Accounting I Chapter 13 Test

What are items withheld from employees earnings at their request?

• Voluntary Deductions

• FICA

• Federal Income Tax

• State Income Tax

To what account is total net pay credited?

• Accounts Receivable

• Cash In Bank

• Capital

• Salaries Expense

Only the employee pays FICA tax

• True

• False

In what account are the employer's payroll taxes recorded?

• Payroll tax expense

• Salary Expense

• Miscellaneous Expense

• Accounts Payable

The percentage employers pay for state unemployment taxes varies from state to state.

• True

• False

What expense account is often used to record employees earnings?

• Salary Expense

• Payroll Expense

• Miscellaneous Expense

• Accounts Payable

What statement do you receive annually summarizing your earnings and withholdings?

• W-2

• W-3

• W-4

• 1040

Taxes paid by the employer to provide funds for workers who are temporarily out of work are called:

• Unemployment Taxes

• Social Security Taxes

• Medicare Taxes

• Federal Income Taxes

The total amount of gross earnings is entered on the side of the Salaries Expense account.

• Debit

• Credit

The account Employees' Federal Income Tax Payable has a normal balance.

• Credit

• Debit