Question 1

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

Accepted Answer

The General Journal is a bookkeeping ledger that records each of the company's financial transactions in chronological order.

Question 2

The purpose of the net pay and check number columns in the payroll register is to verify accurate disbursal of payroll.

Accepted Answer

The net pay column in the payroll register shows the amount of money employees receive after all deductions are made, ensuring accurate payment, while the check number column helps track each payment for verification and record-keeping purposes.

Question 3

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

Accepted Answer

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

Question 4

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

Accepted Answer

In the General Ledger, both debit and credit columns are used to record transactions, and the balance of the account is determined by the difference between the total debits and total credits, not just the debit column.

Question 5

How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like
FICA, FUTA, and SUTA?
A)Form W-2
B)Employee earnings record
C)Form W-4
D)Payroll register

Accepted Answer

The employee earnings record is a detailed document that tracks each employee's year-to-date earnings, deductions, and net pay, which is essential for calculating taxes like FICA, FUTA, and SUTA accurately.

Question 6

A debit always decreases the balance of an account.

Accepted Answer

A debit increases the balance of asset and expense accounts, while it decreases the balance of liability, equity, and revenue accounts.

Question 7

The information in the payroll register forms the basis for entries in the Employee Earnings Records and the
General Journal.

Accepted Answer

The payroll register summarizes each employee's earnings and deductions for a specific period, and this information is used to update the Employee Earnings Records with individual earnings and deductions details. Additionally, the summarized totals from the payroll register are used to make entries in the General Journal for recording the overall payroll expenses and liabilities in the company's financial accounts.

Question 8

Besides containing the supporting data for periodic tax reports, the employee earnings record serves as a backup in the event of computer failure.

Accepted Answer

The employee earnings record contains detailed information about each employee's earnings and deductions, serving as a crucial backup for reconstructing payroll information in case of computer or system failure.

Question 9

Why is it important to have columns on the payroll register title "Earnings subject to Federal Withholding" and
"Earnings subject to FICA"?
A)Both columns contain information about the employer's tax matching responsibilities.
B)It facilitates accuracy in employee payroll tax computations.
C)It allows payroll employees to divert funds into faux accounts.
D)It adds complexity to the payroll register.

Accepted Answer

These columns are crucial for ensuring that the correct amounts are withheld from employees' paychecks for federal and FICA taxes, thereby ensuring accuracy in payroll tax computations.

Question 10

Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll, one for the employer's share of the taxes.

Accepted Answer

The first entry records the gross wages earned by employees, along with any deductions for taxes and other withholdings, to reflect the net pay to employees. The second entry records the employer's payroll expenses, such as the employer's share of Social Security and Medicare taxes, federal and state unemployment taxes, and any other employer-paid benefits, to accurately reflect the total cost of payroll to the employer.

Question 11

To which items is information from the payroll register transferred? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A)Employee earnings record
B)General Journal
C)Labor reports
D)Company website

Accepted Answer

Information from the payroll register is typically transferred to the employee earnings record to update individual employee pay records, the general journal to record the financial transactions related to payroll in the company's accounts, and labor reports to analyze and manage labor costs and productivity. It is not standard practice to transfer payroll information to a company website due to privacy and security concerns.

Question 12

Columns included in the payroll register to compute net pay may include which of the following? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A)Medicare tax
B)Employee address
C)Employee signature
D)Garnishments

Accepted Answer

Medicare tax and garnishments are deductions from an employee's gross pay to compute net pay. Employee address and signature are not related to the calculation of net pay.

Question 13

The payroll register is identical for each company.

Accepted Answer

The payroll register varies between companies as it is tailored to each company's specific payroll needs, including the number of employees, pay rates, deductions, and benefits.

Question 14

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

Accepted Answer

Employee earnings records contain detailed information about each employee's pay, deductions, and benefits, which are crucial for both accounting purposes (such as payroll processing and financial reporting) and human resources management (such as benefits administration and compliance with labor laws).

Question 15

Which of the following is true about the fundamental accounting equation?
A)It may be expressed as assets + liabilities = owners' equity.
B)It is always expressed as assets = liabilities - owners' equity.
C)It must remain in balance at all times.
D)One side of the equation must equal zero.

Accepted Answer

The fundamental accounting equation is Assets = Liabilities + Owners' Equity, which must always remain in balance to ensure the accuracy of financial statements.

Question 16

How does the payroll register connect with the employees' earnings records?
A)Both documents contain year-to-date totals of taxes.
B)Both documents contain information about the employee's address and job title.
C)Both documents contain information from multiple pay periods.
D)Both documents contain details of employee earnings, deductions, and disbursement for a pay period.

Accepted Answer

The payroll register is a master document that summarizes the earnings, deductions, and net pay for all employees for a specific pay period, while the employees' earnings records detail the same information but on an individual basis. Both documents contain details of employee earnings, deductions, and disbursement for each pay period, making them interconnected in terms of the financial information they provide about employees' compensation.

Question 17

Which of the following columns would be used as part of a general journal entry? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A)Net pay
B)Total overtime earnings
C)Earnings subject to FICA tax
D)Health insurance payable

Accepted Answer

The answer of Which of the following columns would be...

Question 18

Which of the following best describes the purpose of the payroll register?
A)It is a list of all persons and companies that the company pays money during a period.
B)It is an individual register maintained for each employee, listing of all the payroll information.
C)It is a worksheet that accountants use to ensure payroll accuracy.
D)It is a report that becomes published with other ﬁnancial reports.

Accepted Answer

The payroll register is essentially a worksheet used by accountants or payroll specialists to calculate and verify the accuracy of payroll before it is processed. This includes details such as gross wages, deductions, and net pay for each pay period.

Question 19

Which columns might an employer include to facilitate employer-share payroll tax General Journal entries? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A)Worker's Compensation
B)FUTA
C)SUTA
D)Employer's Federal Income tax

Accepted Answer

FUTA (Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act) are taxes paid by employers to fund the unemployment benefits pool. These are employer-share payroll taxes, unlike Federal Income Tax, which is withheld from the employee's earnings. Worker's Compensation is an insurance payment, not a payroll tax.

Question 20

Which of the following reports links the accounting and the human resources departments?
A)Employee earnings record
B)Payroll register
C)Labor reports
D)Form 941

Accepted Answer

The answer of Which of the following reports links the...

Quiz 7: Payroll Project

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

The purpose of the net pay and check number columns in the payroll register is to verify accurate disbursal of payroll.

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

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

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

A debit always decreases the balance of an account.

The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal.

Besides containing the supporting data for periodic tax reports, the employee earnings record serves as a backup in the event of computer failure.

Why is it important to have columns on the payroll register title "Earnings subject to Federal Withholding" and "Earnings subject to FICA"?

Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll, one for the employer's share of the taxes.

The payroll register is identical for each company.

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

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

How does the payroll register connect with the employees' earnings records?

Which of the following best describes the purpose of the payroll register?

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