Question 1

Which of the following is true about the fundamental accounting equation?

Accepted Answer

A)  It must remain in balance at all times. 
B)  It is always expressed as assets = liabilities - owners' equity. 
C)  One side of the equation must equal zero. 
D)  It may be expressed as assets + liabilities = owners' equity. 
A)  It must remain in balance at all times. 
B)  It is always expressed as assets = liabilities - owners' equity. 
C)  One side of the equation must equal zero. 
D)  It may be expressed as assets + liabilities = owners' equity. A

Question 2

In the following payroll transaction,what is the amount of the net pay?

Accepted Answer

A)  $399,472.63 
B)  $2,349,839.00 
C)  $93,993.56 
D)  $1,551,383.86 
A)  $399,472.63 
B)  $2,349,839.00 
C)  $93,993.56 
D)  $1,551,383.86 D

Question 3

Frellies Gym has a credit balance of $31,485.27 in its Wages and Salaries Payable General Ledger account as of August 16.If the pay date is August 16,what transaction should appear in the Wages and Salaries Payable General Ledger account on that date?

Accepted Answer

A)  Debit $31,485.27 
B)  Credit $31,485.27 
C)  Debit $62,970.54 
D)  Credit $62,970.54 
A)  Debit $31,485.27 
B)  Credit $31,485.27 
C)  Debit $62,970.54 
D)  Credit $62,970.54 A

Question 4

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 5

How does a debit balance in the wages and salaries expense account affect a firm's income statement?

Accepted Answer

A)  A debit balance will increase the expenses of the firm's income statement.This will increase the total expenses of the firm and decrease the net income of the firm. 
B)  A debit balance will decrease the expenses of the firm's income statement.This will increase the total incomes of the firm and decrease the net income of the firm. 
C)  A debit balance will increase the expenses of the firm's income statement.This will decrease the total expenses of the firm and increase the net income of the firm. 
D)  A debit balance will increase the income of the firm's income statement.This will increase the total expenses of the firm and increase the net income of the firm. 
A)  A debit balance will increase the expenses of the firm's income statement.This will increase the total expenses of the firm and decrease the net income of the firm. 
B)  A debit balance will decrease the expenses of the firm's income statement.This will increase the total incomes of the firm and decrease the net income of the firm. 
C)  A debit balance will increase the expenses of the firm's income statement.This will decrease the total expenses of the firm and increase the net income of the firm. 
D)  A debit balance will increase the income of the firm's income statement.This will increase the total expenses of the firm and increase the net income of the firm.

Question 6

Why is it important to have columns on the payroll register title "Earnings subject to Federal Withholding" and "Earnings subject to FICA"?

Accepted Answer

A)  It adds complexity to the payroll register. 
B)  Both columns contain information about the employer's tax matching responsibilities. 
C)  It facilitates accuracy in employee payroll tax computations. 
D)  It allows payroll employees to divert funds into faux accounts. 
A)  It adds complexity to the payroll register. 
B)  Both columns contain information about the employer's tax matching responsibilities. 
C)  It facilitates accuracy in employee payroll tax computations. 
D)  It allows payroll employees to divert funds into faux accounts.

Question 7

Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll,one for the employer's share of the taxes.

Accepted Answer

A) True 
 B)False

Question 8

Zipperle Company has the following payroll information for the pay period ending September 18,20XX:
  Which items would be debited in the General Journal entry to record the employees' share of the payroll?

Accepted Answer

A)  401(k)contributions 
B)  Garnishment 
C)  Gross pay 
D)  Net pay 
A)  401(k)contributions 
B)  Garnishment 
C)  Gross pay 
D)  Net pay

Question 9

Which of the following is an example of a liability account?

Accepted Answer

A)  Cash 
B)  Payroll Taxes Expense 
C)  Salaries and Wages Expense 
D)  FUTA Payable 
A)  Cash 
B)  Payroll Taxes Expense 
C)  Salaries and Wages Expense 
D)  FUTA Payable

Question 10

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)  $1,715.66 
A)  $2,572.59 
B)  $1,875.98 
C)  $1,582.39 
D)  $1,715.66

Question 11

What does the term "billable time" mean as it pertains to payroll accounting?

Accepted Answer

A)  It is employee labor that may be billed to customers. 
B)  It is employee labor that does not pertain to labor on customer jobs. 
C)  It is non-employee labor that the company must pay. 
D)  It is non-traceable labor that a company must absorb as overhead. 
A)  It is employee labor that may be billed to customers. 
B)  It is employee labor that does not pertain to labor on customer jobs. 
C)  It is non-employee labor that the company must pay. 
D)  It is non-traceable labor that a company must absorb as overhead.

Question 12

If a firm accrues the payroll due but not paid at the end of a financial period,what should it do on the first day of the next financial period?

Accepted Answer

A)  It should create a reversing entry in the General Journal. 
B)  It should disburse the accrued pay to the employees. 
C)  It should create a reminder about the accrual to ensure accuracy of computations on the next pay date. 
D)  It should make a note to create the reversing entry at the end of the next financial period. 
A)  It should create a reversing entry in the General Journal. 
B)  It should disburse the accrued pay to the employees. 
C)  It should create a reminder about the accrual to ensure accuracy of computations on the next pay date. 
D)  It should make a note to create the reversing entry at the end of the next financial period.

Question 13

Rushing River Boats has the following data in its Social Security tax payable General Ledger account:  
For the entry on January 31,what does the J4 signify?

Accepted Answer

A)  It is the fourth entry in the General Journal on that date. 
B)  The transaction appears on page four of the General Journal. 
C)  It is the fourth repetition of the same entry. 
D)  The account appears fourth in the list of liability accounts. 
A)  It is the fourth entry in the General Journal on that date. 
B)  The transaction appears on page four of the General Journal. 
C)  It is the fourth repetition of the same entry. 
D)  The account appears fourth in the list of liability accounts.

Question 14

The payroll register contains ______________________________________.

Accepted Answer

A)  the employee's name,social security number,and address 
B)  the name of the firm and the payroll accountant 
C)  the beginning and ending dates of the pay period. 
D)  the total gross pay,deductions,and net pay during the period 
A)  the employee's name,social security number,and address 
B)  the name of the firm and the payroll accountant 
C)  the beginning and ending dates of the pay period. 
D)  the total gross pay,deductions,and net pay during the period

Question 15

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 16

Which of these accounts is increased by a debit (select all that apply?

Accepted Answer

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

Question 17

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 18

Which of the following best describes the purpose of the payroll register?

Accepted Answer

A)  It is a list of all persons and companies that the company pays money during a period. 
B)  It is a report that becomes published with other financial reports. 
C)  It is a worksheet that accountants use to ensure payroll accuracy. 
D)  It is an individual register maintained for each employee,listing of all the payroll information. 
A)  It is a list of all persons and companies that the company pays money during a period. 
B)  It is a report that becomes published with other financial reports. 
C)  It is a worksheet that accountants use to ensure payroll accuracy. 
D)  It is an individual register maintained for each employee,listing of all the payroll information.

Question 19

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

Question 20

In general,how are the expenses associated with the payroll accountant's labor allocated in a firm?

Accepted Answer

A)  They are billed directly to a customer. 
B)  They are allocated to one department. 
C)  They are reported as part of the firm's overhead. 
D)  They are billed directly to each department manager. 
A)  They are billed directly to a customer. 
B)  They are allocated to one department. 
C)  They are reported as part of the firm's overhead. 
D)  They are billed directly to each department manager.

Which of the following is true about the fundamental accounting equation?

In the following payroll transaction,what is the amount of the net pay?

Frellies Gym has a credit balance of $31,485.27 in its Wages and Salaries Payable General Ledger account as of August 16.If the pay date is August 16,what transaction should appear in the Wages and Salaries Payable General Ledger account on that date?

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

How does a debit balance in the wages and salaries expense account affect a firm's income statement?

Why is it important to have columns on the payroll register title "Earnings subject to Federal Withholding" and "Earnings subject to FICA"?

Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll,one for the employer's share of the taxes.

Zipperle Company has the following payroll information for the pay period ending September 18,20XX: Which items would be debited in the General Journal entry to record the employees' share of the payroll?

Which of the following is an example of a liability account?

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?

What does the term "billable time" mean as it pertains to payroll accounting?

If a firm accrues the payroll due but not paid at the end of a financial period,what should it do on the first day of the next financial period?

Rushing River Boats has the following data in its Social Security tax payable General Ledger account: For the entry on January 31,what does the J4 signify?

The payroll register contains ______________________________________.

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

Which of these accounts is increased by a debit (select all that apply?

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?

Which of the following best describes the purpose of the payroll register?

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

In general,how are the expenses associated with the payroll accountant's labor allocated in a firm?

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Filters

Exam 6: Payroll Register, employees Earning Records, and Accounting System Entries

Which of the following is true about the fundamental accounting equation?

In the following payroll transaction,what is the amount of the net pay?

Frellies Gym has a credit balance of $31,485.27 in its Wages and Salaries Payable General Ledger account as of August 16.If the pay date is August 16,what transaction should appear in the Wages and Salaries Payable General Ledger account on that date?

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

How does a debit balance in the wages and salaries expense account affect a firm's income statement?

Why is it important to have columns on the payroll register title "Earnings subject to Federal Withholding" and "Earnings subject to FICA"?

Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll,one for the employer's share of the taxes.

Zipperle Company has the following payroll information for the pay period ending September 18,20XX: Which items would be debited in the General Journal entry to record the employees' share of the payroll?

Which of the following is an example of a liability account?

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?

What does the term "billable time" mean as it pertains to payroll accounting?

If a firm accrues the payroll due but not paid at the end of a financial period,what should it do on the first day of the next financial period?

Rushing River Boats has the following data in its Social Security tax payable General Ledger account: For the entry on January 31,what does the J4 signify?

The payroll register contains ______________________________________.

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

Which of these accounts is increased by a debit (select all that apply?

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?

Which of the following best describes the purpose of the payroll register?

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

In general,how are the expenses associated with the payroll accountant's labor allocated in a firm?

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Filters