Net Income increases a corporation's total stockholders' equity.

A corporation can decide if an when to declare a dividend.

An entry recorded in a general journal will increase the account debited and decrease the account credited.

A general journal entry posted to Accounts Payable will also be posted to an accounts payable account.

In a computerized accounting system, transactions recorded on a general journal are posted at the end of the month.

Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government.

The larger the number of withholding allowances claimed, the larger the amount of income tax withheld.

Federal unemployment insurance laws require that employers and employees pay taxes for unemployment compensation.

The allowance method of accounting for uncollectible accounts does not comply with the generally accepted accounting principles.

A note provides a business with legal evidence of a debt in the event it becomes necessary to go to court to collect.

The accounting concept Neutrality is applied when the process of making accounting estimates is free from bias.

The expense of an uncollectible account should be recorded in the accounting period that the account becomes uncollectible.

The value of the insurance coverage used is recorded as a debit to Insurance Expense.

For a business using the periodic inventory method, the balance of Merchandise Inventory in the unadjusted trial balance represents the beginning balance plus all purchases of merchandise made in the fiscal period.

Cash and other assets expected to be exchanged for cash or consumed within a year are called liquid assets.

The marginal tax rate increases as the net income before federal income tax increases.

The Internal Revenue Service sets the amounts and rates of the tax brackets used to calculate federal income tax expense.

Every amount on a financial statement is accompanied by a related description.

A statement of stockholders' equity summarizes the changes in owners' equity during a fiscal period.

All the information required to prepare a statement of stockholders' equity is obtained from the income statement and the adjusted trial balance.

Income stocks typically have a higher dividend yield than growth stocks.

Quick assets include cash and merchandise inventory.

The dividend ratio is the most widely recognized measure of a corporation's financial performance.

A return of merchandise to the vendor results in a

At the end of the fiscal period, the balance of Dividends is closed to

Which of the following stockholders' equity accounts has a normal debit balance?

A business form used to record details affecting payments made to an employee is a(n)

Federal income tax is withheld from employee earnings

The withholding allowances of an employee affect

The payment of payroll taxes to the government is referred to as a

A total earnings subject to federal unemployment tax is referred to as

The source document for paying employee income tax and social security and medicare tax is

In general, employers are required to pay state unemployment taxes

The adjustment unique to merchandising businesses adjusts

Recording depreciation expenses is an application of the accounting concept

The total amount of depreciation expense that has been recorded since the purchase of a plant asset is called

The physical inventory is always conducted at the end of each

The operating revenue remaining after cost of merchandise sold has been deducted is

The income from operations is calculated by subtracting operating expenses from

Operating margin is also referred to as

The price-earnings ratio is an example of a

The ratio that gives the best indication of how effectively a business is earning a profit from its normal business operations is the

The debt ratio is an example of a

Gross margin is also referred to as