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- 1. Multiple Choice
In the standard tax payment schedule, a monthly schedule depositor for federal payroll taxes purposes is defined as an employer that paid $50,000.00 or less in the previous four quarters.
True
False
- 2. Multiple ChoiceEmployers make periodic payments to the government for all payroll taxes withheld from employees, as well as for employer payroll taxes.TrueFalse
- 3. Multiple ChoiceEmployer payroll taxes include federal income tax, social security tax, Medicare tax, federal unemployment tax, and state unemployment tax.TrueFalse
- 4. Multiple ChoiceA withholding allowance deduction reduces the amount of income tax withheld from an employee’s earnings.TrueFalse
- 5. Multiple ChoiceThe only deductions that may be legally made from an employee’s pay are those required by the federal, state, or local governments.TrueFalse
- 6. Multiple ChoiceIf an employer’s annual federal unemployment tax liability is greater than $100.00, the employer makes quarterly payments.TrueFalse
- 7. Multiple ChoiceIn a departmental business, the total earnings are classified by department to provide better cost control.TrueFalse
- 8. Multiple ChoiceDepositing payroll checks directly to an employee’s checking or savings account is called an automatic check deposit.TrueFalse
- 9. Multiple ChoiceThe total amount earned by all employees for a pay period is called a payroll.TrueFalse
- 10. Multiple ChoiceOne employee earnings record is used each payroll period to detail the earnings of all employees.TrueFalse
- 11. Multiple ChoiceOvertime pay is paid for hours worked in excess of eight hours per day. The typical overtime rate is $5.00 more than the regular hourly rate.TrueFalse
- 12. Multiple ChoiceAn accounting form that summarizes the earnings, deductions, and net pay of all employees for one pay period is called a payroll register.TrueFalse
- 13. Multiple ChoiceA business must provide a yearly report to each employee, showing the total salary earned and the total taxes withheld.TrueFalse
- 14. Multiple ChoiceElectronic funds transfer eliminates the need for preparing payroll checks. Instead, each employee simply receives a statement of earnings and deductions.TrueFalse
- 15. Multiple ChoiceThe period covered by a salary payment is called a quarterly period.TrueFalse
- 16. Multiple ChoiceAccumulated earnings on the employee earnings record are used toshow net pay to dateindicate when the tax base has been reachedshow total earnings for the quarterindicate when an employee raise is due
- 17. Multiple ChoiceTotal sales for the month were $15,848. Sales discounts were $158, and sales returns and allowances were $672. Kelly Mann is paid a 2% commission on net sales. Her commission for the month amounted to$300.36$303.52$313.80$316.96
- 18. Multiple ChoiceWhen a special payroll account is used, the balance after all payroll checks have been cashedis zerois the amount of payroll taxes dueis the total amount of deductionscannot be determined from the information given
- 19. Multiple ChoiceIf employer payroll taxes are paid using the Electronic Federal Tax Payment System (EFTPS), the entry is recorded in thegeneral journalpayroll registercash payments journalelectronic payments journal
- 20. Multiple ChoiceThe liability for employer payroll taxes for a specific pay period is recorded in thecash payments journalgeneral journalpayroll registeremployee’s earnings record
- 21. Multiple ChoiceCurrent period earnings are $900. Deductions for the payroll period are $150. The previous period’s accumulated earnings are $12,000. The new accumulated earnings are$12,750$12,900$13,050none of the above
- 22. Multiple ChoiceThe amount recorded in the Cash Credit column of the cash payments journal for the payment of a payroll equalstotal earningsnet paydepartmental earningstotal salary expense
- 23. Multiple ChoiceMarge Vergman earns $14.00 per hour for all hours worked up to 40 hours each week.She earns 1 1/2 times her hourly rate for all hours worked in excess of 40 hours. She is paid biweekly. If Marge works 43 hours one week and 40 hours the next week, her total biweekly earnings are$1,120$1,162$1,183$1,173
- 24. Multiple ChoiceIn a payroll register, the net pay representstotal earningstotal earnings less total deductionsdepartmental earningstotal earnings less taxes withheld
- 25. Multiple ChoiceThe accounting principle being applied when the same accounting procedures are used regardless of whether checks are issued to employees or automatic check deposit or electronic funds transfer is used for payroll isConsistent ReportingMaterialityMatching Expenses with RevenueHistorical Cost
- 26. Multiple Choice
A tax base is the lowest amount of earnings on which a tax is calculated.
True
False
- 27. Multiple Choice
The payment of the payroll is journalized in the cash payments journal.
True
False
- 28. Multiple Choice
Depositing net pay directly to an employee's checking or savings accounting is an example of electronic funds transfer.
True
False
- 29. Multiple Choice
All time worked in excess of 40 hours in any one week is considered overtime and paid at 1 1/2 times the regular rate.
True
False
- 30. Multiple Choice
The total earnings, marital status, and number of withholding allowances claimed by an employee determine the federal income tax withheld.
True
False
- 31. Multiple Choice
In a departmental payroll register, administrative salaries represent the earnings of
personnel earning a commission
the company's president
all nondepartmental personnel
all company personnel
- 32. Multiple Choice
Unemployment taxes are paid by the employer and are due to the
federal government only
state government only
both federal and state government
federal, state, and city government
- 33. Multiple Choice
When journalizing a payroll, the liability amounts are entered in the cash payments journal in the
General Debit column
General Credit column
Accounts Payable Debit column
Payroll Credit column
- 34. Multiple Choice
The date that appears at the top of the employee earnings record is
the last day of the payroll period
the last day of the quarter
the last day of the year
the current date
- 35. Multiple Choice
A business form used to record details affecting payments made to an employee is called an employee earnings record.
True
False
- Answer choicesTagsAnswer choicesTags