PLEASE HELP ME ANSWER THE FOLLOWING 25 MCQ BELLOW
1) If Jeff worked 55 hours, how many hours of overtime will Jeff earn?
A) 20
B) 10
C) 5
D) 15
2) To compute FICA-OASDI tax to be withheld:
A) use net earnings and Form W-4.
B) use gross earnings, number of allowances, and marital status.
C) use the net earnings and number of allowances.
D) None of these answers are correct.
3) If Jessie Sod's hourly wage is $8.00, and she worked 35 hours during the week, what is her
gross pay for the week?
A) $280
B) $320
C) $300
D) $250
4) Wendy Nelson works 48 hours as a graphic designer. Compute her weekly pay. Her hourly rate
of pay is $25.00 per hour.
A) $1,000
B) $1,300
C) $1,500
D) $1,100
5) Currently the FUTA is:
A) .8% with a base limit of $7,000.
B) 6.2% with a base limit of $76,200.
C) 5.4% with a base limit of $76,200.
D) 5.4% with a base limit of $7,000.
6) Marcy's cumulative earnings before this pay period were $6,200, and gross for the week is
$500. How much of this week's pay is subject to taxes for SUTA and FUTA? The rates for
SUTA is 5.4% and FUTA is 0.8% with a base of $7,000.
A) $300
B) $0
C) $6,700
D) $500
7) For which of the following taxes is there no ceiling on the amount of employee annual earnings
subject to the tax?
A) Federal Unemployment Tax
B) FICA-Social Security
C) FICA-Medicare
D) State Unemployment Tax
8) For which of the following taxes is there a ceiling on the amount of employee annual earnings
subject to the tax?
A) FICA-social security
B) State unemployment taxes
C) Federal unemployment taxes
D) All of these answers are correct.
9) Emily has gross earnings of $300 and withholdings of $23 for FICA (Social Security and Medicare)
and $40 for income taxes. The employer pays $23 for FICA (Social Security and Medicare)
and $2.40 for FUTA. The total cost for employee Emily incurred by the employer is:
A) $325.40.
B) $303.00.
C) $342.40.
D) $328.00.
10) Jake's earnings during the month of March were $1,500. His earnings for the year prior to
March were $5,500. Jake's employer is subject to state unemployment of 2.0% and federal
unemployment taxes of 0.8% on the fi rst $7,000. The employer's unemployment payroll tax
expense for March is:
A) $36.40.
B) $56.40.
C) $154.00
D) $42.
11) Bay Online Auction's payroll for July includes the following data:
Gross salaries $40,000
Salaries subject to FICA:
6.2% Social Security 35,000
1.45% Medicare 40,000
Salaries subject to:
0.8% FUTA 2,000
2.0% SUTA 2,000
The employer's payroll tax for the period would be:
A) $2,806.
B) $2,226.
C) $3,206.
D) $2,096.
12) The account for Payroll Tax Expense includes all of the following except:
A) federal income tax.
B) unemployment taxes for the year to date.
C) employer payroll taxes for the year to date.
D) FICA taxes (Social Security and Medicare) paid by the employer for the latest payroll period.
13) Which of the following statements is false?
A) Payroll Tax Expense is an expense account.
B) FICA-Social Security Tax Payable increases on the credit side of the account.
C) SUTA Tax Payable increases on the debit side of the account.
D) Payroll Tax Expense increases on the debit side of the account.
14) The 941 taxes include:
A) property tax.
B) FUTA.
C) SUTA.
D) FICA.
15) Form 8109 is:
A) sent directly to the IRS.
B) a federal tax deposit coupon.
C) used when paying SUTA tax.
D) All of these answers are correct.
16) Which form is used to report FICA taxes for the employer and employee, and also federal
income taxes for the employee?
A) Form 941
B) Form W-4
C) Form 940EZ or Form 940
D) None of these answers are correct.
17) Which form is sent to the Social Security Administration along with the W-2s? It reports total
wages, FICA tax withheld, etc., for the previous year?
A) Form SS-4
B) Form W-2
C) Form W-3
D) Form 940
18) How often is a 940 fi led?
A) Quarterly
B) Annually
C) During an eight-month period
D) All of these answers are correct.
19) The correct journal entry to record the payment of SUTA is:
A) debit SUTA Expense; credit Cash.
B) debit SUTA Payable; credit Cash.
C) debit Cash; credit SUTA Payable.
D) debit Cash; credit SUTA Expense.
20) The normal balance of the Sales Returns and Allowances account is:
A) zero.
B) a debit.
C) a credit.
D) It does not have a normal balance.
21) The arrangements between buyer and seller as to when payments for merchandise are to be
made are called:
A) cash on demand.
B) net cash.
C) gross cash.
D) credit terms.
22) Which of the following statements about subsidiary ledgers is most accurate?
A) The subsidiary ledger accounts will equal the amount in the Sales account.
B) The subsidiary ledger accounts will never equal the control account in the general ledger.
C) The accounts receivable ledger is a book of accounts that provides supporting detail for
Accounts Receivable.
D) All of these answers are correct.
23) A customer returned merchandise that had been paid for within a discount period for credit.
The entry was recorded with a debit to Sales Returns and Allowances and a credit to Accounts
Receivable for the net amount. This error will cause:
A) the net income for the period to be overstated.
B) the net income is unaffected.
C) the net income for the period to be understated.
D) None of these are correct.
24) A sales discount correctly taken by the charge customer was debited to Sales at the time the
entry was recorded. This error will cause:
A) the net income for the period to be understated.
B) the net income for the period to be overstated.
C) the control account to not agree with the subsidiary ledger.
D) the sales account to be understated.
25) Collected from a charge customer: This will be recorded with:
A) a credit to a liability account.
B) a credit to an owner's equity account.
C) a credit to an asset account.
D) None of these are correct.
PLEASE ANSWER THE FOLLOWING QUESTION WITH AN EXPLANATION
Determine the amount to be paid within the discount period for purchase with an invoice price
of $7,745, subject to credit terms of 2/10, n/30. Explain how you reached your answer.
$ ________