Answer:
C. The Fed should target the money supply, not the interest rate, and that it should adopt the monetary growth rule.
Answer:
First quarter: <em>amount </em>$0 <em>date: </em>-
Second quarter: <em>amount </em>$606.60 <em>date:</em> July 31
Third quarter: <em>amount </em>$0 <em>date: </em>-
Fourth quarter: <em>amount </em>$537 <em>date:</em> January 31
Explanation:
As per IRS, in part 5 of Form 940, Peterson Company will report FUTA tax liability by Quarter only if Total FUTA Tax after Adjustments is more than $500. So, Peterson Company is not required to pay FUTA tax until FUTA tax liability is more than $500 and if in any particular quarter the FUTA tax liability is less than $500 then the cumulative amount will be taken with the next quarter until the FUTA tax liability reaches more than $500. So first quarter will add up with quarter 2 and the FUTA tax liability will be $606.60 & third quarter will add up with fourth quarter and the FUTA tax liability will be $537.
As far as due dates are concerned, the due date of the first quarter is the month after the end of first quarter. So, for the quarter from January to March the Due Date will be April 30, from April to June the Due Date will be July 31, from July to September the Due Date will be October 31, from October to December the Due Date will be January 31.
Answer:
Knowledge Check 01 Which of the following is deducted from the total selling and administrative expense budget to determine the cash disbursements for selling and administrative expense budget?
Depreciation expense is a non cash charge since there is no cash outflow associated to it. The same applies for amortization expense, asset impairments, stock based compensation and asset depletion (similar to depreciation but used by extracting companies like mines and oil companies).
Knowledge Check 02 A company determines that the number of units sold is the cost driver for its variable selling and administrative expense budget. The product of its variable selling and administrative rate and budgeted unit sales will be ________.
- total budgeted variable selling and administrative expenses
Since we are dealing with budgets, any calculation is also a budget or forecast. We are calculating here the total budgeted variable selling and administrative expense since we are multiplying the predetermined variable S&A per unit x budgeted units.
