Question 1

Kierofree Air Tours has the following payroll data for its November 5 pay date:   How much is the net pay?

Accepted Answer

A)  $199,023.00 
B)  $185,216.26 
C)  $142,578.94 
D)  $124,660.35 
A)  $199,023.00 
B)  $185,216.26 
C)  $142,578.94 
D)  $124,660.35

Question 2

When a firm has wages earned but not yet paid at the end of a financial reporting period, what must it do to recognize the liabilities and expenses?

Accepted Answer

A)  It must credit the asset accounts for the appropriate payroll amounts. 
B)  It must pay its employees for the wages earned as of that date. 
C)  It must wait until the next financial period to record the payroll data. 
D)  It must create an adjusting entry to recognize the payroll accrual. 
A)  It must credit the asset accounts for the appropriate payroll amounts. 
B)  It must pay its employees for the wages earned as of that date. 
C)  It must wait until the next financial period to record the payroll data. 
D)  It must create an adjusting entry to recognize the payroll accrual.

Question 3

Dooley Publishing has the following payroll data for its July 1 pay date:   How much Federal withholding tax was deducted from employees' pay?

Accepted Answer

A)  $15,203.14 
B)  $42,083.87 
C)  $32,115.48 
D)  $29,391.98 
A)  $15,203.14 
B)  $42,083.87 
C)  $32,115.48 
D)  $29,391.98

Question 4

A(n) ________ is a collection of cash and other items that are used in the operation of the business.

Accepted Answer

A)  Liability 
B)  Asset 
C)  Revenue 
D)  Equity 
A)  Liability 
B)  Asset 
C)  Revenue 
D)  Equity

Question 5

What is the term for transferring data from the General Journal to the General Ledger?

Accepted Answer

A)  Cross-referencing 
B)  Ledgering 
C)  Posting 
D)  Transcribing 
A)  Cross-referencing 
B)  Ledgering 
C)  Posting 
D)  Transcribing

Question 6

Didier and Sons had the following employer's share payroll tax general journal entry for the May 5 pay date:   What is the amount of the Social Security tax payable?

Accepted Answer

A)  $2,572.59 
B)  $1,875.98 
C)  $1,582.39 
D)  $1,715.56 
A)  $2,572.59 
B)  $1,875.98 
C)  $1,582.39 
D)  $1,715.56

Question 7

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

Accepted Answer

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

Question 8

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date:   When the firm remits the union dues for this pay period, what is the correct General Journal entry?

Accepted Answer

A)  Debit Cash $6,556.46; Credit Union Dues Payable $4,683.19 
B)  Debit Union Dues Payable $4,683.19; Credit Cash $4,683.19 
C)  Debit Cash $4,683.19; Credit Union Dues Payable $4,683.19 
D)  Debit Union Dues Payable $4,683.19; Credit Cash $6,556.46 
A)  Debit Cash $6,556.46; Credit Union Dues Payable $4,683.19 
B)  Debit Union Dues Payable $4,683.19; Credit Cash $4,683.19 
C)  Debit Cash $4,683.19; Credit Union Dues Payable $4,683.19 
D)  Debit Union Dues Payable $4,683.19; Credit Cash $6,556.46

Question 9

Which of the following financial report(s) reflect the effects of debit and credit General Journal entries used in payroll accounting? (Select all that apply.)

Accepted Answer

A)  Income Statement 
B)  Trial Balance 
C)  Balance Sheet 
D)  Labor Distribution Report 
A)  Income Statement 
B)  Trial Balance 
C)  Balance Sheet 
D)  Labor Distribution Report

Question 10

Which of the following is an example of an asset account?

Accepted Answer

A)  Revenue 
B)  Salaries Payable 
C)  Cash 
D)  Payroll Tax Expense 
A)  Revenue 
B)  Salaries Payable 
C)  Cash 
D)  Payroll Tax Expense

Question 11

On which financial report will employer-paid portions of health insurance premiums be listed?

Accepted Answer

A)  The statement of owners' equity 
B)  The income statement 
C)  The balance sheet 
D)  The labor report 
A)  The statement of owners' equity 
B)  The income statement 
C)  The balance sheet 
D)  The labor report

Question 12

The ________ is the master document that contains an employee's marital status, deductions, and year-to-date earnings.

Accepted Answer

A)  Payroll register 
B)  Form W-4 
C)  Employee earnings record 
D)  Personnel file 
A)  Payroll register 
B)  Form W-4 
C)  Employee earnings record 
D)  Personnel file

Question 13

What is true about the trial balance?

Accepted Answer

A)  It contains a detailed listing of every transaction during a period. 
B)  It may contain whatever accounts the accountant wishes to include. 
C)  Payroll accounts do not appear on it because of their changeable nature. 
D)  The total of the debits must equal the total of the credits. 
A)  It contains a detailed listing of every transaction during a period. 
B)  It may contain whatever accounts the accountant wishes to include. 
C)  Payroll accounts do not appear on it because of their changeable nature. 
D)  The total of the debits must equal the total of the credits.

Question 14

On October 15, Eco Brewers had a balance of $4,390 in its Social Security tax payable account. It posted an additional $4,390 on its October 31 pay date. Since Eco Brewers is a monthly schedule depositor, what entry should appear on November 15 for the remittance of the month's Social Security taxes?

Accepted Answer

A)  Credit $8,780 
B)  Debit $8,780 
C)  Credit $4,390 
D)  Debit $4,390 
A)  Credit $8,780 
B)  Debit $8,780 
C)  Credit $4,390 
D)  Debit $4,390

Question 15

The purpose of the net pay and check number columns in the payroll register is to verify accurate disbursal of payroll.

Accepted Answer

A) True 
 B)False

Question 16

How do accrued, but not paid, wages appear on the balance sheet?

Accepted Answer

A)  As expenses 
B)  As assets 
C)  As equity 
D)  As liabilities 
A)  As expenses 
B)  As assets 
C)  As equity 
D)  As liabilities

Question 17

What is the primary purpose of a labor report?

Accepted Answer

A)  It depicts the ideal distribution of labor in a firm. 
B)  It designates where labor is used in a firm. 
C)  It communicates departmental profitability. 
D)  It is a report designed to be read by parties external to the firm. 
A)  It depicts the ideal distribution of labor in a firm. 
B)  It designates where labor is used in a firm. 
C)  It communicates departmental profitability. 
D)  It is a report designed to be read by parties external to the firm.

Question 18

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date:   When the firm remits its health insurance premium for this pay date, what is the General Journal entry?

Accepted Answer

A)  Debit Cash $13,618.71; Credit Health Insurance Payable $13,618.71 
B)  Debit Cash $27,237.42; Credit Health Insurance Payable $27,237.42 
C)  Debit Health Insurance Payable $13,618.71; Credit Cash $13,618.71 
D)  Debit Health Insurance Payable $27,237.42; Credit Cash $27,237.42 
A)  Debit Cash $13,618.71; Credit Health Insurance Payable $13,618.71 
B)  Debit Cash $27,237.42; Credit Health Insurance Payable $27,237.42 
C)  Debit Health Insurance Payable $13,618.71; Credit Cash $13,618.71 
D)  Debit Health Insurance Payable $27,237.42; Credit Cash $27,237.42

Question 19

Besides containing the supporting data for periodic tax reports, the employee earnings record serves as a backup in the event of computer failure.

Accepted Answer

A) True 
 B)False

Question 20

On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. What is the General Journal entry to record this transaction?

Accepted Answer

A)  Debit R. Sanders Capital, $250,000; Credit Cash, $250,000 
B)  Debit Revenue, $250,000; Credit Cash, $250,000 
C)  Debit Cash, $250,000; Credit Revenue, $250,000 
D)  Debit Cash, $250,000; Credit R. Sanders Capital, $250,000 
A)  Debit R. Sanders Capital, $250,000; Credit Cash, $250,000 
B)  Debit Revenue, $250,000; Credit Cash, $250,000 
C)  Debit Cash, $250,000; Credit Revenue, $250,000 
D)  Debit Cash, $250,000; Credit R. Sanders Capital, $250,000

Kierofree Air Tours has the following payroll data for its November 5 pay date: How much is the net pay?

When a firm has wages earned but not yet paid at the end of a financial reporting period, what must it do to recognize the liabilities and expenses?

Dooley Publishing has the following payroll data for its July 1 pay date: How much Federal withholding tax was deducted from employees' pay?

A(n) ________ is a collection of cash and other items that are used in the operation of the business.

What is the term for transferring data from the General Journal to the General Ledger?

Didier and Sons had the following employer's share payroll tax general journal entry for the May 5 pay date: What is the amount of the Social Security tax payable?

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

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: When the firm remits the union dues for this pay period, what is the correct General Journal entry?

Which of the following financial report(s) reflect the effects of debit and credit General Journal entries used in payroll accounting? (Select all that apply.)

Which of the following is an example of an asset account?

On which financial report will employer-paid portions of health insurance premiums be listed?

The ________ is the master document that contains an employee's marital status, deductions, and year-to-date earnings.

What is true about the trial balance?

The purpose of the net pay and check number columns in the payroll register is to verify accurate disbursal of payroll.

How do accrued, but not paid, wages appear on the balance sheet?

What is the primary purpose of a labor report?

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: When the firm remits its health insurance premium for this pay date, what is the General Journal entry?

Besides containing the supporting data for periodic tax reports, the employee earnings record serves as a backup in the event of computer failure.

On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. What is the General Journal entry to record this transaction?

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

Kierofree Air Tours has the following payroll data for its November 5 pay date: How much is the net pay?

When a firm has wages earned but not yet paid at the end of a financial reporting period, what must it do to recognize the liabilities and expenses?

Dooley Publishing has the following payroll data for its July 1 pay date: How much Federal withholding tax was deducted from employees' pay?

A(n) ________ is a collection of cash and other items that are used in the operation of the business.

What is the term for transferring data from the General Journal to the General Ledger?

Didier and Sons had the following employer's share payroll tax general journal entry for the May 5 pay date: What is the amount of the Social Security tax payable?

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

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: When the firm remits the union dues for this pay period, what is the correct General Journal entry?

Which of the following financial report(s) reflect the effects of debit and credit General Journal entries used in payroll accounting? (Select all that apply.)

Which of the following is an example of an asset account?

On which financial report will employer-paid portions of health insurance premiums be listed?

The ________ is the master document that contains an employee's marital status, deductions, and year-to-date earnings.

What is true about the trial balance?

The purpose of the net pay and check number columns in the payroll register is to verify accurate disbursal of payroll.

How do accrued, but not paid, wages appear on the balance sheet?

What is the primary purpose of a labor report?

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: When the firm remits its health insurance premium for this pay date, what is the General Journal entry?

Besides containing the supporting data for periodic tax reports, the employee earnings record serves as a backup in the event of computer failure.

On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. What is the General Journal entry to record this transaction?

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