Question 1

Trey Morgan is an employee who is paid monthly.For the month of January of the current year,he earned a total of $4,538.The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45% for both the employee and the employer.The amount of federal income tax withheld from his earnings was $680.70.His net pay for the month is:

Accepted Answer

A)  $3,510.14
B)  $3,857.30
C)  $4,190.84
D)  $4,538.00
E)  $3,162.98F) A) and B)
G) A) and C)

Question 2

All of the following are true of known liabilities except:

Accepted Answer

A)  Include accounts payable,notes payable,and payroll.
B)  Are obligations set by agreements,contracts,or laws.
C)  Are measurable.
D)  Are definitely determinable.
E)  May depend on some future event occurring.F) B) and C)
G) A) and C)

Question 3

Which of the following is not true regarding the unemployment insurance program?

Accepted Answer

A)  It requires withholding from the employee wages.
B)  It is administered by each state.
C)  It provides unemployment benefits to qualified workers.
D)  It adjusts rates paid by employers based on their merit rating.
E)  It is a joint federal and state program.F) B) and D)
G) B) and E)

Question 4

A company has three employees.Total salaries for the month of January were $8,000.The federal income tax rate for all employees is 15%.The FICA-social security tax rate is 6.2% and the FICA-Medicare tax rate is 1.45%.Calculate the amount of employee taxes withheld and prepare the company's journal entry to record the January payroll assuming these were the only deductions.

Accepted Answer

The answer of A company has three employees.Total salaries for...

Question 5

Deacon Company provides you with following information related to payroll transactions for the month of May.Prepare journal entries to record the transactions for May.  a.Recorded the May payroll using the payroll register information given above.
b.Recorded the employer's payroll taxes resulting from the May payroll.The company had a merit rating that reduces its state unemployment tax rate to 3.5% of the first $7,000 paid each employee.Only $42,000 of the current months salaries are subject to unemployment taxes.The federal rate is 0.6%.
c.Issued a check to Reliant Bank in payment of the May FICA and employee taxes.
d.Issued a check to the state for the payment of the SUTA taxes for the month of May.
e.Issued a check to Reliant Bank in payment of the employer's quarterly FUTA taxes for the first quarter in the amount of $1,020.

Accepted Answer

The answer of Deacon Company provides you with following information...

Question 6

The annual Federal Unemployment Tax Return is:

Accepted Answer

A)  Form 940.
B)  Form 1099.
C)  Form 104.
D)  Form W-2.
E)  Form W-4.F) A) and D)
G) B) and D)

Question 7

The deferred income tax liability:

Accepted Answer

A)  Results from the income tax expense reported on the income statement differing from the amount of income taxes payable to the government.
B)  Is a contingent liability.
C)  Can result in a deferred income tax asset.
D)  Is never recorded.
E)  Is recorded whether or not the difference between taxable income and financial accounting income is permanent or temporary.F) A) and B)
G) C) and D)

Question 8

_________________ are probable future payments of assets or services that a company is presently obligated to make as a result of past transactions or events.

Accepted Answer

The answer of _________________ are probable future payments of assets...

Question 9

Obligations to be paid within one year or the company's operating cycle,whichever is longer,are:

Accepted Answer

A)  Current assets.
B)  Current liabilities.
C)  Earned revenues.
D)  Operating cycle liabilities.
E)  Bills.F) A) and E)
G) B) and E)

Question 10

Accounts payable are:

Accepted Answer

A)  Amounts owed to suppliers for products and/or services purchased on credit.
B)  Long-term liabilities.
C)  Estimated liabilities.
D)  Not usually due on specific dates.
E)  Always payable within 30 days.F) A) and D)
G) D) and E)

Question 11

The payroll records of a company provided the following data for the current weekly pay period ended March 12.  Assume that the Social Security portion of the FICA taxes is 6.2% on the first $117,000 and the Medicare portion is 1.45% of all wages paid to each employee for this pay period.The federal and state unemployment tax rates are 0.8% and 5.4%,respectively,on the first $7,000 paid to each employee.Calculate the net pay for each employee.

Accepted Answer

The answer of The payroll records of a company provided...

Question 12

The difference between the amount borrowed and the amount repaid is referred to as _______________.

Accepted Answer

The answer of The difference between the amount borrowed and...

Question 13

Times interest earned is calculated by:

Accepted Answer

A)  Multiplying interest expense by income.
B)  Dividing interest expense by income before interest expense.
C)  Dividing income before interest expense and income taxes by interest expense.
D)  Multiplying interest expense by income before interest expense.
E)  Dividing income before interest expense by interest expense and income taxes.F) All of the above
G) A) and E)

Question 14

Gross pay less all deductions is called ____________________.

Accepted Answer

The answer of Gross pay less all deductions is called...

Question 15

A _____________________ shows the pay period dates,hours worked,gross pay,deductions,and net pay of each employee for every pay period.

Accepted Answer

The answer of A _____________________ shows the pay period dates,hours...

Question 16

Employer payroll taxes:

Accepted Answer

A)  Are added expenses beyond that for the wages and salaries earned by employees.
B)  Represent the federal taxes withheld from employees.
C)  Represent the social security taxes withheld from employees.
D)  Are paid by the employee.
E)  Are payable for up to a maximum $117,000 of employee earnings.F) A) and D)
G) A) and C)

Question 17

The amount of federal income taxes withheld from an employee's paycheck is determined by:

Accepted Answer

A)  Current earnings for the pay period and number of withholding allowances the employee claims.
B)  The employer's merit rating.
C)  The amount of social security taxes withheld.
D)  Multiplying the gross pay by 6.2%.
E)  Tax tables provided by the state in which the employee works.F) A) and C)
G) B) and D)

Question 18

An employee earned $62,500 during the year working for an employer.The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%.The current FUTA tax rate is 0.6%,and the SUTA tax rate is 5.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.What is the amount of total unemployment taxes the employee must pay?

Accepted Answer

A)  $101.50
B)  $56.00
C)  $378.00
D)  $434.00
E)  $0.00F) A) and B)
G) D) and E)

Question 19

When a company is obligated for sales taxes payable,it is reported as a(n) :

Accepted Answer

A)  Estimated liability.
B)  Contingent liability.
C)  Current liability.
D)  Business expense.
E)  Long-term liability.F) All of the above
G) A) and D)

Question 20

The total compensation an employee earns including wages,salaries,commissions,bonuses,and any compensation earned before deductions such as taxes is called ___________________.

Accepted Answer

The answer of The total compensation an employee earns including...

Exam 11: Current Liabilities and Payroll Accounting

The amount of federal income taxes withheld from an employee's paycheck is determined by:

Correct Answer
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Which of the following is not true regarding the unemployment insurance program?

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When a company is obligated for sales taxes payable,it is reported as a(n) :

Correct Answer
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The deferred income tax liability:

Correct Answer
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A _____________________ shows the pay period dates,hours worked,gross pay,deductions,and net pay of each employee for every pay period.

Correct Answer
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Times interest earned is calculated by:

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Gross pay less all deductions is called ____________________.

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All of the following are true of known liabilities except:

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The annual Federal Unemployment Tax Return is:

Correct Answer
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The difference between the amount borrowed and the amount repaid is referred to as _______________.

Correct Answer
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The total compensation an employee earns including wages,salaries,commissions,bonuses,and any compensation earned before deductions such as taxes is called ___________________.

Correct Answer
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Obligations to be paid within one year or the company's operating cycle,whichever is longer,are:

Correct Answer
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_________________ are probable future payments of assets or services that a company is presently obligated to make as a result of past transactions or events.

Correct Answer
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Accounts payable are:

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Employer payroll taxes:

Correct Answer
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Exam 11: Current Liabilities and Payroll Accounting

The amount of federal income taxes withheld from an employee's paycheck is determined by:

Correct AnswerverifiedShow Answer

Which of the following is not true regarding the unemployment insurance program?

Correct AnswerverifiedShow Answer

When a company is obligated for sales taxes payable,it is reported as a(n) :

Correct AnswerverifiedShow Answer

The deferred income tax liability:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A _____________________ shows the pay period dates,hours worked,gross pay,deductions,and net pay of each employee for every pay period.

Correct AnswerverifiedShow Answer

Times interest earned is calculated by:

Correct AnswerverifiedShow Answer

Gross pay less all deductions is called ____________________.

Correct AnswerverifiedShow Answer

All of the following are true of known liabilities except:

Correct AnswerverifiedShow Answer

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The annual Federal Unemployment Tax Return is:

Correct AnswerverifiedShow Answer

The difference between the amount borrowed and the amount repaid is referred to as _______________.

Correct AnswerverifiedShow Answer

The total compensation an employee earns including wages,salaries,commissions,bonuses,and any compensation earned before deductions such as taxes is called ___________________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Obligations to be paid within one year or the company's operating cycle,whichever is longer,are:

Correct AnswerverifiedShow Answer

_________________ are probable future payments of assets or services that a company is presently obligated to make as a result of past transactions or events.

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Correct AnswerverifiedShow Answer

Accounts payable are:

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Employer payroll taxes:

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