Question 1

The entry made at the end of the accounting period to record wages incurred but unpaid is:

Accepted Answer

A) Wages Expense Wages Payable 
B) Wages Expense FICA Taxes Payable-OASDI
FICA Taxes Payable-HI
FIT Payable
Wages Payable 
C) Wages Payable Cash 
D) Wages Expense Cash 
E) Wages Expense Payroll Taxes
Wages Payroll 
A) Wages Expense Wages Payable 
B) Wages Expense FICA Taxes Payable-OASDI
FICA Taxes Payable-HI
FIT Payable
Wages Payable 
C) Wages Payable Cash 
D) Wages Expense Cash 
E) Wages Expense Payroll Taxes
Wages Payroll A

Question 2

An employer will use the payroll register to keep track of an employee's accumulated wages.

Accepted Answer

A) True 
 B)False  False

Question 3

The adjusting entry to record the accrued vacation pay at the end of an accounting period includes credits to the tax withholding liability accounts.

Accepted Answer

A) True 
 B)False  False

Question 4

The garnishment that takes priority over all others is:

Accepted Answer

A) a federal tax levy. 
B) a government student loan. 
C) a creditor garnishment. 
D) an administrative wage garnishment. 
E) a child support order. 
A) a federal tax levy. 
B) a government student loan. 
C) a creditor garnishment. 
D) an administrative wage garnishment. 
E) a child support order.

Question 5

The FUTA tax part of the payroll tax entry is recorded at the net amount (0.6%) of the taxable payroll.

Accepted Answer

A) True 
 B)False

Question 6

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

Accepted Answer

A) True 
 B)False

Question 7

A debit to the employees FIT payable account removes the liability for the amount of federal income taxes withheld from employees' wages.

Accepted Answer

A) True 
 B)False

Question 8

If employees must contribute to the state unemployment fund, this deduction should be shown in the payroll tax entry.

Accepted Answer

A) True 
 B)False

Question 9

The wage and salaries expense account is an operating expense account debited for total net pay each payroll period.

Accepted Answer

A) True 
 B)False

Question 10

When the federal tax deposit is made, the employees' and employer's shares of FICA taxes are paid along with the employees' FIT taxes withheld.

Accepted Answer

A) True 
 B)False

Question 11

Tax withholdings from employees' pays reduce the amount of the debit to Salary Expense in the payroll entry.

Accepted Answer

A) True 
 B)False

Question 12

Posting to the general ledger for payroll entries is done only at the end of each calendar year.

Accepted Answer

A) True 
 B)False

Question 13

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?

Accepted Answer

A) Payroll Taxes 
B) Federal Income Taxes Payable 
C) Wages Expense 
D) Salaries Payable 
E) None of the above 
A) Payroll Taxes 
B) Federal Income Taxes Payable 
C) Wages Expense 
D) Salaries Payable 
E) None of the above

Question 14

At the time that the entry is made to record the employer's payroll taxes, the SUTA tax is recorded at the net amount (0.6%).

Accepted Answer

A) True 
 B)False

Question 15

Since vacation time is paid when used, there is no need to accrue this time in a liability account at the end of each accounting period.

Accepted Answer

A) True 
 B)False

Question 16

In order to prepare Forms W-2, an employer would utilize the employee's earnings record.

Accepted Answer

A) True 
 B)False

Question 17

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

Accepted Answer

A) True 
 B)False

Question 18

The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA (OASDI and HI), FUTA, and SUTA taxes.

Accepted Answer

A) True 
 B)False

Question 19

In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by:

Accepted Answer

A) collecting the timesheets for the days accrued. 
B) using the same amount as the prior month's adjustment. 
C) using the wages of the salaried workers only. 
D) a percentage of the previous week's gross payroll. 
E) a percentage of the previous week's net payroll. 
A) collecting the timesheets for the days accrued. 
B) using the same amount as the prior month's adjustment. 
C) using the wages of the salaried workers only. 
D) a percentage of the previous week's gross payroll. 
E) a percentage of the previous week's net payroll.

Question 20

In the adjusting entry to accrue wages at the end of the accounting period, there is no need to credit any tax withholding accounts.

Accepted Answer

A) True 
 B)False

The entry made at the end of the accounting period to record wages incurred but unpaid is:

An employer will use the payroll register to keep track of an employee's accumulated wages.

The adjusting entry to record the accrued vacation pay at the end of an accounting period includes credits to the tax withholding liability accounts.

The garnishment that takes priority over all others is:

The FUTA tax part of the payroll tax entry is recorded at the net amount (0.6%) of the taxable payroll.

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

A debit to the employees FIT payable account removes the liability for the amount of federal income taxes withheld from employees' wages.

If employees must contribute to the state unemployment fund, this deduction should be shown in the payroll tax entry.

The wage and salaries expense account is an operating expense account debited for total net pay each payroll period.

When the federal tax deposit is made, the employees' and employer's shares of FICA taxes are paid along with the employees' FIT taxes withheld.

Tax withholdings from employees' pays reduce the amount of the debit to Salary Expense in the payroll entry.

Posting to the general ledger for payroll entries is done only at the end of each calendar year.

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?

At the time that the entry is made to record the employer's payroll taxes, the SUTA tax is recorded at the net amount (0.6%).

Since vacation time is paid when used, there is no need to accrue this time in a liability account at the end of each accounting period.

In order to prepare Forms W-2, an employer would utilize the employee's earnings record.

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA (OASDI and HI), FUTA, and SUTA taxes.

In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by:

In the adjusting entry to accrue wages at the end of the accounting period, there is no need to credit any tax withholding accounts.

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Unemployment Compensation Taxes

Filters

Exam 6: Analyzing and Journalizing Payroll

The entry made at the end of the accounting period to record wages incurred but unpaid is:

An employer will use the payroll register to keep track of an employee's accumulated wages.

The adjusting entry to record the accrued vacation pay at the end of an accounting period includes credits to the tax withholding liability accounts.

The garnishment that takes priority over all others is:

The FUTA tax part of the payroll tax entry is recorded at the net amount (0.6%) of the taxable payroll.

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

A debit to the employees FIT payable account removes the liability for the amount of federal income taxes withheld from employees' wages.

If employees must contribute to the state unemployment fund, this deduction should be shown in the payroll tax entry.

The wage and salaries expense account is an operating expense account debited for total net pay each payroll period.

When the federal tax deposit is made, the employees' and employer's shares of FICA taxes are paid along with the employees' FIT taxes withheld.

Tax withholdings from employees' pays reduce the amount of the debit to Salary Expense in the payroll entry.

Posting to the general ledger for payroll entries is done only at the end of each calendar year.

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?

At the time that the entry is made to record the employer's payroll taxes, the SUTA tax is recorded at the net amount (0.6%).

Since vacation time is paid when used, there is no need to accrue this time in a liability account at the end of each accounting period.

In order to prepare Forms W-2, an employer would utilize the employee's earnings record.

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA (OASDI and HI), FUTA, and SUTA taxes.

In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by:

In the adjusting entry to accrue wages at the end of the accounting period, there is no need to credit any tax withholding accounts.

The Need for Payroll and Personal Records

Computing Wages and Salaries

Social Security Taxes

Income Tax Withholding

Unemployment Compensation Taxes

Filters