Payroll Accounting 2016 26th Edition by Bieg – Test Bank

Payroll Accounting 2016 26th Edition by Bieg – Test Bank

Chapter 06

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

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

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

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

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

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

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

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

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

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

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

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

13. Amounts withheld from employees’ wages for health insurance are credited to a liability account.
a. True
b. False
ANSWER: True
POINTS: 1

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

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