Chapter 13 Test Accounting

All the payroll information needed to prepare payroll and tax reports is found on the

• Form W-4 and employee earnings record
• Form W-4 and the payroll register
• The payroll register and the employee earnings record
• Form W-4

Payroll taxes that are paid by both the employer and employee are

• Federal unemployment tax and social security
• Federal unemployment tax and medicare
• Social security and medicare
• Federal income, social security and medicare

When payroll is paid, the credit to cash is equal to the

• Total earnings of all employees
• Total deductions of income tax
• Total deductions
• Net pay of all employees

Employer business taxes are

• Assets
• Liabilities
• Expenses
• Revenues

The payment of payroll journal entry is based on the totals of the

• Earnings total column, each deduction column, and the net pay column
• Earnings total, earnings regular, earnings overtime and deductions total
• Earnings regular, earnings overtime, and deductions total column
• Earnings total, earnings regular, and earnings overtime total columns

When recording a payment of payroll, The total federal income tax is credited to

• A revenue account
• An expense account
• A liability account
• An asset account

Employers are not required to pay unemployment tax on employees who have earned more than $7,000

• True
• False

Until amounts withheld from employee salaries are paid by the employer they are recorded as liabilities

• True
• False

To record employer payroll tax expense the following accounts are credited

• Payroll tax expense and employer income tax payable
• Employee income tax payable, social security tax payable, and medicare tax payable
• Social security tax payable, medicare tax payable, unemployment tax federal payable and unemployment tax state payable
• None of these

A federal tax used for administrative expenses of the unemployment program is the

• Social security tax
• Medicare tax
• Federal unemployment tax
• State unemployment tax