PAYROLL ACCOUNTING: EMPLOYEE EARNINGS
AND DEDUCTIONS EXAM QUESTIONS AND
ANSWERS 100% CORRECT!!!
, The account, ___________ _____________ ____________ ____________ , should be
credited for the total income tax withheld from an employee's earnings. - ANSWER
Employee Income Tax Payable
An employee's total earnings are also known as _____________ _____________. -
ANSWER gross pay
Compensation for managerial or administrative services is called ____________. -
ANSWER salary
Payroll expenditures represent a relatively small part of the total expenditures of most
companies. - ANSWER False
The Fair Labor Standards Act provides that all employees covered by the act must be
paid one and one-half times the regular rate for all hours worked over 40 per week. -
ANSWER
The Fair Labor Standards Act requires employees to pay double the regular hourly rate
for the time worked on Saturday.
True - ANSWER False
Compensation expressed in terms of hours, weeks, or units produced for skilled or
unskilled labor is usually referred to as salary. - ANSWER False
Companies must accumulate payroll data both for the business as a whole and for each
employee. - ANSWER True
Compensation for managerial or administrative services usually is expressed in
biweekly, monthly, or annual terms and is called wages. - ANSWER False
Every individual who performs services for a business is considered to be an employee.
- ANSWER False
The various government laws and regulations regarding employee deductions,
employer payroll taxes, payroll records, and payroll reports apply only to employees and
not to independent contractors. - ANSWER True
AND DEDUCTIONS EXAM QUESTIONS AND
ANSWERS 100% CORRECT!!!
, The account, ___________ _____________ ____________ ____________ , should be
credited for the total income tax withheld from an employee's earnings. - ANSWER
Employee Income Tax Payable
An employee's total earnings are also known as _____________ _____________. -
ANSWER gross pay
Compensation for managerial or administrative services is called ____________. -
ANSWER salary
Payroll expenditures represent a relatively small part of the total expenditures of most
companies. - ANSWER False
The Fair Labor Standards Act provides that all employees covered by the act must be
paid one and one-half times the regular rate for all hours worked over 40 per week. -
ANSWER
The Fair Labor Standards Act requires employees to pay double the regular hourly rate
for the time worked on Saturday.
True - ANSWER False
Compensation expressed in terms of hours, weeks, or units produced for skilled or
unskilled labor is usually referred to as salary. - ANSWER False
Companies must accumulate payroll data both for the business as a whole and for each
employee. - ANSWER True
Compensation for managerial or administrative services usually is expressed in
biweekly, monthly, or annual terms and is called wages. - ANSWER False
Every individual who performs services for a business is considered to be an employee.
- ANSWER False
The various government laws and regulations regarding employee deductions,
employer payroll taxes, payroll records, and payroll reports apply only to employees and
not to independent contractors. - ANSWER True
