Question 1

An employer will use the payroll register to keep track of an employee's accumulated wages.

Accepted Answer

A) True 
 B)False  False

Question 2

Every state allows employers to make e-payment options as a condition of employment.

Accepted Answer

A) True 
 B)False  False

Question 3

Union Dues Payable is a liability account credited with the deductions made from union members' wages for their union dues.

Accepted Answer

A) True 
 B)False  True

Question 4

When withheld union dues are turned over to the union by the employer, a journal entry is made debiting the liability account and crediting the cash account.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following items would require an adjusting entry at the end of each accounting period?

Accepted Answer

A)  Garnishment for child support payments 
B)  Withholdings for a 401(k) plan 
C)  Vacation pay earned by employees 
D)  Union dues withheld 
E)  None of the above 
A)  Garnishment for child support payments 
B)  Withholdings for a 401(k) plan 
C)  Vacation pay earned by employees 
D)  Union dues withheld 
E)  None of the above

Question 6

The payroll taxes account is an expense account that is debited for the FICA, FUTA, and SUTA taxes on the employer.

Accepted Answer

A) True 
 B)False

Question 7

Each payday, the total of net pays that the employer incurs is the wage expense that must be debited.

Accepted Answer

A) True 
 B)False

Question 8

A debit to the employees FIT payable account removes the liability for the amount of federal income taxes withheld from employees' wages.

Accepted Answer

A) True 
 B)False

Question 9

The entry to deposit FICA taxes and federal income taxes withheld involves all of the following accounts except:

Accepted Answer

A)  Payroll Taxes. 
B)  FICA Taxes Payable-OASDI. 
C)  FICA Taxes Payable-HI. 
D)  Employees FIT Payable. 
E)  Cash. 
A)  Payroll Taxes. 
B)  FICA Taxes Payable-OASDI. 
C)  FICA Taxes Payable-HI. 
D)  Employees FIT Payable. 
E)  Cash.

Question 10

FIT Payable is a liability account used to record employees' withheld federal income tax and also the employer's match of that tax.

Accepted Answer

A) True 
 B)False

Question 11

If wages are paid weekly, postings to the employee's earnings record would be done once a month.

Accepted Answer

A) True 
 B)False

Question 12

In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by:

Accepted Answer

A)  collecting the timesheets for the days accrued. 
B)  using the same amount as the prior month's adjustment. 
C)  using the wages of the salaried workers only. 
D)  a percentage of the previous week's gross payroll. 
E)  a percentage of the previous week's net payroll. 
A)  collecting the timesheets for the days accrued. 
B)  using the same amount as the prior month's adjustment. 
C)  using the wages of the salaried workers only. 
D)  a percentage of the previous week's gross payroll. 
E)  a percentage of the previous week's net payroll.

Question 13

Which of the following accounts is an expense account in which an employer records the FICA, FUTA, and SUTA taxes?

Accepted Answer

A)  Wages Expense 
B)  Payroll Taxes 
C)  SUTA Taxes Payable 
D)  Salaries Payable 
E)  None of the above 
A)  Wages Expense 
B)  Payroll Taxes 
C)  SUTA Taxes Payable 
D)  Salaries Payable 
E)  None of the above

Question 14

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

Accepted Answer

A) True 
 B)False

Question 15

Amounts withheld from employees' wages for health insurance are credited to a liability account.

Accepted Answer

A) True 
 B)False

Question 16

The FICA taxes on the employer represent both business expenses and liabilities of the employer.

Accepted Answer

A) True 
 B)False

Question 17

At the time that the entry is made to record the employer's payroll taxes, the SUTA tax is recorded at the net amount (0.6%).

Accepted Answer

A) True 
 B)False

Question 18

Deductions from gross pay in the payroll register are reflected on the credit side of the journal entry to record the payroll.

Accepted Answer

A) True 
 B)False

Question 19

The employee's earnings record provides information for each of the following except:

Accepted Answer

A)  completing Forms W-2. 
B)  completing the journal entry to record the payroll. 
C)  determining when the accumulated wages of an employee reach cutoff levels. 
D)  preparing reports required by state unemployment compensation laws. 
E)  preparing the payroll register. 
A)  completing Forms W-2. 
B)  completing the journal entry to record the payroll. 
C)  determining when the accumulated wages of an employee reach cutoff levels. 
D)  preparing reports required by state unemployment compensation laws. 
E)  preparing the payroll register.

Question 20

Once the journal entry for the payroll is complete, the information is posted to the appropriate general ledger accounts.

Accepted Answer

A) True 
 B)False

An employer will use the payroll register to keep track of an employee's accumulated wages.

Every state allows employers to make e-payment options as a condition of employment.

Union Dues Payable is a liability account credited with the deductions made from union members' wages for their union dues.

When withheld union dues are turned over to the union by the employer, a journal entry is made debiting the liability account and crediting the cash account.

Which of the following items would require an adjusting entry at the end of each accounting period?

The payroll taxes account is an expense account that is debited for the FICA, FUTA, and SUTA taxes on the employer.

Each payday, the total of net pays that the employer incurs is the wage expense that must be debited.

A debit to the employees FIT payable account removes the liability for the amount of federal income taxes withheld from employees' wages.

The entry to deposit FICA taxes and federal income taxes withheld involves all of the following accounts except:

FIT Payable is a liability account used to record employees' withheld federal income tax and also the employer's match of that tax.

If wages are paid weekly, postings to the employee's earnings record would be done once a month.

In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by:

Which of the following accounts is an expense account in which an employer records the FICA, FUTA, and SUTA taxes?

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

Amounts withheld from employees' wages for health insurance are credited to a liability account.

The FICA taxes on the employer represent both business expenses and liabilities of the employer.

At the time that the entry is made to record the employer's payroll taxes, the SUTA tax is recorded at the net amount (0.6%).

Deductions from gross pay in the payroll register are reflected on the credit side of the journal entry to record the payroll.

The employee's earnings record provides information for each of the following except:

Once the journal entry for the payroll is complete, the information is posted to the appropriate general ledger accounts.

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Unemployment Compensation Taxes

Filters

Exam 6: Analyzing and Journalizing Payroll Transactions

An employer will use the payroll register to keep track of an employee's accumulated wages.

Every state allows employers to make e-payment options as a condition of employment.

Union Dues Payable is a liability account credited with the deductions made from union members' wages for their union dues.

When withheld union dues are turned over to the union by the employer, a journal entry is made debiting the liability account and crediting the cash account.

Which of the following items would require an adjusting entry at the end of each accounting period?

The payroll taxes account is an expense account that is debited for the FICA, FUTA, and SUTA taxes on the employer.

Each payday, the total of net pays that the employer incurs is the wage expense that must be debited.

A debit to the employees FIT payable account removes the liability for the amount of federal income taxes withheld from employees' wages.

The entry to deposit FICA taxes and federal income taxes withheld involves all of the following accounts except:

FIT Payable is a liability account used to record employees' withheld federal income tax and also the employer's match of that tax.

If wages are paid weekly, postings to the employee's earnings record would be done once a month.

In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by:

Which of the following accounts is an expense account in which an employer records the FICA, FUTA, and SUTA taxes?

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

Amounts withheld from employees' wages for health insurance are credited to a liability account.

The FICA taxes on the employer represent both business expenses and liabilities of the employer.

At the time that the entry is made to record the employer's payroll taxes, the SUTA tax is recorded at the net amount (0.6%).

Deductions from gross pay in the payroll register are reflected on the credit side of the journal entry to record the payroll.

The employee's earnings record provides information for each of the following except:

Once the journal entry for the payroll is complete, the information is posted to the appropriate general ledger accounts.

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Unemployment Compensation Taxes

Filters