Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

What is a use of a firm's labor trend reports? (You may select more than one answer. )

Accepted Answer

A) It allows managers to determine the effect of employee labor on departmental profits. 
B) It allows managers to predict future labor costs. 
C) It is a report designed for external stakeholders. 
D) It highlights issues and results of seasonal labor. 
A) It allows managers to determine the effect of employee labor on departmental profits. 
B) It allows managers to predict future labor costs. 
C) It is a report designed for external stakeholders. 
D) It highlights issues and results of seasonal labor.

Question 3

Columns included in the payroll register to compute net pay may include which of the following? (You may select more than one answer. )

Accepted Answer

A) Medicare tax 
B) Employee address 
C) Employee signature 
D) Garnishments 
A) Medicare tax 
B) Employee address 
C) Employee signature 
D) Garnishments

Question 4

The purpose of the ________ is to record all the financial transactions of a firm.

Accepted Answer

A) General Ledger 
B) T-account 
C) Payroll register 
D) General Journal 
A) General Ledger 
B) T-account 
C) Payroll register 
D) General Journal

Question 5

Which of the following payroll items is not reflected on the income statement?

Accepted Answer

A) Federal withholding tax payable 
B) Health insurance expense 
C) Salaries and wages expense 
D) Payroll taxes expense 
A) Federal withholding tax payable 
B) Health insurance expense 
C) Salaries and wages expense 
D) Payroll taxes expense

Question 6

In which order are transactions listed in the General Journal?

Accepted Answer

A) Alphabetically 
B) Order of importance 
C) Numerically 
D) Chronologically 
A) Alphabetically 
B) Order of importance 
C) Numerically 
D) Chronologically

Question 7

What is the primary purpose of a labor report?

Accepted Answer

A) It depicts the ideal distribution of labor in a firm. 
B) It designates where labor is used in a firm. 
C) It communicates departmental profitability. 
D) It is a report designed to be read by parties external to the firm. 
A) It depicts the ideal distribution of labor in a firm. 
B) It designates where labor is used in a firm. 
C) It communicates departmental profitability. 
D) It is a report designed to be read by parties external to the firm.

Question 8

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.

Question 9

It is important that the payroll accountant understand the flow of the payroll transactions,especially when working with ________.

Accepted Answer

A) The payroll register 
B) The employee earnings record 
C) Accounting software packages 
D) Payroll tax reports 
A) The payroll register 
B) The employee earnings record 
C) Accounting software packages 
D) Payroll tax reports

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) $1,715.56 
A) $2,572.59 
B) $1,875.98 
C) $1,582.39 
D) $1,715.56

Question 11

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 12

How does the payroll register connect with the employees' earnings records?

Accepted Answer

A) Both documents contain information about the employee's address and job title. 
B) Both documents contain details of employee earnings,deductions,and disbursement for a pay period. 
C) Both documents contain year-to-date totals of taxes. 
D) Both documents contain information from multiple pay periods. 
A) Both documents contain information about the employee's address and job title. 
B) Both documents contain details of employee earnings,deductions,and disbursement for a pay period. 
C) Both documents contain year-to-date totals of taxes. 
D) Both documents contain information from multiple pay periods.

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

What is a use of a firm's labor trend reports? (You may select more than one answer. )

Columns included in the payroll register to compute net pay may include which of the following? (You may select more than one answer. )

The purpose of the ________ is to record all the financial transactions of a firm.

Which of the following payroll items is not reflected on the income statement?

In which order are transactions listed in the General Journal?

What is the primary purpose of a labor report?

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

It is important that the payroll accountant understand the flow of the payroll transactions,especially when working with ________.

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?

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 .

How does the payroll register connect with the employees' earnings records?

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

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

What is a use of a firm's labor trend reports? (You may select more than one answer. )

Columns included in the payroll register to compute net pay may include which of the following? (You may select more than one answer. )

The purpose of the ________ is to record all the financial transactions of a firm.

Which of the following payroll items is not reflected on the income statement?

In which order are transactions listed in the General Journal?

What is the primary purpose of a labor report?

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

It is important that the payroll accountant understand the flow of the payroll transactions,especially when working with ________.

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?

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 ________.

How does the payroll register connect with the employees' earnings records?

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

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 .