Chap 7 Exercise Set A Flashcards
Which column exists in the employees’ earnings records but not in the payroll register?
Multiple Choice
- YTD net pay
- 401(k) contributions
- Net pay
- Gross pay
YTD net pay
What is the connection between the employees’ earnings records and payroll tax reporting?
Check all that apply:
- Employees’ earnings records contain year-to-date gross pay, which reflects when employees reach tax bases.
- Employees’ earnings records contain details of payroll tax reporting and may be considered as source documents.
- Employees’ earnings records do not connect with payroll tax reporting.
- Employees’ earnings records may be used to ensure the accuracy of payroll tax reporting.
- Employees’ earnings records contain year-to-date gross pay, which reflects when employees reach tax bases.
- Employees’ earnings records contain details of payroll tax reporting and may be considered as source documents.
- Employees’ earnings records do not connect with payroll tax reporting.
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A debit increases which of the following types of accounts?
Check all that apply:
- Assets
- Liabilities
- Expenses
- Revenue
- ## Assets
- ## Expenses
The total of the Gross Earnings column of the payroll register for a given pay period will appear in which account for the payroll-related general journal entry?
Multiple Choice
- Expenses
- Cash
- Salaries and Wages Expense
- Salaries and Wages Payable
Salaries and Wages Expense
What is always true about the General Ledger?
Check all that apply:
- The General Ledger contains information about the individual accounts used in General Journal transactions.
- The General Ledger is a way to represent monthly groupings of entire General Journal entries.
- A debit to an account in a General Journal transaction is a debit to that account in the General Ledger.
- The process of transferring amounts from the General Journal to the General Ledger is called posting.
- The General Ledger contains information about the individual accounts used in General Journal transactions.
- A debit to an account in a General Journal transaction is a debit to that account in the General Ledger.
- The process of transferring amounts from the General Journal to the General Ledger is called posting.
How does a payroll accountant use the information in the General Ledger?
Check all that apply:
- Payroll expenses contained in the General Ledger are not used to make personnel decisions.
- The payroll accountant uses General Ledger balances to determine the effectiveness of individual employees.
- The account balances form the basis for accounting reports.
- General Ledger account balances aggregate data to determine payroll costs.
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- The account balances form the basis for accounting reports.
- General Ledger account balances aggregate data to determine payroll costs.
Which of the following accounts would appear on the income statement?
Check all that apply:
- 401(k) employer contributions expense
- 401(k) contributions payable
- Social Security tax payable
- Payroll taxes expense
- 401(k) employer contributions expense
- Payroll taxes expense
What is always true about trial balance reports?
Check all that apply:
- The report is prepared for a range of dates.
- The total of the debit column must equal the total of the credit column.
- All accounts with balances are included in the report.
- Only accounts with activity during the period are included on the report.
- The total of the debit column must equal the total of the credit column.
- ## All accounts with balances are included in the report.
The purpose of a labor report is to do what?
Check all that apply:
- Promote analysis of payroll expenses.
- Reflect all expenses of a firm.
- Report an individual employee’s regular time and overtime.
- Update managers about payroll on a daily basis.
- Promote analysis of payroll expenses.
- ## Report an individual employee’s regular time and overtime.
Which law governs the fiduciary responsibility that employers have with regards to employees’ payroll deductions?
Multiple Choice
- ERISA
- FICA
- ACA
- FLSA
ERISA
