Question 1

The payroll register replaces the general journal in most businesses.

Accepted Answer

A) True 
 B)False  False

Question 2

The account that is credited with amounts withheld from an employee's earnings for any pension plan contribution is

Accepted Answer

A)  Pension Plan Expense. 
B)  Pension Plan Taxes Payable. 
C)  Miscellaneous Expense. 
D)  Pension Plan Deductions Payable. 
A)  Pension Plan Expense. 
B)  Pension Plan Taxes Payable. 
C)  Miscellaneous Expense. 
D)  Pension Plan Deductions Payable. D

Question 3

Match the terms with the definitions.
-The employee does not handle the paycheck; payment is made by the employer directly to the employee's bank.

Accepted Answer

A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance 
A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance A

Question 4

Match the terms with the definitions.
-Payroll taxes withheld to provide Social Security and Medicare benefits.

Accepted Answer

A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance 
A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance

Question 5

Tracing the employee's gross pay for a specific time period into the appropriate wage-bracket table provided by the Internal Revenue Service is called using 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 6

The act that requires most employers to withhold certain amounts from employees' earnings for contributions to the Social Security and Medicare programs is called the

Accepted Answer

A)  Federal Unemployment Tax Act. 
B)  Federal Withholding Tax Act. 
C)  State Unemployment Tax Act. 
D)  Federal Insurance Contributions Act. 
A)  Federal Unemployment Tax Act. 
B)  Federal Withholding Tax Act. 
C)  State Unemployment Tax Act. 
D)  Federal Insurance Contributions Act.

Question 7

Sandra Wilson 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. Wilson's regular rate is $12 per hour. During the week ended July 3, she worked 9 hours each day from Monday through Friday, 6 hours on Saturday, and 4 hours on Sunday. Wilson's overtime earnings for the week ended July 3 are

Accepted Answer

A)  $180. 
B)  $294. 
C)  $360. 
D)  $430. 
A)  $180. 
B)  $294. 
C)  $360. 
D)  $430.

Question 8

In an electronic system, only the employee number and hours worked need to be entered into a computer each pay period.

Accepted Answer

A) True 
 B)False

Question 9

Whether the wage-bracket method or some other method is used in computing the amount of tax to be withheld, the sum of the taxes withheld from an employee's wages is only an approximation of what the employee's actual taxes will be for the year.

Accepted Answer

A) True 
 B)False

Question 10

Match the terms with the definitions.
-​Payroll system in which all records are prepared by hand.

Accepted Answer

A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance 
A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance

Question 11

Match the terms with the definitions.
-A business that sells payroll record-keeping services.

Accepted Answer

A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance 
A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance

Question 12

Pension payments are required deductions from an employee's gross earnings.

Accepted Answer

A) True 
 B)False

Question 13

The Federal Insurance Contributions Act requires employers to withhold FICA taxes from employees' earnings.

Accepted Answer

A) True 
 B)False

Question 14

Match the terms with the definitions.
-A separate record of each employee's earnings.

Accepted Answer

A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance 
A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance

Question 15

Federal income tax that is withheld each pay period from the employee's earnings is NOT based on the

Accepted Answer

A)  total earnings of the employee. 
B)  marital status of the employee. 
C)  number of withholding allowances claimed by the employee. 
D)  number of sick days. 
A)  total earnings of the employee. 
B)  marital status of the employee. 
C)  number of withholding allowances claimed by the employee. 
D)  number of sick days.

Question 16

The Fair Labor Standards Act provides which of the following minimum rates to be paid to employees for all hours worked over 40 hours per week?

Accepted Answer

A)  one and one-half times the regular rate 
B)  same rate as the regular rate 
C)  two and one-half times the regular rate 
D)  two times the regular rate 
A)  one and one-half times the regular rate 
B)  same rate as the regular rate 
C)  two and one-half times the regular rate 
D)  two times the regular rate

Question 17

An amount of an employee's gross pay which is exempt from federal income tax withholding is a(n)

Accepted Answer

A)  additional withholding allowance. 
B)  withholding allowance. 
C)  zero bracket amount. 
D)  special withholding allowance. 
A)  additional withholding allowance. 
B)  withholding allowance. 
C)  zero bracket amount. 
D)  special withholding allowance.

Question 18

Match the terms with the definitions.
-Someone who performs a service for a fee and does not work under the control and direction of the company paying for the service.

Accepted Answer

A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance 
A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance

Question 19

Match the terms with the definitions.
-A form used to assemble the data required at the end of each payroll period.

Accepted Answer

A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance 
A) direct deposit 
B) electronic system 
C) employee 
D) employee earnings record 
E) Fair Labor Standards Act (FLS
A) 
F)FICA taxes
G)gross pay
H)independent contractor
I)manual system
J)net pay
K)payroll processing center
L)payroll register
M)salary
N)wage-bracket method
O)wages
P)withholding allowance

Question 20

The account that is debited for the total amount of the gross earnings of all employees for each pay period is

Accepted Answer

A)  Wages and Salaries Expense. 
B)  Payroll Taxes Expense. 
C)  Miscellaneous Expense. 
D)  Withdrawal Expense. 
A)  Wages and Salaries Expense. 
B)  Payroll Taxes Expense. 
C)  Miscellaneous Expense. 
D)  Withdrawal Expense.

Exam 8: Payroll Accounting: Employee Earnings and Deductions

The payroll register replaces the general journal in most businesses.

The account that is credited with amounts withheld from an employee's earnings for any pension plan contribution is

Match the terms with the definitions. -The employee does not handle the paycheck; payment is made by the employer directly to the employee's bank.

Match the terms with the definitions. -Payroll taxes withheld to provide Social Security and Medicare benefits.

Tracing the employee's gross pay for a specific time period into the appropriate wage-bracket table provided by the Internal Revenue Service is called using the wage-bracket method to determine the amount of tax to be withheld from an employee's pay.

The act that requires most employers to withhold certain amounts from employees' earnings for contributions to the Social Security and Medicare programs is called the

In an electronic system, only the employee number and hours worked need to be entered into a computer each pay period.

Whether the wage-bracket method or some other method is used in computing the amount of tax to be withheld, the sum of the taxes withheld from an employee's wages is only an approximation of what the employee's actual taxes will be for the year.

Match the terms with the definitions. -​Payroll system in which all records are prepared by hand.

Match the terms with the definitions. -A business that sells payroll record-keeping services.

Pension payments are required deductions from an employee's gross earnings.

The Federal Insurance Contributions Act requires employers to withhold FICA taxes from employees' earnings.

Match the terms with the definitions. -A separate record of each employee's earnings.

Federal income tax that is withheld each pay period from the employee's earnings is NOT based on the

The Fair Labor Standards Act provides which of the following minimum rates to be paid to employees for all hours worked over 40 hours per week?

An amount of an employee's gross pay which is exempt from federal income tax withholding is a(n)

Match the terms with the definitions. -Someone who performs a service for a fee and does not work under the control and direction of the company paying for the service.

Match the terms with the definitions. -A form used to assemble the data required at the end of each payroll period.

The account that is debited for the total amount of the gross earnings of all employees for each pay period is

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for Accounts Receivable

Accounting for Notes and Interest

Accounting for Long-Term Assets

Accounting for Partnerships

Corporations: Organization and Capital Stocks

Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

Corporations: Bonds

Statement of Cash Flows

Analysis of Financial Statements

Departmental Accounting

Manufacturing Accounting: The Job Order Cost System

Manufacturing Accounting: The Work Sheet and Financial Statements

Filters

Match the terms with the definitions. -Payroll system in which all records are prepared by hand.