Mort 165 management Grande 7-9
The information from the payroll register is transferred to the:
employee's earnings record
SUTA taxes are generally paid by:
employers
The FUTA tax is more commonly known as the:
federal unemployment tax.
Which of the following items may not be a cost to employ a person?
health insurance
Salaries are paid to managers and administrators and usually are a portion of an annual salary figure. Wages are usually considered
hourly earnings paid for hours worked. However, in actual practice, the terms are often interchangeable.
In preparing the bank reconciliation, it is discovered that a check for the $87.00 telephone bill was written correctly for that amount but listed in error in the journal at $78.00. This error will require a:
journal entry to correct the balance of the Cash account.
The SUTA tax (State Unemployment Tax Act) provides the resources to pay the:
state unemployment benefits.
The business or person upon whose account a check is drawn is called:
the drawer.
The proper treatment on a bank reconciliation of a note receivable collected for the firm by the bank is to show the note as a(an):
addition to the book balance per checkbook.
If the Petty Cash fund is not replenished at the end of the accounting reporting period:
the income statement and the balance sheet will not be correct.
Gross earnings is:
the total earnings of an employee before any payroll deductions have been taken.
Generally employers are required to withhold federal taxes from the gross earnings of employees. The amount withheld may be determined by each of the following items except:
age of the employee.
Net pay:
also called take-home-pay, is the total amount received after all deductions have been subtracted from gross earnings.
A check written for $43.00 was entered in the records with a credit to the Cash account for $34.00. On the bank reconciliation, the correction of the error will require:
an additional $9.00 deduction to the checkbook cash balance.
When a bank reduces the depositor's checking account for service charges or check printing charges, the bank....
debits the depositor's account with the bank.
Gross earnings this pay period total $75,000. If the current total FUTA tax and SUTA tax rate is 5.5% for the business due to the current merit rating, and the total payroll for employees who have earnings under the $7,000 ceiling totals $23,500, what will be the employer's total unemployment tax obligation for this pay period?
$1,292.50 (23,500/ 5.5%)
An employee worked a total of 56 hours for a 7 day week, working 8 hours on Saturday at time-and-one-half, and 8 hours on Sunday at double time. If the employee is paid a regular wage of $8.00 per hour, the gross earnings for the period will total:
$544
Ceilings for both SUTA and FUTA taxes are currently:
$7,000
The federal portion of the 6.2% federal unemployment tax rate is:
0.8%.
Deposits of federal withholdings, Social Security taxes and Medicare taxes may be made using Form ____:
8109
Form ___ is an annual report summarizing the total unemployment taxes deposited and paid for the past calendar year.
940
For effective cash control, the petty cash cashier will use:
A Voucher System
An endorsement consisting only of a depositor's name stamp or signature is called a:
Blank endorsement
When the check is issued for the payment of SUTA taxes, SUTA Tax Payable is debited and _____ is credited.
Cash
For effective cash control, deposits should be made:
Daily
The bank on which the check is drawn is called the :
Drawer
The following items is not a tax on the employer?
Employee income tax
The FUTA tax (Federal Unemployment Tax Act) is a federal tax paid by the:
Employer
By law, federal taxes must be withheld from the gross earnings of employees. These taxes are:
FICA, Medicare, and Federal Income Tax.
The law that sets the minimum wage and the 40-hour work week is the:
Fair Labor Standards Act
Under the __________ all hours worked in excess of the normal 40-hour week are generally paid at time and one-half the regular hourly rate.
Fair Labor Standards Act (often called the Federal Wage Hour Law)
The following is never a deduction from the gross earnings of an employee?
Federal unemployment tax
In many states, those employers who have very few layoffs and few claims for unemployment benefits receive a:
Merit rating
Self-employment income is the ____ income of a trade or business run by an individual.
NET INCOME
For good cash control, the custody of cash should be _____ with the record-keeping of cash.
Seperated
The FICA tax is commonly referred to as the:
Social Security tax
Which of the following would require a debit to the Petty Cash account?
The Petty Cash account is being increased.
Employee Roberta Smiles clocked 48 hours this week by working her regular five days (40 hours), and then returning for a full 8 hours on Sunday. Roberta's pay rate is $10.50 per hour, and Sunday is considered a double-time day by her employer. Her total gross earnings will be:
The total gross earnings will be $588.00.
Self-employed individuals pay about _____ the amount of Social Security and Medicare taxes compared to what they would pay if classified as a regular employee.
Twice
The transmittal of wage and tax statement, due the last day of February along with copy A of each employees W-2 form, is called a:
W-3
Replenishing the petty cash fund will require:
a debit to the expenses or assets for which the petty cash was used
The bookkeeper recorded a payment by check for the purchase of store supplies as a debit to Store Supplies and a credit to Cash for $1,340.56. The check was recorded by the bank at its correct amount of $3,140.56. Prior to the preparation of the bank reconciliation, the error would cause:
a possibility that the checking account might become overdrawn.
The proper treatment of a deposit recorded by the business but not yet recorded by the bank is to report the deposit on the bank reconciliation as a(n):
addition to the balance per bank statement.
Both cash overages and shortages are cause for:
attention by management.
The total earnings-to-date information for each employee will be found in:
both the employee's earnings record and the payroll register.
FICA taxes on employee earnings are paid by:
both the employer and the employee.
The cash register cash count totals $5,102. The cash register sales tape reports sales for the day of $5,103. As a result of these totals, there is a:
cash shortage of $1
The proper entry to establish a Petty Cash fund is to:
debit Petty Cash and credit Cash.
The Petty Cash cashier reported the following Petty Cash receipts: office supplies, $30.00; store supplies, $19.00; and cash left in the petty cash box, $.50. The Petty Cash account has a $50.00 balance. The entry to replenish the Petty Cash is:
office supplies, debit $30.00; Store Supplies, debit $19.00; Cash Short and Over, debit $.50; Cash, credit $49.50
The payroll entry for each pay period is recorded in the general journal:
or the combination journal of the business.
A business with several employees on the payroll should maintain as a feature of good cash control a special:
payroll checking account.
A business that has few claims for unemployment payments against their account:
will have a low experience-rating and pay a lower amount for unemployment taxes.
