Question 1

A company must pay Form 941 taxes electronically if:

Accepted Answer

A)  they do business in multiple states. 
B)  they pay more than $2,500 in a given quarter. 
C)  they pay less than $2,500 in a given quarter. 
D)  The company would never have to pay electronically. 
A)  they do business in multiple states. 
B)  they pay more than $2,500 in a given quarter. 
C)  they pay less than $2,500 in a given quarter. 
D)  The company would never have to pay electronically.

Question 2

Which taxes are considered 941 taxes?

Accepted Answer

A)  FICA, FUTA, and SUTA 
B)  FICA and SIT 
C)  FICA, FIT, and Workers' Compensation 
D)  None of these answers is correct. 
A)  FICA, FUTA, and SUTA 
B)  FICA and SIT 
C)  FICA, FIT, and Workers' Compensation 
D)  None of these answers is correct.

Question 3

A deposit must be made when filing the W-2 form.

Accepted Answer

A) True 
 B)False

Question 4

The entry to record the payroll tax expense would include:

Accepted Answer

A)  a credit to Federal Income Taxes Payable. 
B)  a debit to Pre-paid Tax Expense. 
C)  a credit to FICA (OASDI and Medicare) Taxes Payable. 
D)  a credit to Wages Payable. 
A)  a credit to Federal Income Taxes Payable. 
B)  a debit to Pre-paid Tax Expense. 
C)  a credit to FICA (OASDI and Medicare) Taxes Payable. 
D)  a credit to Wages Payable.

Question 5

The payroll tax expense is recorded quarterly only.

Accepted Answer

A) True 
 B)False

Question 6

If an employer owes less than $2,500 for FICA (OASDI and Medicare) and FIT, they can submit:

Accepted Answer

A)  Form 941. 
B)  Form 940. 
C)  Form W-2. 
D)  Form W-3. 
A)  Form 941. 
B)  Form 940. 
C)  Form W-2. 
D)  Form W-3.

Question 7

Tax form 940 is filed annually.

Accepted Answer

A) True 
 B)False

Question 8

If Wages and Salaries Payable is debited, what account would most likely be credited?

Accepted Answer

A)  Cash 
B)  Pre-Paid Payroll Expense 
C)  Payroll Expense 
D)  SUTA Payable 
A)  Cash 
B)  Pre-Paid Payroll Expense 
C)  Payroll Expense 
D)  SUTA Payable

Question 9

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2)   Assume:
FICA-OASDI is 6.2% based on a limit of $128,400.
FICA-Medicare is 1.45%.
FUTA is .8% based on a limit of $7,000.
SUTA is 5.6% based on a limit of $7,000.
State income tax is 2.8%.
-Compute the employees' FICA-Medicare.

Accepted Answer

The answer of The following data applies to the July...

Question 10

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2)   Assume:
FICA-OASDI is 6.2% based on a limit of $128,400.
FICA-Medicare is 1.45%.
FUTA is .8% based on a limit of $7,000.
SUTA is 5.6% based on a limit of $7,000.
State income tax is 2.8%.
-Compute the total gross earnings.

Accepted Answer

The answer of The following data applies to the July...

Question 11

Ben's Mentoring had the following information for the pay period ending September 30:   Assume:
FICA-OASDI applied to the first $128,400 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings.
-Compute the total state income tax.

Accepted Answer

The answer of Ben's Mentoring had the following information for...

Question 12

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2)   Assume:
FICA-OASDI is 6.2% based on a limit of $128,400.
FICA-Medicare is 1.45%.
FUTA is .8% based on a limit of $7,000.
SUTA is 5.6% based on a limit of $7,000.
State income tax is 2.8%.
-Compute the total overtime earnings.

Accepted Answer

The answer of The following data applies to the July...

Question 13

Which of the following does NOT apply to both a W-2 and a W-3?

Accepted Answer

A)  Reports the total amount of wages, tips and compensation paid to the employee 
B)  Reports the total OASDI and Medicare taxes withheld 
C)  Sent to the Social Security Administration 
D)  Employees use both forms to prepare their personal tax returns. 
A)  Reports the total amount of wages, tips and compensation paid to the employee 
B)  Reports the total OASDI and Medicare taxes withheld 
C)  Sent to the Social Security Administration 
D)  Employees use both forms to prepare their personal tax returns.

Question 14

Which of the following statements is true?

Accepted Answer

A)  Payroll Tax Expense increases on the debit side of the account. 
B)  FICA-OASDI Payable is a Liability. 
C)  Payroll Tax Expense has a debit normal balance. 
D)  All of these answers are correct. 
A)  Payroll Tax Expense increases on the debit side of the account. 
B)  FICA-OASDI Payable is a Liability. 
C)  Payroll Tax Expense has a debit normal balance. 
D)  All of these answers are correct.

Question 15

Businesses will make their payroll tax deposits based on payroll taxes collected.

Accepted Answer

A) True 
 B)False

Question 16

Why would a company use a separate payroll cash account?

Accepted Answer

A)  Provides for better internal control 
B)  Ease of account reconciliation 
C)  Determine whether or not the employee has cashed their check 
D)  All of the above are correct. 
A)  Provides for better internal control 
B)  Ease of account reconciliation 
C)  Determine whether or not the employee has cashed their check 
D)  All of the above are correct.

Question 17

Which form contains information about gross earnings and is given to the employee by January 31?

Accepted Answer

A)  Form W-2 
B)  Form W-3 
C)  Form 941 
D)  Form W-4E 
A)  Form W-2 
B)  Form W-3 
C)  Form 941 
D)  Form W-4E

Question 18

Why are the employee deductions recorded as payables on the employer's books?

Accepted Answer

The employer collects the amounts from t

Question 19

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2)   Assume:
FICA-OASDI is 6.2% based on a limit of $128,400.
FICA-Medicare is 1.45%.
FUTA is .8% based on a limit of $7,000.
SUTA is 5.6% based on a limit of $7,000.
State income tax is 2.8%.
-Compute the total state income tax.

Accepted Answer

The answer of The following data applies to the July...

Question 20

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

A company must pay Form 941 taxes electronically if:

Which taxes are considered 941 taxes?

A deposit must be made when filing the W-2 form.

The entry to record the payroll tax expense would include:

The payroll tax expense is recorded quarterly only.

If an employer owes less than $2,500 for FICA (OASDI and Medicare) and FIT, they can submit:

Tax form 940 is filed annually.

If Wages and Salaries Payable is debited, what account would most likely be credited?

Which of the following does NOT apply to both a W-2 and a W-3?

Which of the following statements is true?

Businesses will make their payroll tax deposits based on payroll taxes collected.

Why would a company use a separate payroll cash account?

Which form contains information about gross earnings and is given to the employee by January 31?

Why are the employee deductions recorded as payables on the employer's books?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Exam 8: Paying, Recording, and Reporting Payroll and Payroll Taxes:

A company must pay Form 941 taxes electronically if:

Which taxes are considered 941 taxes?

A deposit must be made when filing the W-2 form.

The entry to record the payroll tax expense would include:

The payroll tax expense is recorded quarterly only.

If an employer owes less than $2,500 for FICA (OASDI and Medicare) and FIT, they can submit:

Tax form 940 is filed annually.

If Wages and Salaries Payable is debited, what account would most likely be credited?

Which of the following does NOT apply to both a W-2 and a W-3?

Which of the following statements is true?

Businesses will make their payroll tax deposits based on payroll taxes collected.

Why would a company use a separate payroll cash account?

Which form contains information about gross earnings and is given to the employee by January 31?

Why are the employee deductions recorded as payables on the employer's books?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters