Question 1

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  True

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

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 B

Question 4

The ____________________ 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

Fair Labor

Question 5

F.Fuentes operates a business known as Variety Unlimited.Listed below are the name,number of allowances claimed,marital status,total hours worked,and hourly rate of each employee.All hours worked in excess of 40 hours per week are paid at the rate of time and a half.
The employer uses the weekly federal income tax withholding table.Social Security tax is withheld at the rate of 6.2%,Medicare tax is withheld at the rate of 1.45%.All employees have Health Insurance Premiums withheld in the amount of $55.00.Hertz,Jordan,and Pollo each will have $25.00 withheld this payday under a savings bond purchase plan.
Fuentes follows the practice of drawing a single check for the net amount of the payroll and depositing the check in a special payroll account at the bank.Individual paychecks are then drawn for the amount due each employee.The checks issued this payday were numbered consecutively beginning with No.786.
 
 $\begin{array}{c}
\text {Variety Unlimited}\
\text {Payroll information for the week ended December 15,20--}\
\begin{array}{lccccc}
&&&\text { Total } & \text { Regular} & \text {  Cumulative }\
&\text { \# of } & \text { Marital } & \text { Hours } & \text { Hourly } & \text { Earnings }\
 \underline{\text { Name}}& \underline{\text { Allowances}}& \underline{\text { Status }}& \underline{\text {Worked }}& \underline{\text {Rate}}& \underline{\text { thru Dec.8 }}\
 \text {H. Hertz } & 5 & \mathrm{M} & 40 & \$ 34.00 & \$ 86,240 \
 \text {C. Lobel } & 2 & \mathrm{M} & 43 & 14.00 & 27,440 \
 \text { J. Jordan } & 3 & \mathrm{M} & 47 & 11.00 & 21,560 \
 \text {D.  Pollo } & 2 & \mathrm{~S} & 39 & 8.00 & 15,680 \
\text {M.  Perez } & 6 & \mathrm{~S} & 45 & 14.00 & 31,360 \
\end{array}
\end{array}$ Required:
1.Prepare a payroll register for Variety Unlimited for the pay period ended December 15,20--.
2.Assuming that the wages for the week ended December 15 were paid on December 17,enter the payment in the general journal.

Accepted Answer

? ? ? 11ea84ea_4448_8b88_a

Question 6

With ____________________,the employee does not handle the paycheck; payment is made by the employer directly to the employee's bank.

Accepted Answer

The answer of With ____________________,the employee does not handle the...

Question 7

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)withhol ding 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)withhol ding allowance

Question 8

Federal income tax that is withheld each pay period from the employee's earnings is NOT based on the

Accepted Answer

A)  total earnings of the employee. 
B)  marital status of the employee. 
C)  number of withholding allowances claimed by the employee. 
D)  number of sick days. 
A)  total earnings of the employee. 
B)  marital status of the employee. 
C)  number of withholding allowances claimed by the employee. 
D)  number of sick days.

Question 9

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 10

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 11

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)withhol ding 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)withhol ding allowance

Question 12

Match the terms with the definitions.
-A business that sells payroll record-keeping services.

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)withhol ding 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)withhol ding allowance

Question 13

Every individual who performs services for a business is considered to be an employee.

Accepted Answer

A) True 
 B)False

Question 14

Match the terms with the definitions.
-Employers determine the amount to withhold from an employee's gross pay for a specific time period from the appropriate wage-bracket table provided by the Internal Revenue Service.

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)withhol ding 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)withhol ding allowance

Question 15

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

Question 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

The payroll register replaces the general journal in most businesses.

Accepted Answer

A) True 
 B)False

Question 19

The Medicare tax rate is subject to a maximum amount.

Accepted Answer

A) True 
 B)False

Question 20

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.

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

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

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?

The ____________________ 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.

With ____________________,the employee does not handle the paycheck; payment is made by the employer directly to the employee's bank.

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.

Federal income tax that is withheld each pay period from the employee's earnings is NOT based on the

Form W-4 is a(n)

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

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

Match the terms with the definitions. -A business that sells payroll record-keeping services.

Every individual who performs services for a business is considered to be an employee.

Match the terms with the definitions. -Employers determine the amount to withhold from an employee's gross pay for a specific time period from the appropriate wage-bracket table provided by the Internal Revenue Service.

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

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

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

The payroll register replaces the general journal in most businesses.

The Medicare tax rate is subject to a maximum amount.

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

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

Module Accounting For A Professional Service Business The Combination Journal

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Exam 8: Payroll Accounting: Employee Earnings and Deductions

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

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

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?

The ____________________ 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.

With ____________________,the employee does not handle the paycheck; payment is made by the employer directly to the employee's bank.

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.

Federal income tax that is withheld each pay period from the employee's earnings is NOT based on the

Form W-4 is a(n)

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

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

Match the terms with the definitions. -A business that sells payroll record-keeping services.

Every individual who performs services for a business is considered to be an employee.

Match the terms with the definitions. -Employers determine the amount to withhold from an employee's gross pay for a specific time period from the appropriate wage-bracket table provided by the Internal Revenue Service.

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

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

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

The payroll register replaces the general journal in most businesses.

The Medicare tax rate is subject to a maximum amount.

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

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

Module Accounting For A Professional Service Business The Combination Journal

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