CHAPTER 7, CHAPTER 1 PAYROLL ACCOUNTING
QUESTIONS AND ANSWERS 100% CORRECT!
,Labor reports for more than one year could provide: - ANSWER staffing per income
projection;seasonal labor requirements
General journal entries are the original blank blank for payroll events to be recorded in
the accounting system - ANSWER entry, point
Where will entries for payroll show in the income statement? - ANSWER wages and
taxes expenses
Credits increase the balance to which of the following accounts: - ANSWER Liabilities;
Revenue
Earning records are supporting documents for - ANSWER tax deposits & quarterly
filings of form 941
secondary use is that in computer data failure, documents attached to payroll records
can be used to re-create files
Credits show increases to - ANSWER Liabilities, Equity, Revenue
Once the employees' W-2's are verified, the payroll accountant should verify the
accuracy of the totals on Form blank - ANSWER W-3
A computer error could cause - ANSWER journal entries to post one-sided
The majority of payroll expenses can be blank to specific jobs or customers - ANSWER
allocated
Informed business leaders can use payroll data for all except: - ANSWER determining
market price for company products
Which of the following accounts will appear on the balance sheet? - ANSWER FUTA
taxes payable; Wages payable
All of the following are examples of payroll liabilities except: - ANSWER Accounts
payable
, The employees' earnings record assist with earning limits for blank and blank taxes. -
ANSWER FUTA; SUTA
True or False: The general ledger is the point where information gets entered into the
accounting system database - ANSWER False
Payroll represents an expense to a business - ANSWER True
A debit is a decrease to any account - ANSWER False
Earning records are supporting documents for - ANSWER computer backup
Employer related payroll liabilities would include - ANSWER employer only taxes
shared employer-employee taxes
payment of payroll to employees
A payroll accrual occurs - ANSWER when payroll spans two months
when payday is after the end of the month
Each blank used in the general blank transaction has a corresponding account in the
general ledge - ANSWER account; journal
The cash credit for paying employees' wages blank the balance of an blank account -
ANSWER reduces; asset
Which would be equivalent to the accounting equation? - ANSWER assets-
liabilities=owners equity
liabilities=assets-owners equity
What is the original entry point for payroll information into the accounting system? -
ANSWER general journal
Payroll reconciliation ensures the blank of payroll amounts - ANSWER accuracy
Using an automated entry, the payroll accountant would record transaction through -
ANSWER general journal entries
Employers must submit blank, blank, and blank deductions on behalf of the employees -
ANSWER voluntary
QUESTIONS AND ANSWERS 100% CORRECT!
,Labor reports for more than one year could provide: - ANSWER staffing per income
projection;seasonal labor requirements
General journal entries are the original blank blank for payroll events to be recorded in
the accounting system - ANSWER entry, point
Where will entries for payroll show in the income statement? - ANSWER wages and
taxes expenses
Credits increase the balance to which of the following accounts: - ANSWER Liabilities;
Revenue
Earning records are supporting documents for - ANSWER tax deposits & quarterly
filings of form 941
secondary use is that in computer data failure, documents attached to payroll records
can be used to re-create files
Credits show increases to - ANSWER Liabilities, Equity, Revenue
Once the employees' W-2's are verified, the payroll accountant should verify the
accuracy of the totals on Form blank - ANSWER W-3
A computer error could cause - ANSWER journal entries to post one-sided
The majority of payroll expenses can be blank to specific jobs or customers - ANSWER
allocated
Informed business leaders can use payroll data for all except: - ANSWER determining
market price for company products
Which of the following accounts will appear on the balance sheet? - ANSWER FUTA
taxes payable; Wages payable
All of the following are examples of payroll liabilities except: - ANSWER Accounts
payable
, The employees' earnings record assist with earning limits for blank and blank taxes. -
ANSWER FUTA; SUTA
True or False: The general ledger is the point where information gets entered into the
accounting system database - ANSWER False
Payroll represents an expense to a business - ANSWER True
A debit is a decrease to any account - ANSWER False
Earning records are supporting documents for - ANSWER computer backup
Employer related payroll liabilities would include - ANSWER employer only taxes
shared employer-employee taxes
payment of payroll to employees
A payroll accrual occurs - ANSWER when payroll spans two months
when payday is after the end of the month
Each blank used in the general blank transaction has a corresponding account in the
general ledge - ANSWER account; journal
The cash credit for paying employees' wages blank the balance of an blank account -
ANSWER reduces; asset
Which would be equivalent to the accounting equation? - ANSWER assets-
liabilities=owners equity
liabilities=assets-owners equity
What is the original entry point for payroll information into the accounting system? -
ANSWER general journal
Payroll reconciliation ensures the blank of payroll amounts - ANSWER accuracy
Using an automated entry, the payroll accountant would record transaction through -
ANSWER general journal entries
Employers must submit blank, blank, and blank deductions on behalf of the employees -
ANSWER voluntary
