Payroll Accounting 2018, 28th Edition by Bernard J. Bieg - Test Bank

Payroll Accounting 2018, 28th Edition by Bernard J. Bieg – Test Bank

Instant Download – Complete Test Bank With Answers

Sample Questions Are Posted Below

1. An employee’s marital status and number of withholding allowances never appear on the payroll register.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.1 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
2. Companies usually provide a separate column in the payroll register to record the employer’s payroll taxes.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.2 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 1Chapter 6
3. An employer will use the payroll register to keep track of an employee’s accumulated wages.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.3 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
4. In order to prepare Forms W-2, an employer would utilize the employee’s earnings record.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.4 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 2Chapter 6
5. Once the journal entry for the payroll is complete, the information is posted to the appropriate general ledger accounts.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.5 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
6. Deductions from gross pay in the payroll register are reflected on the credit side of the journal entry to record the
payroll.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.6 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 3Chapter 6
7. If wages are paid weekly, postings to the employee’s earnings record would be done once a month.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.7 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
8. Each payday, the total of net pays that the employer incurs is the wage expense that must be debited.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.8 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 4Chapter 6
9. Tax withholdings from employees’ pays reduce the amount of the debit to Salary Expense in the payroll entry.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.9 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
10. The wage and salaries expense account is an operating expense account debited for total net pay each payroll period.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.10 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 5Chapter 6
11. FIT Payable is a liability account used to record employees’ withheld federal income tax and also the employer’s
match of that tax.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.11 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
12. A debit to the employees FIT payable account removes the liability for the amount of federal income taxes withheld
from employees’ wages.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.12 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 6Chapter 6
13. Amounts withheld from employees’ wages for health insurance are credited to a liability account.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.13 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
14. When withheld union dues are turned over to the union by the employer, a journal entry is made debiting the liability
account and crediting the cash account.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.14 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 7Chapter 6
15. Under the provisions of the Consumer Credit Protection Act, an employer can discharge an employee simply because
the employee’s wage is subject to garnishment for a single indebtedness.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.15 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
16. Under the Consumer Credit Protection Act, disposable earnings are the earnings remaining after any deductions for
health insurance.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.16 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 8Chapter 6
17. Tips received by employees in excess of tip credit amount are not included as disposable earnings subject to
garnishment
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.17 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/7/2017 8:19 AM
18. Service charges that are passed on to the employee by the employer are not part of the disposable earnings subject to
garnishment.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.18 – LO: 3
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 9Chapter 6
19. The total of the net amount paid to employees each payday is credited to either the cash account or the salaries
payable account.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.19 – LO: 3
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
20. Every state allows employers to make e-payment options as a condition of employment.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.20 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 10Chapter 6
21. Under the Uniform Unclaimed Property Act, any unclaimed paychecks must be turned over to the state after the next
payday.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.21 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
22. FUTA Taxes Payable is an expense account in which are recorded the employer’s federal unemployment taxes.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.22 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 11Chapter 6
23. The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 6-16
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.23 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
24. The payroll taxes account is an expense account that is debited for the FICA, FUTA, and SUTA taxes on the
employer.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.24 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 12Chapter 6
25. The FICA taxes on the employer represent both business expenses and liabilities of the employer.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.25 – LO: 3
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
26. The entry to record the employer’s payroll taxes usually includes credits to the liability accounts for FICA (OASDI
and HI), FUTA, and SUTA taxes.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.26 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 13Chapter 6
27. The employer’s payroll tax expenses are recorded by all employers at the time these taxes are actually paid.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.27 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
28. FICA Taxes Payable—OASDI is a liability account debited for the employer’s portion of the FICA tax.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.28 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 14Chapter 6
29. Since the credit against the FUTA tax (for SUTA contributions) is made on Form 940, the employer’s payroll tax
entries should include the FUTA tax at the gross amount (6.0%).
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.29 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
30. The FUTA tax part of the payroll tax entry is recorded at the net amount (0.6%) of the taxable payroll.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.30 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 15Chapter 6
31. Since FUTA tax is paid only once a quarter, the FUTA tax expense is recorded only at the time of payment.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.31 – LO: 3
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
32. At the time that the entry is made to record the employer’s payroll taxes, the SUTA tax is recorded at the net amount
(0.6%).
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.32 – LO: 3
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 16Chapter 6
33. Since the FUTA tax is a social security tax, it can be charged to the same expense account as the other payroll taxes
on the employer, the payroll taxes account.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.33 – LO: 4
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
34. If employees must contribute to the state unemployment fund, this deduction should be shown in the payroll tax entry.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.34 – LO: 4
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 17Chapter 6
35. When the federal tax deposit is made, the employees’ and employer’s shares of FICA taxes are paid along with the
employees’ FIT taxes withheld.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.35 – LO: 4
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
36. In the adjusting entry to accrue wages at the end of the accounting period, there is no need to credit any tax
withholding accounts.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.36 – LO: 4
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 18Chapter 6
37. The adjusting entry to record the accrued vacation pay at the end of an accounting period includes credits to the tax
withholding liability accounts.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.37 – LO: 5
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
38. Since vacation time is paid when used, there is no need to accrue this time in a liability account at the end of each
accounting period.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.38 – LO: 5
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 19Chapter 6
39. Union Dues Payable is a liability account credited with the deductions made from union members’ wages for their
union dues.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.39 – LO: 5
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
40. Posting to the general ledger for payroll entries is done only at the end of each calendar year.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.40 – LO: 5
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 20Chapter 6
41. Carmen Gaetano worked 46 hours during this payweek. He is paid time-and-a-half for hours over 40 and his pay rate
is $17.90/hour. What was his overtime premium pay for this workweek?
a. $107.40
b. $161.10
c. $50.70
d. $53.70
e. $26.85
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.41 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
42. The employee’s earnings record provides information for each of the following except:
a. completing Forms W-2.
b. completing the journal entry to record the payroll.
c. determining when the accumulated wages of an employee reach cutoff levels.
d. preparing reports required by state unemployment compensation laws.
e. preparing the payroll register.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.42 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 21Chapter 6
43. Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?
a. Payroll Taxes
b. Federal Income Taxes Payable
c. Wages Expense
d. Salaries Payable
e. None of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.43 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
44. The garnishment that takes priority over all others is :
a. a federal tax levy
b. a government student loan
c. a creditor garnishment
d. an administrative wage garnishment
e. a child support order
ANSWER: e
POINTS: 1
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 22Chapter 6
45. Which of the following accounts is an expense account in which an employer records the FICA, FUTA, and SUTA
taxes?
a. Wages Expense
b. Payroll Taxes
c. SUTA Taxes Payable
d. Salaries Payable
e. None of the above
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.44 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
46. Which of the following is not an expense of the employer?
a. FUTA tax
b. FICA tax—HI
c. FICA tax—OASDI
d. SUTA tax
e. Union dues withheld
ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.45 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 23Chapter 6
47. When recording the deposit of FUTA taxes owed, the proper entry is:
a. FUTA Tax Expense
Cash
b. Payroll Taxes
Cash
c. Payroll Taxes
FUTA Taxes Payable
d. FUTA Taxes Payable
Cash
e. FUTA Tax Expense
FUTA Taxes Payable
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.47 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 24Chapter 6
48. The entry made at the end of the accounting period to record wages incurred but unpaid is:
a. Wages Expense
Wages Payable
b. Wages Expense
FICA Taxes Payable—OASDI
FICA Taxes Payable—HI
FIT Payable
Wages Payable
c. Wages Payable
Cash
d. Wages Expense
Cash
e. Wages Expense
Payroll Taxes
Wages Payroll
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.48 – LO: 3
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 25Chapter 6
49. Which of the following items would require an adjusting entry at the end of each accounting period?
a. Garnishment for child support payments
b. Withholdings for a 401(k) plan
c. Vacation pay earned by employees
d. Union dues withheld
e. None of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.49 – LO: 5
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
50. In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the
adjustment would usually be determined by:
a. collecting the timesheets for the days accrued.
b. using the same amount as the prior month’s adjustment.
c. using the wages of the salaried workers only.
d. a percentage of the previous week’s gross payroll.
e. a percentage of the previous week’s net payroll.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: PAYR.BIEG.14.50 – LO: 5
ACCREDITING STANDARDS: AICPA: v1-11 – FN-Reporting
Blooms Taxonomy-5 – Remembering
Business Program-3 – Analytic
Time Estimate-a – 5 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 26Chapter 6
Exhibit 6-1
The totals from the first payroll of the year are shown below.
Total
Earnings
FICA
OASDI
FICA
HI
FIT
W/H
State
Tax
Union
Dues
Net
Pay
$36,195.10 $2,244.10 $524.83 $6,515.00 $361.95 $500.00 $26,049.22
51. Refer to Exhibit 6-1. Journalize the entry to record the payroll.
ANSWER: Wages Expense 36,195.10
FICA Taxes Payable—OASDI 2,244.10
FICA Taxes Payable—HI 524.83
Employees FIT Payable 6,515.00
Employees SIT Payable 361.95
Union Dues Payable 500.00
Cash 26,049.22
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
PREFACE NAME: Exhibit 6-1
LEARNING OBJECTIVES: PAYR.BIEG.14.51 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-10 – FN-Measurement
Blooms Taxonomy-2 – Applying
Business Program-3 – Analytic
Time Estimate-d – 20 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 27Chapter 6
52. Refer to Exhibit 6-1. Journalize the entry to record the employer’s payroll taxes (assume a SUTA rate of 3.7%).
ANSWER: Payroll Taxes 4,325.32
FICA Taxes Payable—OASDI 2,244.10
FICA Taxes Payable—HI 524.83
FUTA Taxes Payable 217.17
SUTA Taxes Payable 1,339.22
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
PREFACE NAME: Exhibit 6-1
LEARNING OBJECTIVES: PAYR.BIEG.14.52 – LO: 1
ACCREDITING STANDARDS: AICPA: v1-10 – FN-Measurement
Blooms Taxonomy-2 – Applying
Business Program-3 – Analytic
Time Estimate-d – 20 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AM
53. Refer to Exhibit 6-1. Journalize the entry to deposit the FICA and FIT taxes.
ANSWER: FICA Taxes Payable—OASDI 4,488.20
FICA Taxes Payable—HI 1,049.66
Employee FIT Payable 6,515.00
Cash 12,052.86
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
PREFACE NAME: Exhibit 6-1
LEARNING OBJECTIVES: PAYR.BIEG.14.53 – LO: 2
ACCREDITING STANDARDS: AICPA: v1-10 – FN-Measurement
Blooms Taxonomy-2 – Applying
Business Program-3 – Analytic
Time Estimate-d – 20 min.
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 28Chapter 6
54. Refer to Exhibit 6-1. Journalize the adjustment for accrued wages for the following Monday, which is the end of
the accounting period. The gross payroll for that day is $7,475.
ANSWER: Wages Expense 7,475.00
Wages Payable 7,475.00
POINTS: 1
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
DATE CREATED: 6/6/2017 10:47 AM
DATE MODIFIED: 6/6/2017 10:47 AMCopyright Cengage Learning. Powered by Cognero. Page 29Chapter 6