Deck 11: Merchandising Corporation: Payroll

Question 1

When creating a new account to record a new loan, enter the loan amount as:

A)an opening balance
B)investment
C)income
D)a separate transaction

Answer 1

D

Question 2

A short term loan to be repaid within one year is classified as a(n):

A)Other Current Asset
B)Other Current Liability
C)Expense
D)Owner's Due

Answer 2

B

Question 3

To enable payroll:

A)From the Company menu > Employees > Add Payroll
B)From the Employee menu > Start Payroll
C)From the Edit menu > Preferences > Payroll and Employees
D)None of the above

Answer 3

C

Question 4

The employer must match which of the following taxes paid by an employee:

A)Medicare
B)Federal Unemployment
C)State Income Tax Withholding
D)The employer must match all of the above

Question 5

To view the payroll entry in the journal, go to Report Center > ________

A)Customers and Jobs
B)Company and Financial
C)Accountant and Taxes
D)None of the above

Question 6

The steps in processing payroll include all of the following activities except:

A)Write Checks
B)Enter Time
C)Print Checks
D)Create Paychecks

Question 7

Which one of the following payroll services automatically calculates the tax deductions?

A)QuickBooks Basic Payroll
B)QuickBooks Assisted Payroll
C)QuickBooks Enhanced Payroll
D)All of the above

Question 8

When standard checks are used for pay checks, paystubs are printed by selecting:

A)Employee menu > Print Pay Stubs
B)File menu > Print Forms > Pay Stubs
C)Banking menu > Print Forms > Pay Stubs
D)Company menu > Print Checks > Pay Stubs

Question 9

Which order are payroll tasks are typically completed?

A)Enter Time > Process Payroll Forms > Pay Employees > Pay Payroll Liabilities
B)Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms
C)Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Pay Employees
D)Enter Time > Pay Payroll Liabilities > Pay Employees > Process Payroll Forms

Question 10

The QuickBooks Tax Form Worksheets provide information to complete:

A)employee pay checks
B)sales tax forms
C)payroll tax forms
D)the Income Statement

Question 11

You can obtain a copy of Circular E to use for payroll preparation from:

A)The Employee section of the Home page
B)The Employee Center of the Home page
C)The QuickBooks website: www.quickbooks.com
D)The IRS website: www.irs.gov

Question 12

Which icon is not in the Employees section of the Home page when a company file is set to use manual payroll calculations?

A)Enter Time
B)Pay Employees
C)Pay Liabilities
D)Payroll Forms

Question 13

The Payroll Summary report can be accessed from:

A)The Employee section of the Home page
B)The Reports Center > Employees & Payroll
C)The Reports Center > Payroll Processing
D)All the above

Question 14

Wages paid to an employee are recorded as:

A)Payroll expense
B)Payroll liabilities
C)Payroll payable
D)Payroll revenue

Question 15

The QuickBooks Payroll Setup allows you to:

A)Set employee defaults for information common to all employees
B)Enter employee information
C)Set the payment schedule for withholding payments
D)All the above

Question 16

All of the following are payroll tax liabilities owed to outside agencies except:

A)Federal Income Taxes
B)Unemployment Taxes
C)Net Pay
D)State Income Taxes

Question 17

When creating paychecks using QuickBooks, you deduct withholdings from employees' pay for all of the following except:

A)State income taxes
B)Medicare
C)City income taxes
D)None of the above

Question 18

The day the check is prepared is the:

A)Check Date
B)Pay Period End Date
C)The last day the employee works in the pay period
D)The last day of the pay period

Question 19

Which form is used to manually calculate tax withholdings and payroll taxes?

A)Form 490
B)Form 491
C)IRS Circular E
D)None of the above

Question 20

Taxes are withheld from paychecks for:

A)Employees
B)Independent Contractors
C)Owner's withdrawals
D)All of the above

Question 21

Payroll taxes a company must pay are recorded as:

A)Payroll expense
B)Payroll liabilities
C)Payroll payable
D)Payroll revenue

Question 22

The steps for manually processing payroll tax forms are:

A)Click the Process Payroll Forms icon > Print the payroll tax forms
B)Print management reports > Locate payroll tax forms > Transfer the amounts in the management reports to the tax forms
C)Print financial statements > Locate payroll tax forms > Transfer the amounts in the financial statements to the tax forms
D)Print payroll reports > Locate payroll tax forms > Transfer the amounts in the payroll reports to the tax forms

Question 23

The Payroll Summary report:

A)Summarizes the amounts paid to employees
B)Summarizes the amounts paid in payroll taxes
C)May be accessed using the Reports Center
D)All the above
Short Answer Questions

Question 24

Withholdings from an employee paycheck are recorded as:

A)Payroll expense
B)Payroll liabilities
C)Payroll payable
D)Payroll revenue

Question 25

Payroll liabilities are based on:

A)Calendar months
B)Pay period
C)Check dates
D)The company's fiscal year

Question 26

List 3 (three) types for payroll liabilities and who is responsible for funding them.

Question 27

Briefly describe how you manually process payroll forms.