Question 1

The employer incurs a payroll tax expense equal to the amount withheld from the employees' wages for federal income taxes.

Accepted Answer

A) True 
 B)False  False

Question 2

FICA taxes do not provide workers with

Accepted Answer

A) life insurance. 
B) supplemental retirement. 
C) employment disability. 
D) medical benefits. 
A) life insurance. 
B) supplemental retirement. 
C) employment disability. 
D) medical benefits. A

Question 3

The tax that is paid equally by the employer and employee is the

Accepted Answer

A) federal income tax. 
B) federal unemployment tax. 
C) state unemployment tax. 
D) FICA tax. 
A) federal income tax. 
B) federal unemployment tax. 
C) state unemployment tax. 
D) FICA tax. D

Question 4

The journal entry to record the payroll for a period will include a credit to Salaries and Wages Payable for the gross

Accepted Answer

A) amount less all payroll deductions. 
B) amount of all paychecks issued. 
C) pay less taxes payable. 
D) pay less voluntary deductions. 
A) amount less all payroll deductions. 
B) amount of all paychecks issued. 
C) pay less taxes payable. 
D) pay less voluntary deductions.

Question 5

Control over timekeeping does not include

Accepted Answer

A) having one employee punch the time cards for several employees in the same work area. 
B) time clock procedure monitoring by a supervisor. 
C) pay period time reports kept by a supervisor for salaried personnel. 
D) overtime approval by a supervisor. 
A) having one employee punch the time cards for several employees in the same work area. 
B) time clock procedure monitoring by a supervisor. 
C) pay period time reports kept by a supervisor for salaried personnel. 
D) overtime approval by a supervisor.

Question 6

FICA taxes and federal income taxes are levied on employees' earnings without limit.

Accepted Answer

A) True 
 B)False

Question 7

The effective federal unemployment tax rate is usually

Accepted Answer

A) 6.2%. 
B) 0.8%. 
C) 5.4%. 
D) 8.0%. 
A) 6.2%. 
B) 0.8%. 
C) 5.4%. 
D) 8.0%.

Question 8

A good internal control feature is to have several employees choose one person to punch all of their time cards.

Accepted Answer

A) True 
 B)False

Question 9

Internal control over payroll is not necessary because employees will complain if they do not receive the correct amount on their payroll checks.

Accepted Answer

A) True 
 B)False

Question 10

Jerri Rice has worked 44 hours this week.She worked at least 8 hours each day.Her regular hourly wage is $12 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week.What are Jerri's gross wages for the week?

Accepted Answer

A) $528 
B) $552 
C) $792 
D) $576 
A) $528 
B) $552 
C) $792 
D) $576

Question 11

Which one of the following payroll taxes does not result in a payroll tax expense for the employer?

Accepted Answer

A) FICA tax 
B) Federal income tax 
C) Federal unemployment tax 
D) State unemployment tax 
A) FICA tax 
B) Federal income tax 
C) Federal unemployment tax 
D) State unemployment tax

Question 12

FICA taxes withheld and federal income taxes withheld are mandatory payroll deductions.

Accepted Answer

A) True 
 B)False

Question 13

Which one of the following payroll taxes is not withheld from the employee's wages because it is not levied on the employee?

Accepted Answer

A) Federal income tax 
B) Federal unemployment tax 
C) State income tax 
D) FICA tax 
A) Federal income tax 
B) Federal unemployment tax 
C) State income tax 
D) FICA tax

Question 14

The form showing gross earnings, FICA taxes withheld, and income taxes withheld for the year is

Accepted Answer

A) Form W-4. 
B) Form W-2. 
C) Form 1040. 
D) Schedule A. 
A) Form W-4. 
B) Form W-2. 
C) Form 1040. 
D) Schedule A.

Question 15

A Wage and Tax Statement shows gross earnings, FICA taxes withheld, and income taxes withheld for the year.

Accepted Answer

A) True 
 B)False

Question 16

An employee's payroll check is distributed by the

Accepted Answer

A) personnel department. 
B) payroll department. 
C) cashier. 
D) treasurer's department. 
A) personnel department. 
B) payroll department. 
C) cashier. 
D) treasurer's department.

Question 17

Changes in pay rates during employment should be authorized by the

Accepted Answer

A) human resources department. 
B) payroll department. 
C) treasurer's department. 
D) timekeeping department. 
A) human resources department. 
B) payroll department. 
C) treasurer's department. 
D) timekeeping department.

Question 18

An employee's time card is used to record the number of exemptions claimed by the employee for income tax withholding purposes.

Accepted Answer

A) True 
 B)False

Question 19

A good internal control feature is to have a written hiring authorization form completed before a new employee is added to the payroll.

Accepted Answer

A) True 
 B)False

Question 20

The state unemployment tax rate is usually 5.4% on the first $7,000 of wages paid to an employee during the year.

Accepted Answer

A) True 
 B)False

The employer incurs a payroll tax expense equal to the amount withheld from the employees' wages for federal income taxes.

FICA taxes do not provide workers with

The tax that is paid equally by the employer and employee is the

The journal entry to record the payroll for a period will include a credit to Salaries and Wages Payable for the gross

Control over timekeeping does not include

FICA taxes and federal income taxes are levied on employees' earnings without limit.

The effective federal unemployment tax rate is usually

A good internal control feature is to have several employees choose one person to punch all of their time cards.

Internal control over payroll is not necessary because employees will complain if they do not receive the correct amount on their payroll checks.

Jerri Rice has worked 44 hours this week.She worked at least 8 hours each day.Her regular hourly wage is $12 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week.What are Jerri's gross wages for the week?

Which one of the following payroll taxes does not result in a payroll tax expense for the employer?

FICA taxes withheld and federal income taxes withheld are mandatory payroll deductions.

Which one of the following payroll taxes is not withheld from the employee's wages because it is not levied on the employee?

The form showing gross earnings, FICA taxes withheld, and income taxes withheld for the year is

A Wage and Tax Statement shows gross earnings, FICA taxes withheld, and income taxes withheld for the year.

An employee's payroll check is distributed by the

Changes in pay rates during employment should be authorized by the

An employee's time card is used to record the number of exemptions claimed by the employee for income tax withholding purposes.

A good internal control feature is to have a written hiring authorization form completed before a new employee is added to the payroll.

The state unemployment tax rate is usually 5.4% on the first $7,000 of wages paid to an employee during the year.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control and Cash

Accounting for Receivables

Plant Assets, Natural Resources and Intangible Assets

Liabilities

Corporations: Organisations, Stock Transactions and Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Time Value of Money

Other Significant Liabilities

Filters

Exam 15: Payroll Accounting

The employer incurs a payroll tax expense equal to the amount withheld from the employees' wages for federal income taxes.

FICA taxes do not provide workers with

The tax that is paid equally by the employer and employee is the

The journal entry to record the payroll for a period will include a credit to Salaries and Wages Payable for the gross

Control over timekeeping does not include

FICA taxes and federal income taxes are levied on employees' earnings without limit.

The effective federal unemployment tax rate is usually

A good internal control feature is to have several employees choose one person to punch all of their time cards.

Internal control over payroll is not necessary because employees will complain if they do not receive the correct amount on their payroll checks.

Jerri Rice has worked 44 hours this week.She worked at least 8 hours each day.Her regular hourly wage is $12 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week.What are Jerri's gross wages for the week?

Which one of the following payroll taxes does not result in a payroll tax expense for the employer?

FICA taxes withheld and federal income taxes withheld are mandatory payroll deductions.

Which one of the following payroll taxes is not withheld from the employee's wages because it is not levied on the employee?

The form showing gross earnings, FICA taxes withheld, and income taxes withheld for the year is

A Wage and Tax Statement shows gross earnings, FICA taxes withheld, and income taxes withheld for the year.

An employee's payroll check is distributed by the

Changes in pay rates during employment should be authorized by the

An employee's time card is used to record the number of exemptions claimed by the employee for income tax withholding purposes.

A good internal control feature is to have a written hiring authorization form completed before a new employee is added to the payroll.

The state unemployment tax rate is usually 5.4% on the first $7,000 of wages paid to an employee during the year.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control and Cash

Accounting for Receivables

Plant Assets, Natural Resources and Intangible Assets

Liabilities

Corporations: Organisations, Stock Transactions and Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Time Value of Money

Other Significant Liabilities

Filters