Question 1

The payroll register is a summary of the annual earnings of each employee.

Accepted Answer

A) True 
 B)False

Question 2

Compensation expressed in terms of hours, weeks, or units produced for skilled or unskilled labor is usually referred to as salary.

Accepted Answer

A) True 
 B)False

Question 3

A purely manual system of record keeping is one in which all records, journals, and ledgers are prepared by hand.

Accepted Answer

A) True 
 B)False

Question 4

Compensation normally expressed in biweekly, monthly, or annual terms for managerial or administrative services is called

Accepted Answer

A)  supplements. 
B)  commission. 
C)  salary. 
D)  wages. 
A)  supplements. 
B)  commission. 
C)  salary. 
D)  wages.

Question 5

Payroll expenditures represent a relatively small part of the total expenditures of most companies.

Accepted Answer

A) True 
 B)False

Question 6

Employers primarily 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

Question 7

The Fair Labor Standards Act requires employees to pay double the regular hourly rate for the time worked on Saturday.

Accepted Answer

A) True 
 B)False

Question 8

The Social Security Tax Payable account is debited for Social Security taxes withheld and Social Security taxes imposed on the employer.

Accepted Answer

A) True 
 B)False

Question 9

Under federal law, employers are required to withhold certain amounts from the total earnings of each employee to be applied toward the payment of the employee's federal income tax.

Accepted Answer

A) True 
 B)False

Question 10

Match the terms with the definitions.
-​Gross pay less mandatory and voluntary deductions.

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.
-​Requires employers to pay overtime at 1 1/2 times the regular rate to any hourly employee who works over 40 hours in a week.

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

Both manual and electronic payroll systems require the same payroll input and output.

Accepted Answer

A) True 
 B)False

Question 13

Any person who agrees to perform a service for a fee and is not subject to the control of those for whom the service is performed is called a(n)

Accepted Answer

A)  manager. 
B)  employee. 
C)  independent contractor. 
D)  executive. 
A)  manager. 
B)  employee. 
C)  independent contractor. 
D)  executive.

Question 14

The account that is credited for the Medicare tax withheld from employee's earnings and the Medicare tax imposed on the employer is

Accepted Answer

A)  Medicare Tax Expense. 
B)  Medicare Tax Payable. 
C)  Payroll Taxes Expense. 
D)  Payroll Expense. 
A)  Medicare Tax Expense. 
B)  Medicare Tax Payable. 
C)  Payroll Taxes Expense. 
D)  Payroll Expense.

Question 15

Jillian Diaz receives a regular salary of $1,500 a month and is entitled to overtime pay at the rate of one and one-half times the regular hourly rate for any time worked in excess of 40 hours per week. Diaz's overtime pay rate is

Accepted Answer

A)  $6.92. 
B)  $12.98. 
C)  $276.92. 
D)  $1,800. 
A)  $6.92. 
B)  $12.98. 
C)  $276.92. 
D)  $1,800.

Question 16

Denise Cruz receives a regular salary of $900 a month and is entitled to overtime pay at the rate of one and one-half times the regular hourly rate for any time worked in excess of 40 hours per week. Cruz's overtime rate of pay is

Accepted Answer

A)  $5.63. 
B)  $7.79. 
C)  $8.44. 
D)  $22.50. 
A)  $5.63. 
B)  $7.79. 
C)  $8.44. 
D)  $22.50.

Question 17

For this text, it is assumed that the maximum amount of earnings subject to FICA taxes is

Accepted Answer

A)  $100,000. 
B)  $110,500. 
C)  $105,900. 
D)  $110,100 
A)  $100,000. 
B)  $110,500. 
C)  $105,900. 
D)  $110,100

Question 18

Examples of employees include all of the following EXCEPT

Accepted Answer

A)  secretaries. 
B)  attorneys. 
C)  accounting clerks. 
D)  plant supervisors. 
A)  secretaries. 
B)  attorneys. 
C)  accounting clerks. 
D)  plant supervisors.

Question 19

According to the assumption used in this text, employers are required to withhold Social Security taxes on the first ____ of each employee's earnings.

Accepted Answer

A)  $120,000 
B)  $105,900 
C)  $120,000. 
D)  $110,100 
A)  $120,000 
B)  $105,900 
C)  $120,000. 
D)  $110,100

Question 20

When a single-check for payroll is prepared and deposited into a special payroll bank account, which of the following entries is made to record the deposit?

Accepted Answer

A)  debit Wages and Salaries Expense; credit Cash 
B)  debit Payroll Cash; credit Cash 
C)  debit Cash; credit Payroll Expense 
D)  debit Cash; credit Wages and Salaries Expense 
A)  debit Wages and Salaries Expense; credit Cash 
B)  debit Payroll Cash; credit Cash 
C)  debit Cash; credit Payroll Expense 
D)  debit Cash; credit Wages and Salaries Expense

Exam 8: Payroll Accounting: Employee Earnings and Deductions

The payroll register is a summary of the annual earnings of each employee.

Compensation expressed in terms of hours, weeks, or units produced for skilled or unskilled labor is usually referred to as salary.

A purely manual system of record keeping is one in which all records, journals, and ledgers are prepared by hand.

Compensation normally expressed in biweekly, monthly, or annual terms for managerial or administrative services is called

Payroll expenditures represent a relatively small part of the total expenditures of most companies.

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

The Fair Labor Standards Act requires employees to pay double the regular hourly rate for the time worked on Saturday.

The Social Security Tax Payable account is debited for Social Security taxes withheld and Social Security taxes imposed on the employer.

Under federal law, employers are required to withhold certain amounts from the total earnings of each employee to be applied toward the payment of the employee's federal income tax.

Match the terms with the definitions. -​Gross pay less mandatory and voluntary deductions.

Match the terms with the definitions. -​Requires employers to pay overtime at 1 1/2 times the regular rate to any hourly employee who works over 40 hours in a week.

Both manual and electronic payroll systems require the same payroll input and output.

Any person who agrees to perform a service for a fee and is not subject to the control of those for whom the service is performed is called a(n)

The account that is credited for the Medicare tax withheld from employee's earnings and the Medicare tax imposed on the employer is

Jillian Diaz receives a regular salary of $1,500 a month and is entitled to overtime pay at the rate of one and one-half times the regular hourly rate for any time worked in excess of 40 hours per week. Diaz's overtime pay rate is

Denise Cruz receives a regular salary of $900 a month and is entitled to overtime pay at the rate of one and one-half times the regular hourly rate for any time worked in excess of 40 hours per week. Cruz's overtime rate of pay is

For this text, it is assumed that the maximum amount of earnings subject to FICA taxes is

Examples of employees include all of the following EXCEPT

According to the assumption used in this text, employers are required to withhold Social Security taxes on the first ____ of each employee's earnings.

When a single-check for payroll is prepared and deposited into a special payroll bank account, which of the following entries is made to record the deposit?

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. -Gross pay less mandatory and voluntary deductions.

Match the terms with the definitions. -Requires employers to pay overtime at 1 1/2 times the regular rate to any hourly employee who works over 40 hours in a week.