8.1   Learning Objective 8-1

 

1) Prepaid Worker’s Compensation Insurance is what type of account?

A) Asset

B) Expense

C) Liability

D) Revenue

 

2) What type of an account is Wages and Salaries Payable?

A) Asset

B) Liability

C) Revenue

D) Expense

 

3) The Wages and Salaries Expense account would be used to record:

A) net earnings for the office workers.

B) a credit to the amount owed to the office workers.

C) gross earnings for the office workers.

D) a debit for the amount of net pay owed to the office workers.

 

4) Wages and Salaries Payable would be used to record:

A) gross earnings of the employees.

B) net earnings of the employees not paid.

C) cumulative earnings of the employees

D) the paid portion of the earnings.

5) Payroll Cash is a(n):

A) revenue.

B) liability.

C) asset.

D) expense.

 

6) What type of account is Payroll Tax Expense?

A) Asset

B) Liability

C) Revenue

D) Expense

 

7) The information needed to make the journal entries to record the wages and salaries expense comes from:

A) form W-2.

B) the look-back period.

C) the payroll register.

D) form 941.

 

8) The account for Payroll Tax Expense includes all of the following except:

A) federal unemployment taxes.

B) FICA taxes (OASDI and Medicare) paid by the employer for the latest payroll period.

C) state unemployment taxes.

D) federal income tax.

9) The debit amount to Payroll Tax Expense represents:

A) the employer’s portion of the payroll taxes.

B) the employees’ portion of the payroll taxes.

C) the employer’s and employees’ portion of the payroll taxes.

D) None of the above are correct.

 

10) What is debited if State Unemployment Tax Payable (SUTA) is credited?

A) Payroll Tax Expense

B) Cash

C) Salaries Payable

D) Salaries Expense

 

 

 

 



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