Self Assessment Quizzes

CHAPTER 13: Section 1 Journalizing and Posting the Payroll

	1.	The difference between gross earnings and net pay equals the employer`s

		a.	net income
		b.	payroll liabilities
		c.	capital
		d.	salary expense

	2.	The journal entry to record payroll is called a

		a.	multiple entry
		b.	compound entry
		c.	liability entry
		d.	tax entry

	3.	Depending on the business, it is possible that several different types of deductions such as credit union, union dues, and health insurance will be recorded in the payroll register in the

		a.	Federal Income Tax Payable column
		b.	Payroll Tax Expense column
		c.	Other Deduction column
		d.	Employer Payroll Tax Payable column

	4.	Payroll deductions are

		a.	debited to Salaries Expense
		b.	credited to Cash in Bank
		c.	debited to Cash in Bank
		d.	credited to various liability accounts

	5.	The largest item in the credit part of the payroll journal entry is

		a.	Cash in Bank
		b.	FICA Tax Payable
		c.	Employees` Federal Income Tax Payable
		d.	Employees` State Income Tax Payable

	6.	The expense account often used to record employees` earnings is called

		a.	Salaries Payable
		b.	Payroll Tax Expense
		c.	Salaries Expense
		d.	Payroll Tax Payable