Question 1

In the following payroll transaction, what is the amount of the net pay?

Accepted Answer

A)  $399,472.63 
B)  $2,349,839.00 
C)  $93,993.56 
D)  $1,551,383.86 
A)  $399,472.63 
B)  $2,349,839.00 
C)  $93,993.56 
D)  $1,551,383.86 D

Question 2

In general, how are the expenses associated with the payroll accountant's labor allocated in a firm?

Accepted Answer

A)  They are billed directly to a customer. 
B)  They are allocated to one department. 
C)  They are reported as part of the firm's overhead. 
D)  They are billed directly to each department manager. 
A)  They are billed directly to a customer. 
B)  They are allocated to one department. 
C)  They are reported as part of the firm's overhead. 
D)  They are billed directly to each department manager. C

Question 3

Which of the following best describes the purpose of the payroll register?

Accepted Answer

A)  It is a list of all persons and companies that the company pays money during a period. 
B)  It is a report that becomes published with other financial reports. 
C)  It is a worksheet that accountants use to ensure payroll accuracy. 
D)  It is an individual register maintained for each employee, listing of all the payroll information. 
A)  It is a list of all persons and companies that the company pays money during a period. 
B)  It is a report that becomes published with other financial reports. 
C)  It is a worksheet that accountants use to ensure payroll accuracy. 
D)  It is an individual register maintained for each employee, listing of all the payroll information. C

Question 4

The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following payroll items is included on the Balance Sheet?

Accepted Answer

A)  Health insurance expense 
B)  Salaries and wages expense 
C)  Federal withholding tax payable 
D)  Payroll taxes expense 
A)  Health insurance expense 
B)  Salaries and wages expense 
C)  Federal withholding tax payable 
D)  Payroll taxes expense

Question 6

Which of the following columns would be used as part of a general journal entry? (Select all that apply.)

Accepted Answer

A)  Net pay 
B)  Total overtime earnings 
C)  Earnings subject to FICA tax 
D)  Health insurance payable 
A)  Net pay 
B)  Total overtime earnings 
C)  Earnings subject to FICA tax 
D)  Health insurance payable

Question 7

Besides payroll information, the payroll register contains ________.

Accepted Answer

A)  information about the firm's liabilities 
B)  tax remittance information 
C)  proof of payroll deposits 
D)  the firm's payroll checking account information 
A)  information about the firm's liabilities 
B)  tax remittance information 
C)  proof of payroll deposits 
D)  the firm's payroll checking account information

Question 8

At the end of the financial period, the payroll accountant records the ________ of the employee's pay that is earned but not yet paid; in the next financial period, this entry is ________.

Accepted Answer

A)  Amount; deleted 
B)  Accrual; reversed 
C)  Total; carried forward 
D)  Reversal; accrued 
A)  Amount; deleted 
B)  Accrual; reversed 
C)  Total; carried forward 
D)  Reversal; accrued

Question 9

In which order are transactions listed in the General Journal?

Accepted Answer

A)  Alphabetically 
B)  Order of importance 
C)  Numerically 
D)  Chronologically 
A)  Alphabetically 
B)  Order of importance 
C)  Numerically 
D)  Chronologically

Question 10

Which of the following is an example of a liability account?

Accepted Answer

A)  Cash 
B)  Payroll Taxes Expense 
C)  Salaries and Wages Expense 
D)  FUTA Payable 
A)  Cash 
B)  Payroll Taxes Expense 
C)  Salaries and Wages Expense 
D)  FUTA Payable

Question 11

McHale Enterprises has the following incomplete General Journal entry for the most recent pay date:   What is the amount of the 401(k) contributions for the pay date?

Accepted Answer

A)  $2,253.00 
B)  $15,298.22 
C)  $12,576.05 
D)  $9,215.38 
A)  $2,253.00 
B)  $15,298.22 
C)  $12,576.05 
D)  $9,215.38

Question 12

Why do decreases in company profitability decrease in direct proportion to the payroll expenses?

Accepted Answer

A)  Because payroll represents a liability and an expense of the business. The higher payroll expenses are, the lower the profitability will be. 
B)  Because payroll represents an asset and an income of the business. The higher payroll incomes are, the higher the profitability will be. 
C)  Because payroll represents a liability and an expense of the business. The lower payroll expenses are, the lower the profitability will be. 
D)  Because payroll represents an asset and an income of the business. The lower the payroll expenses are, the higher the profitability will be. 
A)  Because payroll represents a liability and an expense of the business. The higher payroll expenses are, the lower the profitability will be. 
B)  Because payroll represents an asset and an income of the business. The higher payroll incomes are, the higher the profitability will be. 
C)  Because payroll represents a liability and an expense of the business. The lower payroll expenses are, the lower the profitability will be. 
D)  Because payroll represents an asset and an income of the business. The lower the payroll expenses are, the higher the profitability will be.

Question 13

Zipperle Company has the following payroll information for the pay period ending September 18, 20XX:   Which items would be debited in the General Journal entry to record the employees' share of the payroll?

Accepted Answer

A)  401(k) contributions 
B)  Garnishment 
C)  Gross pay 
D)  Net pay 
A)  401(k) contributions 
B)  Garnishment 
C)  Gross pay 
D)  Net pay

Question 14

The ________ reflects all unpaid payroll liabilities at any point in the financial period.

Accepted Answer

A)  Income statement 
B)  Statement of Owners' Equity 
C)  Payroll register 
D)  Balance sheet 
A)  Income statement 
B)  Statement of Owners' Equity 
C)  Payroll register 
D)  Balance sheet

Question 15

In what order are accounts presented on the trial balance?

Accepted Answer

A)  By dollar amount 
B)  Alphabetically 
C)  The same as the chart of accounts 
D)  By order of importance 
A)  By dollar amount 
B)  Alphabetically 
C)  The same as the chart of accounts 
D)  By order of importance

Question 16

Which of these accounts is increased by a debit? (Select all that apply.)

Accepted Answer

A)  Expenses 
B)  Revenue 
C)  Assets 
D)  Owners' Capital 
A)  Expenses 
B)  Revenue 
C)  Assets 
D)  Owners' Capital

Question 17

Columns included in the payroll register to compute net pay may include which of the following? (Select all that apply.)

Accepted Answer

A)  Medicare tax 
B)  Employee address 
C)  Employee signature 
D)  Garnishments 
A)  Medicare tax 
B)  Employee address 
C)  Employee signature 
D)  Garnishments

Question 18

Rushing River Boats has the following data in its Social Security tax payable General Ledger account:     It is a monthly schedule depositor. What entry should appear in the General Ledger to reflect the tax remittance on February 15?

Accepted Answer

A)  Credit $420 
B)  Debit $420 
C)  Credit $1,620 
D)  Debit $1,620 
A)  Credit $420 
B)  Debit $420 
C)  Credit $1,620 
D)  Debit $1,620

Question 19

What effect do payroll entries have on a firm's accounting system?

Accepted Answer

A)  They increase the firm's assets. 
B)  They reduce the firm's liabilities. 
C)  They increase the owners' equity. 
D)  They increase the firm's expenses. 
A)  They increase the firm's assets. 
B)  They reduce the firm's liabilities. 
C)  They increase the owners' equity. 
D)  They increase the firm's expenses.

Question 20

Frellies Gym has a credit balance of $31,485.27 in its Wages and Salaries Payable General Ledger account as of August 16. If the pay date is August 16, what transaction should appear in the Wages and Salaries Payable General Ledger account on that date?

Accepted Answer

A)  Debit $31,485.27 
B)  Credit $31,485.27 
C)  Debit $62,970.54 
D)  Credit $62,970.54 
A)  Debit $31,485.27 
B)  Credit $31,485.27 
C)  Debit $62,970.54 
D)  Credit $62,970.54

In the following payroll transaction, what is the amount of the net pay?

In general, how are the expenses associated with the payroll accountant's labor allocated in a firm?

Which of the following best describes the purpose of the payroll register?

The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal.

Which of the following payroll items is included on the Balance Sheet?

Which of the following columns would be used as part of a general journal entry? (Select all that apply.)

Besides payroll information, the payroll register contains ________.

At the end of the financial period, the payroll accountant records the of the employee's pay that is earned but not yet paid; in the next financial period, this entry is .

In which order are transactions listed in the General Journal?

Which of the following is an example of a liability account?

McHale Enterprises has the following incomplete General Journal entry for the most recent pay date: What is the amount of the 401(k) contributions for the pay date?

Why do decreases in company profitability decrease in direct proportion to the payroll expenses?

Zipperle Company has the following payroll information for the pay period ending September 18, 20XX: Which items would be debited in the General Journal entry to record the employees' share of the payroll?

The ________ reflects all unpaid payroll liabilities at any point in the financial period.

In what order are accounts presented on the trial balance?

Which of these accounts is increased by a debit? (Select all that apply.)

Columns included in the payroll register to compute net pay may include which of the following? (Select all that apply.)

Rushing River Boats has the following data in its Social Security tax payable General Ledger account: It is a monthly schedule depositor. What entry should appear in the General Ledger to reflect the tax remittance on February 15?

What effect do payroll entries have on a firm's accounting system?

Frellies Gym has a credit balance of $31,485.27 in its Wages and Salaries Payable General Ledger account as of August 16. If the pay date is August 16, what transaction should appear in the Wages and Salaries Payable General Ledger account on that date?

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Fringe Benefits and Voluntary Deductions

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Filters

Exam 7: The Payroll Register, Employees Earnings Records, and Accounting System Entries

In the following payroll transaction, what is the amount of the net pay?

In general, how are the expenses associated with the payroll accountant's labor allocated in a firm?

Which of the following best describes the purpose of the payroll register?

The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal.

Which of the following payroll items is included on the Balance Sheet?

Which of the following columns would be used as part of a general journal entry? (Select all that apply.)

Besides payroll information, the payroll register contains ________.

At the end of the financial period, the payroll accountant records the ________ of the employee's pay that is earned but not yet paid; in the next financial period, this entry is ________.

In which order are transactions listed in the General Journal?

Which of the following is an example of a liability account?

McHale Enterprises has the following incomplete General Journal entry for the most recent pay date: What is the amount of the 401(k) contributions for the pay date?

Why do decreases in company profitability decrease in direct proportion to the payroll expenses?

Zipperle Company has the following payroll information for the pay period ending September 18, 20XX: Which items would be debited in the General Journal entry to record the employees' share of the payroll?

The ________ reflects all unpaid payroll liabilities at any point in the financial period.

In what order are accounts presented on the trial balance?

Which of these accounts is increased by a debit? (Select all that apply.)

Columns included in the payroll register to compute net pay may include which of the following? (Select all that apply.)

Rushing River Boats has the following data in its Social Security tax payable General Ledger account: It is a monthly schedule depositor. What entry should appear in the General Ledger to reflect the tax remittance on February 15?

What effect do payroll entries have on a firm's accounting system?

Frellies Gym has a credit balance of $31,485.27 in its Wages and Salaries Payable General Ledger account as of August 16. If the pay date is August 16, what transaction should appear in the Wages and Salaries Payable General Ledger account on that date?

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Fringe Benefits and Voluntary Deductions

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Filters

At the end of the financial period, the payroll accountant records the of the employee's pay that is earned but not yet paid; in the next financial period, this entry is .