Question 1

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 401k) 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 401k) plan 
C) Vacation pay earned by employees 
D) Union dues withheld 
E) None of the above

Question 2

The adjusting entry to record the accrued vacation pay at the end of an accounting period includes credits to the tax withholding liability accounts.

Accepted Answer

A) True 
 B)False

Question 3

The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA OASDI and HI), FUTA, and SUTA taxes.

Accepted Answer

A) True 
 B)False

Question 4

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 5

In order to prepare Forms W-2, an employer would utilize the employee's earnings record.

Accepted Answer

A) True 
 B)False

Question 6

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The garnishment that takes priority over all others is :

Accepted Answer

A) a federal tax levy 
B) a government student loan 
C) a creditor garnishment 
D) an administrative wage garnishment 
E) a child support order 
A) a federal tax levy 
B) a government student loan 
C) a creditor garnishment 
D) an administrative wage garnishment 
E) a child support order

Question 10

The entry made at the end of the accounting period to record wages incurred but unpaid is:

Accepted Answer

A) Wages Expense Wages Payable 
B) Wages Expense FICA Taxes Payable-OASDI FICA Taxes Payable-HI
FIT Payable Wages Payable 
C) Wages Payable Cash 
D) Wages Expense Cash 
E) Wages Expense Payroll Taxes Wages Payroll 
A) Wages Expense Wages Payable 
B) Wages Expense FICA Taxes Payable-OASDI FICA Taxes Payable-HI
FIT Payable Wages Payable 
C) Wages Payable Cash 
D) Wages Expense Cash 
E) Wages Expense Payroll Taxes Wages Payroll

Question 11

FICA Taxes Payable-OASDI is a liability account debited for the employer's portion of the FICA tax.

Accepted Answer

A) True 
 B)False

Question 12

Tips received by employees in excess of tip credit amount are not included as disposable earnings subject to garnishment

Accepted Answer

A) True 
 B)False

Question 13

When recording the deposit of FUTA taxes owed, the proper entry is:

Accepted Answer

A) FUTA Tax Expense Cash 
B) Payroll Taxes Cash 
C) Payroll Taxes FUTA Taxes Payable 
D) FUTA Taxes Payable Cash 
E) FUTA Tax Expense FUTA Taxes Payable 
A) FUTA Tax Expense Cash 
B) Payroll Taxes Cash 
C) Payroll Taxes FUTA Taxes Payable 
D) FUTA Taxes Payable Cash 
E) FUTA Tax Expense FUTA Taxes Payable

Question 14

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 15

Since the FUTA tax is a social security tax, it can be charged to the same expense account as the other payroll taxes on the employer, the payroll taxes account.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

An employee's marital status and number of withholding allowances never appear on the payroll register.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Since vacation time is paid when used, there is no need to accrue this time in a liability account at the end of each accounting period.

Accepted Answer

A) True 
 B)False

Question 20

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

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

The adjusting entry to record the accrued vacation pay at the end of an accounting period includes credits to the tax withholding liability accounts.

The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA OASDI and HI), FUTA, and SUTA taxes.

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

In order to prepare Forms W-2, an employer would utilize the employee's earnings record.

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

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

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

The garnishment that takes priority over all others is :

The entry made at the end of the accounting period to record wages incurred but unpaid is:

FICA Taxes Payable-OASDI is a liability account debited for the employer's portion of the FICA tax.

Tips received by employees in excess of tip credit amount are not included as disposable earnings subject to garnishment

When recording the deposit of FUTA taxes owed, the proper entry is:

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.

Since the FUTA tax is a social security tax, it can be charged to the same expense account as the other payroll taxes on the employer, the payroll taxes account.

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

An employee's marital status and number of withholding allowances never appear on the payroll register.

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

Since vacation time is paid when used, there is no need to accrue this time in a liability account at the end of each accounting period.

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

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

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

The adjusting entry to record the accrued vacation pay at the end of an accounting period includes credits to the tax withholding liability accounts.

The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA OASDI and HI), FUTA, and SUTA taxes.

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

In order to prepare Forms W-2, an employer would utilize the employee's earnings record.

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

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

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

The garnishment that takes priority over all others is :

The entry made at the end of the accounting period to record wages incurred but unpaid is:

FICA Taxes Payable-OASDI is a liability account debited for the employer's portion of the FICA tax.

Tips received by employees in excess of tip credit amount are not included as disposable earnings subject to garnishment

When recording the deposit of FUTA taxes owed, the proper entry is:

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.

Since the FUTA tax is a social security tax, it can be charged to the same expense account as the other payroll taxes on the employer, the payroll taxes account.

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

An employee's marital status and number of withholding allowances never appear on the payroll register.

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

Since vacation time is paid when used, there is no need to accrue this time in a liability account at the end of each accounting period.

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

The Need for Payroll and Personnel Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Unemployment Compensation Taxes

Filters