Question 1

Separate accounts are kept for each type of earnings deduction.

Accepted Answer

A) True 
 B)False

Question 2

Match the terms with the definitions.
-A computer system based on a software package that performs all payroll record keeping and prepares payroll checks.

Accepted Answer

A)  direct deposit
B)  electronic system
C)  employee
D)  employee earnings record
E)  Fair Labor Standards Act (FLS
A)  F) FICA taxesG) gross payH) independent contractorI) manual systemJ) net payK) payroll processing centerL) payroll registerM) salaryN) wage-bracket methodO) wagesP) withholding allowanceQ) A) and L)
R) None of the above

Question 3

A withholding allowance exempts a specific dollar amount of an employee's gross pay from federal income tax withholding.

Accepted Answer

A) True 
 B)False

Question 4

The payroll register for the week ended February 14 for Luxury Homes Construction Company indicates gross earnings of $4,000 and total deductions of $1,200. The entry for the Wages and Salaries Expense ending February 14 would be a

Accepted Answer

A)   $1,200 debit.
B)   $2,800 credit.
C)   $4,000 debit.
D)   $5,200 debit.E) C) and D)
F) B) and C)

Question 5

The journal entry to record payroll transactions for the accounting period is to debit Wages and Salaries Expense for the gross pay and credit the appropriate liability and cash accounts.

Accepted Answer

A) True 
 B)False

Question 6

The needs of management and the requirements of various federal and state laws make it necessary for employers to keep records that will provide all of the following information for each employee EXCEPT

Accepted Answer

A)   name, address, and Social Security number.
B)   gross amount of earnings, date of payment, and period of employment covered by each payroll.
C)   gross amount of earnings accumulated since the first of the year.
D)   number of hours the employee works as a volunteer for the community.E) All of the above
F) A) and B)

Question 7

Employers may use the wage-bracket method to determine the amount of tax to be withheld from an employee's pay.

Accepted Answer

A) True 
 B)False

Question 8

Each employee is required to furnish the employer with which of the following forms?

Accepted Answer

A)   W-2
B)   941
C)   W-4
D)   1040E) All of the above
F) A) and B)

Question 9

Form W-4 is a(n)

Accepted Answer

A)   Social Security application form.
B)   Employer's Quarterly Federal Tax Return.
C)   Employee's Withholding Allowance Certificate.
D)   Wage and Tax Statement.E) B) and C)
F) A) and C)

Question 10

Match the terms with the definitions.
-​Compensation for skilled or unskilled labor.

Accepted Answer

A)  direct deposit
B)  electronic system
C)  employee
D)  employee earnings record
E)  Fair Labor Standards Act (FLS
A)  F) FICA taxesG) gross payH) independent contractorI) manual systemJ) net payK) payroll processing centerL) payroll registerM) salaryN) wage-bracket methodO) wagesP) withholding allowanceQ) E) and I)
R) A) and K)

Question 11

Unless an employer has only a few employees, manual systems can be inefficient.

Accepted Answer

A) True 
 B)False

Question 12

FICA taxes include amounts for both Social Security but not Medicare programs.

Accepted Answer

A) True 
 B)False

Question 13

Match the terms with the definitions.
-Someone who works under the control and direction of an employer.

Accepted Answer

A)  direct deposit
B)  electronic system
C)  employee
D)  employee earnings record
E)  Fair Labor Standards Act (FLS
A)  F) FICA taxesG) gross payH) independent contractorI) manual systemJ) net payK) payroll processing centerL) payroll registerM) salaryN) wage-bracket methodO) wagesP) withholding allowanceQ) B) and O)
R) E) and G)

Question 14

A multi-column form used to assemble, compute, and summarize data for all employees at the end of the payroll period is a(n)

Accepted Answer

A)   payroll register.
B)   employee earnings record.
C)   payroll ledger.
D)   payroll check.E) A) and B)
F) All of the above

Question 15

Cameron Tiller is paid one and one-half times the regular hourly rate for all hours worked in excess of 40 hours per week and double time for work on Sunday. Tiller's regular rate is $12 per hour. During the week ended March 15, he worked 9 hours each day from Monday through Friday, 6 hours on Saturday, and 4 hours on Sunday. Tiller's total regular earnings for the week ended March 15 are

Accepted Answer

A)   $110.
B)   $216.
C)   $480.
D)   $430.E) B) and C)
F) A) and D)

Question 16

The payroll register for the week ended May 28 for J & D United indicates gross earnings of $4,000 and total deductions of $1,200. The total of all the credit entries for the payroll for the week ending May 28 would be

Accepted Answer

A)   $1,200.
B)   $2,800.
C)   $4,000.
D)   $5,200.E) A) and D)
F) A) and C)

Question 17

The difference between an independent contractor and an employee is an important legal distinction.

Accepted Answer

A) True 
 B)False

Question 18

Plastic cards or badges encoded with basic employee data are now being used in computer-based time keeping systems.

Accepted Answer

A) True 
 B)False

Question 19

The account that should be credited for the total income tax withheld from employee's earnings is

Accepted Answer

A)   FICA Tax Payable.
B)   FICA Tax Expense.
C)   Employee Income Tax Payable.
D)   Employee Income Tax Expense.E) A) and B)
F) A) and D)

Question 20

Employees Income Tax Payable is a liability account that is credited for the FICA tax withheld from an employee's earnings.

Accepted Answer

A) True 
 B)False

Exam 8: Payroll Accounting: Employee Earnings and Deductions

Employees Income Tax Payable is a liability account that is credited for the FICA tax withheld from an employee's earnings.

Correct Answer
verified

Employers may use the wage-bracket method to determine the amount of tax to be withheld from an employee's pay.

Correct Answer
verified

Match the terms with the definitions. -Compensation for skilled or unskilled labor.

Correct Answer
verified

The journal entry to record payroll transactions for the accounting period is to debit Wages and Salaries Expense for the gross pay and credit the appropriate liability and cash accounts.

Correct Answer
verified

The payroll register for the week ended May 28 for J & D United indicates gross earnings of $4,000 and total deductions of $1,200. The total of all the credit entries for the payroll for the week ending May 28 would be

Correct Answer
verified

Match the terms with the definitions. -Someone who works under the control and direction of an employer.

Correct Answer
verified

A withholding allowance exempts a specific dollar amount of an employee's gross pay from federal income tax withholding.

Correct Answer
verified

The account that should be credited for the total income tax withheld from employee's earnings is

Correct Answer
verified

The difference between an independent contractor and an employee is an important legal distinction.

Correct Answer
verified

Form W-4 is a(n)

Correct Answer
verified

Match the terms with the definitions. -A computer system based on a software package that performs all payroll record keeping and prepares payroll checks.

Correct Answer
verified

Plastic cards or badges encoded with basic employee data are now being used in computer-based time keeping systems.

Correct Answer
verified

The payroll register for the week ended February 14 for Luxury Homes Construction Company indicates gross earnings of $4,000 and total deductions of $1,200. The entry for the Wages and Salaries Expense ending February 14 would be a

Correct Answer
verified

A multi-column form used to assemble, compute, and summarize data for all employees at the end of the payroll period is a(n)

Correct Answer
verified

Correct Answer
verified

Separate accounts are kept for each type of earnings deduction.

Correct Answer
verified

The needs of management and the requirements of various federal and state laws make it necessary for employers to keep records that will provide all of the following information for each employee EXCEPT

Correct Answer
verified

Unless an employer has only a few employees, manual systems can be inefficient.

Correct Answer
verified

Each employee is required to furnish the employer with which of the following forms?

Correct Answer
verified

FICA taxes include amounts for both Social Security but not Medicare programs.

Correct Answer
verified

Exam 8: Payroll Accounting: Employee Earnings and Deductions

Employees Income Tax Payable is a liability account that is credited for the FICA tax withheld from an employee's earnings.

Correct AnswerverifiedShow Answer

Employers may use the wage-bracket method to determine the amount of tax to be withheld from an employee's pay.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -​Compensation for skilled or unskilled labor.

Correct AnswerverifiedShow Answer

The journal entry to record payroll transactions for the accounting period is to debit Wages and Salaries Expense for the gross pay and credit the appropriate liability and cash accounts.

Correct AnswerverifiedShow Answer

The payroll register for the week ended May 28 for J & D United indicates gross earnings of $4,000 and total deductions of $1,200. The total of all the credit entries for the payroll for the week ending May 28 would be

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -Someone who works under the control and direction of an employer.

Correct AnswerverifiedShow Answer

A withholding allowance exempts a specific dollar amount of an employee's gross pay from federal income tax withholding.

Correct AnswerverifiedShow Answer

The account that should be credited for the total income tax withheld from employee's earnings is

Correct AnswerverifiedShow Answer

The difference between an independent contractor and an employee is an important legal distinction.

Correct AnswerverifiedShow Answer

Form W-4 is a(n)

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -A computer system based on a software package that performs all payroll record keeping and prepares payroll checks.

Correct AnswerverifiedShow Answer

Plastic cards or badges encoded with basic employee data are now being used in computer-based time keeping systems.

Correct AnswerverifiedShow Answer

The payroll register for the week ended February 14 for Luxury Homes Construction Company indicates gross earnings of $4,000 and total deductions of $1,200. The entry for the Wages and Salaries Expense ending February 14 would be a

Correct AnswerverifiedShow Answer

A multi-column form used to assemble, compute, and summarize data for all employees at the end of the payroll period is a(n)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Separate accounts are kept for each type of earnings deduction.

Correct AnswerverifiedShow Answer

The needs of management and the requirements of various federal and state laws make it necessary for employers to keep records that will provide all of the following information for each employee EXCEPT

Correct AnswerverifiedShow Answer

Unless an employer has only a few employees, manual systems can be inefficient.

Correct AnswerverifiedShow Answer

Each employee is required to furnish the employer with which of the following forms?

Correct AnswerverifiedShow Answer

FICA taxes include amounts for both Social Security but not Medicare programs.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Match the terms with the definitions. -Compensation for skilled or unskilled labor.

Correct Answer
verified

Correct Answer
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Correct Answer
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