| A | B |
|---|
| Contingent Liability | Potential liability that depends on a future event arising from a past transaction. (p. 390) |
| Current Liabilities | Obligations due within a year or the company's operating cycle, whichever is longer; paid using current assets or by creating other current liabilities. (p. 376) |
| Current Portion of Long-Term Debt | Portion of long-term debt due within one year or the operating cycle, whichever is longer; reported under current liabilities. (p. 391) |
| Deferred Income Tax Liability | Corporation income taxes that are deferred until future years because of temporary differences between GAAP and tax rules. (p. 389) |
| Discount on Note Payable | difference between the face value of a note payable and the amount borrowed; the interest to be paid on the note over its life. (p. 380) |
| Employee Benefits | Additional compensation paid to or on behalf of employees, cush as premiums for medical, dental, life, disability insurance, and contributions to pension plans. (p. 387) |
| Employee Earnings Report | Record of an employee's net pay, gross pay, deductions, and year-to-date information. (p. 399) |
| Estimated Liability | Obligation of an uncertain amount that can be reasonably estimated. (p. 386) |
| Federal Depository Bank | Bank authorized to accept deposits of amounts payable to the federal government. (p. 396) |
| Federal Insurance Contributions Act (FICA) Taxes | Taxes assessed on both employers and employees; for Social Security and Medicare programs. (p. 384) |
| Federal Unemployment Taxes (FUTA) | Payroll taxes on employers assessed by the federal government to support its unemployment insurance program. (p. 385) |
| Form 940 | IRS form used to report an employer's federal unemployment taxes (FUTA) on an annual basis. (p. 396) |
| Form 941 | IRS form filed to report FICA taxes owed and remitted. (p. 396) |
| Form W-2 | Annual report by an employer to each employee showing the employee's wages subject to FICA and federal income taxes along with amounts withheld. (p. 397) |
| Form W-4 | A withholding allowance certificate, filed with the employer, identifying the number of withholding allowances claimed. (p. 400) |
| Gross Pay | Total compensation earned by an employee. (p. 383) |
| Known Liabilities | Obligations of a company with little uncertainty; set by agreement, contracts, or laws; also called definitely determinable liabilities. (p. 378) |
| Long-Term Liabilities | Obligations not requiring payment within one year or the operating cycle, whichever is longer. (p. 377) |
| Net Pay | Gross pay less all deductions; also called take-home pay. (p. 383) |
| Noninterest-Bearing Note | Note with no stated rate of interest; interest is included in the face value of the note. (p. 381) |
| Payroll Deductions | amounts withheld from an employee's gross pay; also called withholdings. (p. 383) |
| Payroll Register | Record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay, and deductions. (p. 398) |
| Short-Term Note Payable | Current obligation in the form of a written promissory note. (p. 379) |
| State Unemployment Taxes (SUTA) | State payroll taxes on employers to support itsunemployment programs. (p. 385) |
| Times Interest Earned | Ratio of income before interest expense (and any income taxes) divided by interest expense; reflects risk of interest commitments when income varies. (p. 393) |
| Warranty | Agreement that obligates the seller to correct or replace a product or service when it fails to perform properly within a specified period. (p. 387) |
