Question 1

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 2

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.

Question 3

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 4

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 5

In the following General Journal transaction,to what do the numbers 101 and 301 refer?

Accepted Answer

A) General journal numbers 
B) Employee numbers 
C) General Ledger account numbers 
D) Transaction numbers 
A) General journal numbers 
B) Employee numbers 
C) General Ledger account numbers 
D) Transaction numbers

Question 6

The ________ is the master document that contains an employee's marital status,deductions,and year-to-date earnings.

Accepted Answer

A) Payroll register 
B) Form W-4 
C) Employee earnings record 
D) Personnel file 
A) Payroll register 
B) Form W-4 
C) Employee earnings record 
D) Personnel file

Question 7

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 8

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 9

What is true about the trial balance?

Accepted Answer

A) It contains a detailed listing of every transaction during a period. 
B) It may contain whatever accounts the accountant wishes to include. 
C) Payroll accounts do not appear on it because of their changeable nature. 
D) The total of the debits must equal the total of the credits. 
A) It contains a detailed listing of every transaction during a period. 
B) It may contain whatever accounts the accountant wishes to include. 
C) Payroll accounts do not appear on it because of their changeable nature. 
D) The total of the debits must equal the total of the credits.

Question 10

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 11

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 12

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date:
 
When the firm remits the union dues for this pay period,what is the correct General Journal entry?

Accepted Answer

A) Debit Cash $6,556.46;Credit Union Dues Payable $4,683.19 
B) Debit Union Dues Payable $4,683.19;Credit Cash $4,683.19 
C) Debit Cash $4,683.19;Credit Union Dues Payable $4,683.19 
D) Debit Union Dues Payable $4,683.19;Credit Cash $6,556.46 
A) Debit Cash $6,556.46;Credit Union Dues Payable $4,683.19 
B) Debit Union Dues Payable $4,683.19;Credit Cash $4,683.19 
C) Debit Cash $4,683.19;Credit Union Dues Payable $4,683.19 
D) Debit Union Dues Payable $4,683.19;Credit Cash $6,556.46

Question 13

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 incomes 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 incomes 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 14

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 15

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 16

Rushing River Boats has the following data in its Social Security tax payable General Ledger account:
 
It is a monthly schedule depositor.What entry should appear in the General Ledger to reflect the tax remittance on February 15?

Accepted Answer

A) Credit $420 
B) Debit $420 
C) Credit $1,620 
D) Debit $1,620 
A) Credit $420 
B) Debit $420 
C) Credit $1,620 
D) Debit $1,620

Question 17

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 18

Dooley Publishing has the following payroll data for its July 1 pay date:
 
How much Federal withholding tax was deducted from employees' pay?

Accepted Answer

A) $15,203.14 
B) $42,083.87 
C) $32,115.48 
D) $29,391.98 
A) $15,203.14 
B) $42,083.87 
C) $32,115.48 
D) $29,391.98

Question 19

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

Question 20

Which of the following financial report(s)reflect the effects of debit and credit General Journal entries used in payroll accounting? (You may select more than one answer. )

Accepted Answer

A) Income Statement 
B) Trial Balance 
C) Balance Sheet 
D) Labor Distribution Report 
A) Income Statement 
B) Trial Balance 
C) Balance Sheet 
D) Labor Distribution Report

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

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

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?

In the following General Journal transaction,to what do the numbers 101 and 301 refer?

The ________ is the master document that contains an employee's marital status,deductions,and year-to-date earnings.

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

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

What is true about the trial balance?

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

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

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: When the firm remits the union dues for this pay period,what is the correct General Journal entry?

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

Besides payroll information,the payroll register contains ________.

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?

Rushing River Boats has the following data in its Social Security tax payable General Ledger account: It is a monthly schedule depositor.What entry should appear in the General Ledger to reflect the tax remittance on February 15?

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?

Dooley Publishing has the following payroll data for its July 1 pay date: How much Federal withholding tax was deducted from employees' 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 the following financial report(s)reflect the effects of debit and credit General Journal entries used in payroll accounting? (You may select more than one answer. )

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Fringe Benefits and Voluntary Deductions

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Filters

Exam 7: The Payroll Register, employees Earnings Records, and Accounting System Entries

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

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

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?

In the following General Journal transaction,to what do the numbers 101 and 301 refer?

The ________ is the master document that contains an employee's marital status,deductions,and year-to-date earnings.

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

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

What is true about the trial balance?

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

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

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: When the firm remits the union dues for this pay period,what is the correct General Journal entry?

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

Besides payroll information,the payroll register contains ________.

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?

Rushing River Boats has the following data in its Social Security tax payable General Ledger account: It is a monthly schedule depositor.What entry should appear in the General Ledger to reflect the tax remittance on February 15?

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?

Dooley Publishing has the following payroll data for its July 1 pay date: How much Federal withholding tax was deducted from employees' 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 the following financial report(s)reflect the effects of debit and credit General Journal entries used in payroll accounting? (You may select more than one answer. )

Payroll Practices and System Fundamentals

Payroll System Procedures

Gross Pay Computation

Fringe Benefits and Voluntary Deductions

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Filters