Accounting Chapter 8 Questions

If Wages and Salaries Payable is debited, what account would most likely be credited? A) Cash B) Wages and Salaries Expense C) Payroll Expense D) SUTA Payable

A

Prepaid Worker's Compensation Insurance is what type of account? A) Asset B) Expense C) Liability D) Revenue

A

The debit amount to Payroll Tax Expense represents: A) the employer's portion of the payroll taxes. B) the employees' portion of the payroll taxes. C) the employer's and employees' portion of the payroll taxes. D) None of the above are correct.

A

The employer's total FICA, SUTA, and FUTA tax is recorded as: A) a debit to Payroll Tax Expense. B) a credit to Payroll Tax Expense. C) a credit to Payroll Tax Payable. D) a debit to Payroll Tax Payable.

A

The entry to record the payment of taxes withheld from employees and FICA taxes would be to: A) credit Cash; debit FICA-Social Security Payable, FICA-Medicare Payable, and Federal Income Tax Payable. B) debit Cash; credit FICA-Social Security Payable, FICA-Medicare Payable, and Federal Income Tax Payable. C) credit Cash; credit FICA-Social Security Payable, FICA-Medicare Payable, and Federal Income Tax Payable. D) None of these answers are correct.

A

The employer records deductions from the employee's paycheck: A) as debits to expense accounts. B) as credits to liability accounts until paid. C) as debits to asset accounts until paid. D) as credits to capital accounts.

B

Wages and Salaries Expense is: A) equal to net pay. B) equal to gross pay. C) equal to the employer's taxes. D) None of the above are correct.

B

Wages and Salaries Payable would be used to record: A) gross earnings of the employees. B) net earnings of the employees not paid. C) cumulative earnings of the employees D) the paid portion of the earnings.

B

What type of an account is Wages and Salaries Payable? A) Asset B) Liability C) Revenue D) Expense

B

The Wages and Salaries Expense account would be used to record: A) net earnings for the office workers. B) a credit to the amount owed to the office workers. C) gross earnings for the office workers. D) a debit for the amount of net pay owed to the office workers.

C

The correct journal entry to record the payment of FUTA is to: A) debit Cash; credit FUTA Payable. B) debit FUTA Expense; credit Cash. C) debit FUTA Payable; credit Cash. D) debit Cash; credit FUTA Expense.

C

The entry to record the payroll tax expense would include: A) a credit to Federal Income Taxes Payable. B) a credit to Cash. C) a credit to FICA (OASDI and Medicare) Taxes Payable. D) a credit to Wages Payable.

C

The information needed to make the journal entries to record the wages and salaries expense comes from: A) form W-2. B) the look-back period. C) the payroll register. D) form 941.

C

Form 941 is filed: A) monthly. B) annually. C) weekly. D) quarterly.

D

The account for Payroll Tax Expense includes all of the following except: A) federal unemployment taxes. B) FICA taxes (OASDI and Medicare) paid by the employer for the latest payroll period. C) state unemployment taxes. D) federal income tax.

D

True or False: Both employer and employee contribute to FICA-OASDI and SUTA tax.

F

True or False: There is no limit on the amount of taxes paid for SUTA

F

True or False: Different deposit rules apply to employers based on the amount collected and owed by that employer.

T

True or False: The payroll tax expense is recorded at the same time the payroll is recorded.

T

True or False:An employer must always use a calendar year for payroll purposes.

T