Questions from College Accounting


Q: What is the normal balance of cost of goods sold?

What is the normal balance of cost of goods sold?

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Q: Employer A has a FUTA tax liability of $67.49

Employer A has a FUTA tax liability of $67.49 on March 31 of the current year. When does the employer have to make the deposit for this liability?

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Q: How are discounts recorded in a perpetual system?

How are discounts recorded in a perpetual system?

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Q: What is the normal balance of Purchases Discount?

What is the normal balance of Purchases Discount?

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Q: Happy Carpet Cleaning, Inc., collects FIT, OASDI, and

Happy Carpet Cleaning, Inc., collects FIT, OASDI, and Medicare from its employees by withholding these taxes from its employees’ pay. However, Happy does not pay these amounts to the federal governmen...

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Q: Explain the difference between Paid-In Capital and retained earnings.

Explain the difference between Paid-In Capital and retained earnings.

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Q: What is the maximum number of shares a company may legally issue

What is the maximum number of shares a company may legally issue?

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Q: What does preemptive right mean?

What does preemptive right mean?

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Q: Preferred stock can never be cumulative and nonparticipating. True or false

Preferred stock can never be cumulative and nonparticipating. True or false? Support your answer.

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Q: What is the normal balance and the category of the account Discount

What is the normal balance and the category of the account Discount on Common Stock?

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