Question 1

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

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The employer's payroll tax expenses are recorded by all employers at the time these taxes are actually paid.

Accepted Answer

A) True 
 B)False

Question 4

Under the Uniform Unclaimed Property Act, any unclaimed paychecks must be turned over to the state after the next payday.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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

Question 8

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 9

Under the Consumer Credit Protection Act, disposable earnings are the earnings remaining after any deductions for health insurance.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not an expense of the employer?

Accepted Answer

A) FUTA tax 
B) FICA tax-HI 
C) FICA tax-OASDI 
D) SUTA tax 
E) Union dues withheld

Exam 6: Analyzing and Journalizing Payroll

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

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

The employer's payroll tax expenses are recorded by all employers at the time these taxes are actually paid.

Under the Uniform Unclaimed Property Act, any unclaimed paychecks must be turned over to the state after the next payday.

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

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

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

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.

Under the Consumer Credit Protection Act, disposable earnings are the earnings remaining after any deductions for health insurance.

Which of the following is not an expense of the employer?