True

False

Matching Principle

Revenue Recognition Principle

Full Disclosure Principle

Conservatism Principle

State Income Tax

Federal Income Tax

Charitable Contributions

FICA Tax

True

False

It is an actual liability that is difficult to estimate.

It is a potential liability that depends on a future event.

It is an actual liability that depends on a past event.

It is a liability resulting from a lawsuit settled in court.

Fictitious persons cashing paychecks

Expenses being recorded as assets in order to change earnings

Contracts being awarded to relatives of employees

Theft of inventory by staff

Keeping computerized records of payroll data

Requiring photo IDs for employees picking up their paychecks

Serial numbering of paychecks

Having employees clock in and out of work

State Unemployment Tax (SUTA)

FICA

Employee Income Tax

Federal Unemployment Tax (FUTA)

True

False

A debit to Estimated Warranty Payable

A credit to Warranty Expense

A credit to Inventory

A credit to Estimated Warranty Payable