Question 1

What effect do payroll entries have on a firm's accounting system?

Accepted Answer

A)  They increase the firm's assets. 
B)  They reduce the firm's liabilities. 
C)  They increase the owners' equity. 
D)  They increase the firm's expenses. 
A)  They increase the firm's assets. 
B)  They reduce the firm's liabilities. 
C)  They increase the owners' equity. 
D)  They increase the firm's expenses.

Question 2

What are the General Journal entries that should appear on each pay date?

Accepted Answer

A)  Employee pay accrual and employee pay disbursement 
B)  Employee pay remittance and voluntary deduction remittance 
C)  Employee pay recording and employer share payroll taxes recording 
D)  Employee pay disbursement and voluntary deduction remittance 
A)  Employee pay accrual and employee pay disbursement 
B)  Employee pay remittance and voluntary deduction remittance 
C)  Employee pay recording and employer share payroll taxes recording 
D)  Employee pay disbursement and voluntary deduction remittance

Question 3

Which of the following reports links the accounting and the human resources departments?

Accepted Answer

A)  Form 941 
B)  Payroll register 
C)  Employee earnings record 
D)  Labor reports 
A)  Form 941 
B)  Payroll register 
C)  Employee earnings record 
D)  Labor reports

Question 4

On October 15,Eco Brewers had a balance of $4,390 in its Social Security tax payable account.It posted an additional $4,390 on its October 31 pay date.Since Eco Brewers is a monthly schedule depositor,what entry should appear on November 15 for the remittance of the month's Social Security taxes?

Accepted Answer

A)  Credit $8,780 
B)  Debit $8,780 
C)  Credit $4,390 
D)  Debit $4,390 
A)  Credit $8,780 
B)  Debit $8,780 
C)  Credit $4,390 
D)  Debit $4,390

Question 5

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

Accepted Answer

A)  Cash 
B)  Owners' Capital 
C)  Salaries Payable 
D)  Wages Expense 
A)  Cash 
B)  Owners' Capital 
C)  Salaries Payable 
D)  Wages Expense

Question 6

Besides payroll information,the payroll register contains _________________________________.

Accepted Answer

A)  information about the firm's liabilities 
B)  tax remittance information 
C)  proof of payroll deposits 
D)  the firm's payroll checking account information 
A)  information about the firm's liabilities 
B)  tax remittance information 
C)  proof of payroll deposits 
D)  the firm's payroll checking account information

Question 7

Which of the following is an example of an asset account?

Accepted Answer

A)  Revenue 
B)  Salaries Payable 
C)  Cash 
D)  Payroll Tax Expense 
A)  Revenue 
B)  Salaries Payable 
C)  Cash 
D)  Payroll Tax Expense

Question 8

At the end of the financial period,the payroll accountant records the _____________ of the employee's pay that is earned but not yet paid;in the next financial period,this entry is _______________.

Accepted Answer

A)  Amount;deleted 
B)  Accrual;reversed 
C)  Total;carried forward 
D)  Reversal;accrued 
A)  Amount;deleted 
B)  Accrual;reversed 
C)  Total;carried forward 
D)  Reversal;accrued

Question 9

When a firm has wages earned but not yet paid at the end of a financial reporting period,what must it do to recognize the liabilities and expenses?

Accepted Answer

A)  It must credit the asset accounts for the appropriate payroll amounts. 
B)  It must pay its employees for the wages earned as of that date. 
C)  It must wait until the next financial period to record the payroll data. 
D)  It must create an adjusting entry to recognize the payroll accrual. 
A)  It must credit the asset accounts for the appropriate payroll amounts. 
B)  It must pay its employees for the wages earned as of that date. 
C)  It must wait until the next financial period to record the payroll data. 
D)  It must create an adjusting entry to recognize the payroll accrual.

Question 10

The purpose of the net pay and check number columns in the payroll register is to verify accurate disbursal of payroll.

Accepted Answer

A) True 
 B)False

Question 11

Why do decreases in company profitability decrease in direct proportion to the payroll expenses?

Accepted Answer

A)  Because payroll represents a liability and an expense of the business.The higher payroll expenses are,the lower the profitability will be. 
B)  Because payroll represents an asset and an income of the business.The higher payroll income are,the higher the profitability will be. 
C)  Because payroll represents a liability and an expense of the business.The lower payroll expenses are,the lower the profitability will be. 
D)  Because payroll represents an asset and an income of the business.The lower the payroll expenses are,the higher the profitability will be. 
A)  Because payroll represents a liability and an expense of the business.The higher payroll expenses are,the lower the profitability will be. 
B)  Because payroll represents an asset and an income of the business.The higher payroll income are,the higher the profitability will be. 
C)  Because payroll represents a liability and an expense of the business.The lower payroll expenses are,the lower the profitability will be. 
D)  Because payroll represents an asset and an income of the business.The lower the payroll expenses are,the higher the profitability will be.

Question 12

Which report contains employer share tax expenses for a period?

Accepted Answer

A)  The income statement 
B)  The statement of owners' equity 
C)  The balance sheet 
D)  The labor report 
A)  The income statement 
B)  The statement of owners' equity 
C)  The balance sheet 
D)  The labor report

Question 13

Enchanted Creations has the following data in its Federal withholding tax payable General Ledger account:  
What is the balance of the account as of April 30?

Accepted Answer

A)  Credit $16,495 
B)  Debit $16,495 
C)  Debit $49,485 
D)  Credit $49,485 
A)  Credit $16,495 
B)  Debit $16,495 
C)  Debit $49,485 
D)  Credit $49,485

Question 14

___________ is the transferring of information from the General Journal to the General Ledger.

Accepted Answer

A)  Annotating 
B)  Accruing 
C)  Posting 
D)  Computing 
A)  Annotating 
B)  Accruing 
C)  Posting 
D)  Computing

Question 15

Besides containing the supporting data for periodic tax reports,the employee earnings record serves as a backup in the event of computer failure.

Accepted Answer

A) True 
 B)False

Question 16

When journalizing the employees' pay accrual,the _______________ is/are the debit(s),and the _____________ is one of the credits.

Accepted Answer

A)  Net pay;gross pay 
B)  Payroll tax liabilities;gross pay 
C)  Gross pay;net pay 
D)  Cash account;net pay 
A)  Net pay;gross pay 
B)  Payroll tax liabilities;gross pay 
C)  Gross pay;net pay 
D)  Cash account;net pay

Question 17

Which columns might an employer include to facilitate employer-share payroll tax General Journal entries (select all that apply)?

Accepted Answer

A)  Worker's Compensation 
B)  FUTA 
C)  SUTA 
D)  Employer's Federal Income tax 
A)  Worker's Compensation 
B)  FUTA 
C)  SUTA 
D)  Employer's Federal Income tax

Question 18

The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal.

Accepted Answer

A) True 
 B)False

Question 19

What is the term for transferring data from the General Journal to the General Ledger?

Accepted Answer

A)  Cross-referencing 
B)  Ledgering 
C)  Posting 
D)  Transcribing 
A)  Cross-referencing 
B)  Ledgering 
C)  Posting 
D)  Transcribing

Question 20

Employee earnings records form the link between accounting and the human resources department.

Accepted Answer

A) True 
 B)False

What effect do payroll entries have on a firm's accounting system?

What are the General Journal entries that should appear on each pay date?

Which of the following reports links the accounting and the human resources departments?

On October 15,Eco Brewers had a balance of $4,390 in its Social Security tax payable account.It posted an additional $4,390 on its October 31 pay date.Since Eco Brewers is a monthly schedule depositor,what entry should appear on November 15 for the remittance of the month's Social Security taxes?

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

Besides payroll information,the payroll register contains _________________________________.

Which of the following is an example of an asset account?

At the end of the financial period,the payroll accountant records the _ of the employee's pay that is earned but not yet paid;in the next financial period,this entry is ___.

When a firm has wages earned but not yet paid at the end of a financial reporting period,what must it do to recognize the liabilities and expenses?

The purpose of the net pay and check number columns in the payroll register is to verify accurate disbursal of payroll.

Why do decreases in company profitability decrease in direct proportion to the payroll expenses?

Which report contains employer share tax expenses for a period?

Enchanted Creations has the following data in its Federal withholding tax payable General Ledger account: What is the balance of the account as of April 30?

___________ is the transferring of information from the General Journal to the General Ledger.

Besides containing the supporting data for periodic tax reports,the employee earnings record serves as a backup in the event of computer failure.

When journalizing the employees' pay accrual,the ___ is/are the debit(s),and the _ is one of the credits.

Which columns might an employer include to facilitate employer-share payroll tax General Journal entries (select all that apply)?

The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal.

What is the term for transferring data from the General Journal to the General Ledger?

Employee earnings records form the link between accounting and the human resources department.

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

What effect do payroll entries have on a firm's accounting system?

What are the General Journal entries that should appear on each pay date?

Which of the following reports links the accounting and the human resources departments?

On October 15,Eco Brewers had a balance of $4,390 in its Social Security tax payable account.It posted an additional $4,390 on its October 31 pay date.Since Eco Brewers is a monthly schedule depositor,what entry should appear on November 15 for the remittance of the month's Social Security taxes?

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

Besides payroll information,the payroll register contains _________________________________.

Which of the following is an example of an asset account?

At the end of the financial period,the payroll accountant records the _____________ of the employee's pay that is earned but not yet paid;in the next financial period,this entry is _______________.

When a firm has wages earned but not yet paid at the end of a financial reporting period,what must it do to recognize the liabilities and expenses?

The purpose of the net pay and check number columns in the payroll register is to verify accurate disbursal of payroll.

Why do decreases in company profitability decrease in direct proportion to the payroll expenses?

Which report contains employer share tax expenses for a period?

Enchanted Creations has the following data in its Federal withholding tax payable General Ledger account: What is the balance of the account as of April 30?

___________ is the transferring of information from the General Journal to the General Ledger.

Besides containing the supporting data for periodic tax reports,the employee earnings record serves as a backup in the event of computer failure.

When journalizing the employees' pay accrual,the _______________ is/are the debit(s),and the _____________ is one of the credits.

Which columns might an employer include to facilitate employer-share payroll tax General Journal entries (select all that apply)?

The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal.

What is the term for transferring data from the General Journal to the General Ledger?

Employee earnings records form the link between accounting and the human resources department.

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Filters

At the end of the financial period,the payroll accountant records the _ of the employee's pay that is earned but not yet paid;in the next financial period,this entry is ___.

When journalizing the employees' pay accrual,the ___ is/are the debit(s),and the _ is one of the credits.