Question 1

When journalizing the employees' pay accrual, the ________ is/are the debit(s) , and the ________ is one of the credits.

Accepted Answer

A)   Net pay; gross pay
B)   Payroll tax liabilities; gross pay
C)   Gross pay; net pay
D)   Cash account; net payE) All of the above
F) B) and D)

Question 2

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.E) A) and B)
F) A) and C)

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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.E) B) and C)
F) A) and D)

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 numbersE) B) and C)
F) All of the above

Question 6

________ is the transferring of information from the General Journal to the General Ledger.

Accepted Answer

A)   Annotating
B)   Accruing
C)   Posting
D)   ComputingE) B) and D)
F) B) and C)

Question 7

How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA?

Accepted Answer

A)   Form W-4
B)   Form W-2
C)   Payroll register
D)   Employee earnings recordE) A) and D)
F) A) and C)

Question 8

What is a use of a firm's labor trend reports? (Select all that apply.)

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.E) C) and D)
F) A) and B)

Question 9

Which columns might an employer include to facilitate employer-share payroll tax General Journal entries? (Select all that apply.)

Accepted Answer

A)   Worker's Compensation
B)   FUTA
C)   SUTA
D)   Employer's Federal Income taxE) B) and D)
F) None of the above

Question 10

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

Accepted Answer

A)   Cash
B)   Owners' Capital
C)   Salaries Payable
D)   Wages ExpenseE) None of the above
F) B) and C)

Question 11

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 reportsE) B) and D)
F) A) and B)

Question 12

In the General Ledger, the debit column reflects the balance of the account.

Accepted Answer

A) True 
 B)False

Question 13

Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial period.

Accepted Answer

A) True 
 B)False

Question 14

The General Journal contains records of a firm's financial transactions, which appear chronologically.

Accepted Answer

A) True 
 B)False

Question 15

To which items is information from the payroll register transferred? (Select all that apply.)

Accepted Answer

A)   Employee earnings record
B)   General Journal
C)   Labor reports
D)   Company websiteE) C) and D)
F) A) and B)

Question 16

Which of the following reports links the accounting and the human resources departments?

Accepted Answer

A)   Form 941
B)   Payroll register
C)   Employee earnings record
D)   Labor reportsE) All of the above
F) B) and C)

Question 17

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.E) B) and D)
F) All of the above

Question 18

Which report contains employer share tax expenses for a period?

Accepted Answer

A)   The income statement
B)   The statement of owners' equity
C)   The balance sheet
D)   The labor reportE) A) and B)
F) All of the above

Question 19

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 expenseE) C) and D)
F) B) and C)

Question 20

The payroll register contains ________.

Accepted Answer

A)   the employee's name, social security number, and address
B)   the name of the firm and the payroll accountant
C)   the beginning and ending dates of the pay period
D)   the total gross pay, deductions, and net pay during the periodE) A) and C)
F) C) and D)

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

What is a use of a firm's labor trend reports? (Select all that apply.)

Correct AnswerverifiedShow Answer

When journalizing the employees' pay accrual, the ________ is/are the debit(s) , and the ________ is one of the credits.

Correct AnswerverifiedShow Answer

________ is the transferring of information from the General Journal to the General Ledger.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Which columns might an employer include to facilitate employer-share payroll tax General Journal entries? (Select all that apply.)

Correct AnswerverifiedShow Answer

The payroll register contains ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The General Journal contains records of a firm's financial transactions, which appear chronologically.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA?

Correct AnswerverifiedShow Answer

Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial period.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the General Ledger, the debit column reflects the balance of the account.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To which items is information from the payroll register transferred? (Select all that apply.)

Correct AnswerverifiedShow Answer

Which of the following reports links the accounting and the human resources departments?

Correct AnswerverifiedShow Answer

Which report contains employer share tax expenses for a period?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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When journalizing the employees' pay accrual, the is/are the debit(s) , and the is one of the credits.

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