Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 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 3

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. 
A)  $110. 
B)  $216. 
C)  $480. 
D)  $430.

Question 4

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 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

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 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 6

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 7

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

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)  1040 
A)  W-2 
B)  941 
C)  W-4 
D)  1040

Question 9

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

Question 10

Separate accounts are kept for each type of earnings deduction.

Accepted Answer

A) True 
 B)False

Question 11

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. 
A)  payroll register. 
B)  employee earnings record. 
C)  payroll ledger. 
D)  payroll check.

Question 12

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

Question 13

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 14

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

Question 15

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

Question 16

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

Question 17

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. 
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.

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 8: Payroll Accounting: Employee Earnings and Deductions

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

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

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

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

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.

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

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

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

Separate accounts are kept for each type of earnings deduction.

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

Form W-4 is a(n)

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

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

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

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

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

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

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

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

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. -Compensation for skilled or unskilled labor.