Question 1

Payroll taxes withheld represent a liability for an employer until payment is made.

Accepted Answer

A) True 
 B)False  True

Question 2

Select the one term that best fits each definition.
-A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.

Accepted Answer

A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance 
A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance D

Question 3

The larger the number of withholding allowances claimed, the larger the amount of income tax withheld.

Accepted Answer

A) True 
 B)False  False

Question 4

Employee regular earnings are calculated as

Accepted Answer

A)  regular hours times regular rate. 
B)  total hours divided by regular rate. 
C)  total hours plus overtime rate. 
D)  overtime hours minus overtime rate. 
A)  regular hours times regular rate. 
B)  total hours divided by regular rate. 
C)  total hours plus overtime rate. 
D)  overtime hours minus overtime rate.

Question 5

The first task in preparing a payroll is to determine the number of days worked by each employee.

Accepted Answer

A) True 
 B)False

Question 6

A single person will have more income tax withheld than a married employee.

Accepted Answer

A) True 
 B)False

Question 7

Select the one term that best fits each definition.
-A deduction from total earnings for each person legally supported by a taxpayer, including the employee.

Accepted Answer

A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance 
A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance

Question 8

Individual payroll checks are usually written on a(n)

Accepted Answer

A)  company's regular checking account. 
B)  separate payroll checking account. 
C)  special purposes account. 
D)  employee earnings account. 
A)  company's regular checking account. 
B)  separate payroll checking account. 
C)  special purposes account. 
D)  employee earnings account.

Question 9

The amount on the employee earnings record used to determine if certain payroll taxes apply to an employee's earnings is

Accepted Answer

A)  net pay. 
B)  accumulated earnings. 
C)  gross earnings. 
D)  social security taxes. 
A)  net pay. 
B)  accumulated earnings. 
C)  gross earnings. 
D)  social security taxes.

Question 10

Select the one term that best fits each definition.
-A qualified retirement plan that provides most individuals with a deferred federal income tax benefit.

Accepted Answer

A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance 
A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance

Question 11

Select the one term that best fits each definition.
-A qualified retirement plan that allows tax-free withdrawals from the account.

Accepted Answer

A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance 
A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance

Question 12

Qualified retirement plans are approved by an act of Congress.

Accepted Answer

A) True 
 B)False

Question 13

Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government.

Accepted Answer

A) True 
 B)False

Question 14

Select the one term that best fits each definition.
-The payment of an employee's net pay using electronic funds transfer.

Accepted Answer

A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance 
A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance

Question 15

When an employee's earnings exceed the tax base, no more social security tax is deducted.

Accepted Answer

A) True 
 B)False

Question 16

Select the one term that best fits each definition.
-The maximum amount of gross earnings on which a tax is calculated.

Accepted Answer

A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance 
A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance

Question 17

Each employee name is listed in a payroll register along with

Accepted Answer

A)  employee number. 
B)  marital status. 
C)  withholding allowances. 
D)  all of these. 
A)  employee number. 
B)  marital status. 
C)  withholding allowances. 
D)  all of these.

Question 18

Select the one term that best fits each definition.
-A federal tax paid for hospital insurance.

Accepted Answer

A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance 
A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance

Question 19

A business form used to record details affecting payments made to an employee is a(n)

Accepted Answer

A)  employee earnings record. 
B)  payroll journal. 
C)  employee accounts payable record. 
D)  tax withholding form. 
A)  employee earnings record. 
B)  payroll journal. 
C)  employee accounts payable record. 
D)  tax withholding form.

Question 20

Select the one term that best fits each definition.
-A method of paying an employee based on the amount of sales the employee generates.

Accepted Answer

A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance 
A)  401(k) 
B)  commission 
C)  direct deposit 
D)  electronic funds transfer 
E)  individual retirement account
F) Medicare tax
G) net pay
H) qualified retirement plan
I) Roth individual retirement account
J) social security tax
K) tax base
L) withholding allowance

Exam 12: Preparing Payroll Records

Payroll taxes withheld represent a liability for an employer until payment is made.

Select the one term that best fits each definition. -A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.

The larger the number of withholding allowances claimed, the larger the amount of income tax withheld.

Employee regular earnings are calculated as

The first task in preparing a payroll is to determine the number of days worked by each employee.

A single person will have more income tax withheld than a married employee.

Select the one term that best fits each definition. -A deduction from total earnings for each person legally supported by a taxpayer, including the employee.

Individual payroll checks are usually written on a(n)

The amount on the employee earnings record used to determine if certain payroll taxes apply to an employee's earnings is

Select the one term that best fits each definition. -A qualified retirement plan that provides most individuals with a deferred federal income tax benefit.

Select the one term that best fits each definition. -A qualified retirement plan that allows tax-free withdrawals from the account.

Qualified retirement plans are approved by an act of Congress.

Businesses use payroll records to inform employees of their annual earnings and to prepare payroll reports for the government.

Select the one term that best fits each definition. -The payment of an employee's net pay using electronic funds transfer.

When an employee's earnings exceed the tax base, no more social security tax is deducted.

Select the one term that best fits each definition. -The maximum amount of gross earnings on which a tax is calculated.

Each employee name is listed in a payroll register along with

Select the one term that best fits each definition. -A federal tax paid for hospital insurance.

A business form used to record details affecting payments made to an employee is a(n)

Select the one term that best fits each definition. -A method of paying an employee based on the amount of sales the employee generates.

The Accounting Equation

Debit and Credit Parts

Journalizing Transactions

Posting to a General Ledger

Cash Control Systems

Work Sheet and Adjusting Entries

Financial Statements for a Proprietorship

Closing Entries and Post-Closing

Accounting for Purchases and Cash Payments

Accounting for Sales and Cash Receipts

Using a General Journal

Accounting for Payroll and Payroll Taxes

Uncollectible Accounts Receivable

Adjusting Entries and a Trial Balance

Financial Statements and Closing Entries

Financial Statement Analysis

Acquiring Capital for Growth and Development

Plant Assets and Intangible Assets

Accounting for Inventory

Accruals, Deferrals, and Reversing Entries

End-Of-Fiscal-Period Work for a Corporation

Accounting for Partnerships

Recording International and Internet Sales

Service Business Organized As a Proprietorship

Merchandising Business As a Corporation

Additional Accounting Procedures

Filters