ratio ................................................1.0Times interest earned ratio...

Subjects