Payroll Accounting Exam Questions
Course Introduction
Payroll Accounting is a specialized accounting course focused on the processes, regulations, and practices involved in managing employee compensation. Students will learn key concepts such as calculating wages and salaries, determining payroll tax withholdings, and preparing payroll reports. The course also covers compliance with federal and state employment laws, payroll systems, recordkeeping, and the use of accounting software to process payroll transactions. Emphasis is placed on understanding the responsibilities of employers, the impact of payroll on financial statements, and the importance of accuracy and confidentiality in handling payroll data.
Recommended Textbook
Payroll Accounting 2019 5th Edition by Jeanette
Landin
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7 Chapters
526 Verified Questions
526 Flashcards
Source URL: https://quizplus.com/study-set/3734
Page 2
Chapter 1: Payroll Practices and System Fundamentals
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75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/74470
Sample Questions
Q1) Worker's compensation is an insurance policy used for:
A)Wage continuation after job-related injuries.
B)Payment of mandatory payroll taxes.
C)Remittance of wages mandated by the FLSA.
D)Settlement of payroll-related lawsuits.
Answer: A
Q2) To verify employment eligibility for employees,________ is mandatory for all employers but ________ is not.
A)Form W-4;Form I-9
B)E-Verify;Form I-9
C)E-Verify;Form W-4
D)Form I-9;E-Verify
Answer: D
Q3) The use of outsourced payroll relieves employers of the responsibility for payroll accuracy.
A)True
B)False
Answer: False
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3
Chapter 2: Payroll System Procedures
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) If a firm pays its employees biweekly,how often does it disburse employee compensation?
A)Twice per week
B)Every week
C)Every two weeks
D)Every three weeks
Answer: C
Q2) Why is it important for an employer to classify a worker as either an employee or an independent contractor?
A)For tax reporting purposes
B)For child support obligations purposes
C)For government tracking purposes
D)For reimbursement purposes
Answer: A
Q3) Pay rate is the first payroll system decision a company must make.
A)True
B)False
Answer: False
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Chapter 3: Gross Pay Computation
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) Andre works for a bakery as a cake decorator and receives a base annual salary of $30,000 (paid weekly)as well as piece-rate pay of 25% of the retail price for any wedding cake that he decorates.His piece-rate earnings are totaled on a monthly basis and are paid on the first pay date of the following month.During the month of June,he decorated eight wedding cakes with a total retail value of $2,650.What is Andre's gross pay for the first week in July? (Do not round intermediate calculations.Round your answer to 2 decimal places. )
A)$1,427.53
B)$1,485.96
C)$1,239.42
D)$1,526.78
Answer: C
Q2) Which of the following items would not appear as a column on a payroll register?
A)Hiring date
B)Marital status
C)Number of withholding allowances
D)Hours worked
Answer: A
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Chapter 4: Fringe Benefits and Voluntary Deductions
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) What is the term for a tax-favorable IRA is set up by or for the employee,and the employer contributes the funds into the account?
A)IRA
B)SIMPLE
C)ESOP
D)SEP
Q2) The cash value of ________ must be included as compensation on the employee's W-2.
A)occasional meals and snacks
B)gift cards
C)on-site athletic facilities
D)plaques and trophies
Q3) The ________ determines when benefit amounts should be withheld from employee pay.
A)employee
B)employer
C)IRS
D)State in which the business is conducted
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Chapter 5: Employee Net Pay and Pay Methods
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70 Verified Questions
70 Flashcards
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Sample Questions
Q1) Garnishments may include deductions from employee wages on a post-tax basis for items such as: (You may select more than one answer. )
A)Charitable contributions.
B)Union Dues.
C)Child Support payments.
D)Consumer Credit liens.
Q2) The amount of federal income tax withheld decreases as the number of allowances increases.
A)True
B)False
Q3) From the employer's perspective,which of the following is a challenge of paying employees by direct deposit?
A)Reduction in payroll processing costs.
B)Secure processing of employee compensation.
C)Vulnerability of data to computer attacks.
D)Employee self-maintenance of personnel records.
Q4) Charitable contributions are an example of post-tax voluntary deductions.
A)True
B)False
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Chapter 6: Employer Payroll Taxes and Labor Planning
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) The IRS uses the ________ to determine how often a company must deposit payroll taxes.
A)Previous year's payroll tax deposits
B)Firm's income tax filings
C)Lookback period
D)Financial statements
Q2) The form that employers use to report their quarterly Federal income tax liability is
A)Form 940
B)Form 944
C)Form 943
D)Form 941
Q3) Patalano's Pros is a semiweekly schedule depositor.Which forms must they file to reconcile their payroll taxes?
A)Forms 940 and 944
B)Forms 941 and 944
C)Form 944 and Schedule B
D)Form 941 and Schedule B
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8
Chapter 7: The Payroll Register, employees Earnings
Records, and Accounting System Entries
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72 Verified Questions
72 Flashcards
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Sample Questions
Q1) Besides payroll information,the payroll register contains ________.
A)information about the firm's liabilities
B)tax remittance information
C)proof of payroll deposits
D)the firm's payroll checking account information
Q2) A debit always decreases the balance of an account.
A)True
B)False
Q3) What does the term "billable time" mean as it pertains to payroll accounting?
A)It is employee labor that may be billed to customers.
B)It is employee labor that does not pertain to labor on customer jobs.
C)It is non-employee labor that the company must pay.
D)It is non-traceable labor that a company must absorb as overhead.
Q4) Which of the following best describes the purpose of the payroll register?
A)It is a list of all persons and companies that the company pays money during a period.
B)It is a report that becomes published with other financial reports.
C)It is a worksheet that accountants use to ensure payroll accuracy.
D)It is an individual register maintained for each employee,listing of all the payroll information.
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