Ch 6 Payroll practice test Questions and
Answers 100% Pass
14. At the time that the entry is made to record the employers payroll taxes, the SUTA
tax is recorded at the net amount (0.6%).
A) True
B) False - ✔✔B) False
15. The adjusting entry to record the accrued vacation pay at the end of an accounting
period includes credits to the tax withholding liability accounts.
A) True
B) False - ✔✔B) False
30. When recording the deposit of FUTA taxes owed, the proper entry is:
A) FUTA Tax Expense- Cash
B) Payroll Taxes- Cash
C) Payroll Taxes- FUTA Taxes Payable
D) FUTA Taxes Payable- Cash
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,E) FUTA Tax Expense- FUTA Taxes Payable - ✔✔D) FUTA Taxes Payable- Cash
1. An employer will use the payroll register to keep track of an employee's accumulated
wages.
A) True
B) False - ✔✔B) False
2. Once the journal entry for the payroll is complete, the information is posted to the
appropriate general ledger accounts.
A) True
B) False - ✔✔A) True
3. 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 - ✔✔A) True
4. Amounts withheld from employees' wages for health insurance are credited to a
liability account.
A) True
B) False - ✔✔A) True
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, 5. Tips received by employees are included as disposable earnings subject to
garnishment for child support.
A) True
B) False - ✔✔A) True
6. FUTA Taxes Payable is an expense account in which are recorded the employer's
federal unemployment taxes.
A) True
B) False - ✔✔B) False
7. The FICA taxes on the employer represent both business expenses and liabilities of
the employer.
A) True
B) False - ✔✔A) True
8. Since FUTA tax is paid only once a quarter, the FUTA tax expense is recorded only at
the time of payment.
A) True
B) False - ✔✔B) False
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Answers 100% Pass
14. At the time that the entry is made to record the employers payroll taxes, the SUTA
tax is recorded at the net amount (0.6%).
A) True
B) False - ✔✔B) False
15. The adjusting entry to record the accrued vacation pay at the end of an accounting
period includes credits to the tax withholding liability accounts.
A) True
B) False - ✔✔B) False
30. When recording the deposit of FUTA taxes owed, the proper entry is:
A) FUTA Tax Expense- Cash
B) Payroll Taxes- Cash
C) Payroll Taxes- FUTA Taxes Payable
D) FUTA Taxes Payable- Cash
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,E) FUTA Tax Expense- FUTA Taxes Payable - ✔✔D) FUTA Taxes Payable- Cash
1. An employer will use the payroll register to keep track of an employee's accumulated
wages.
A) True
B) False - ✔✔B) False
2. Once the journal entry for the payroll is complete, the information is posted to the
appropriate general ledger accounts.
A) True
B) False - ✔✔A) True
3. 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 - ✔✔A) True
4. Amounts withheld from employees' wages for health insurance are credited to a
liability account.
A) True
B) False - ✔✔A) True
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, 5. Tips received by employees are included as disposable earnings subject to
garnishment for child support.
A) True
B) False - ✔✔A) True
6. FUTA Taxes Payable is an expense account in which are recorded the employer's
federal unemployment taxes.
A) True
B) False - ✔✔B) False
7. The FICA taxes on the employer represent both business expenses and liabilities of
the employer.
A) True
B) False - ✔✔A) True
8. Since FUTA tax is paid only once a quarter, the FUTA tax expense is recorded only at
the time of payment.
A) True
B) False - ✔✔B) False
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