FREE ACCOUNTING AND STUDY GAMES ABOUT CHAPTER

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FREE ACCOUNTING AND STUDY GAMES ABOUT CHAPTER

12 EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -36 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Tax Base

Answer:

The maximum amount of earnings on which a tax is calculated

Question 2: Payroll Taxes

Answer:

Taxes based on the payroll of a business

Question 3: Payroll Deductions

Answer:

Any amount withheld from an employees gross earnings

Question 4: Payroll Register

Answer:

summarizes the earnings, deductions and net pay for all employees for one day period

Question 5: FYI - IRS administers

Answer:

the tax laws

Question 6: Employee Earnings Record

Answer:

A business form used to record details of an employees earnings and deductions

Question 7: FYI - Withholding exemptions

Answer:

1.last year had a right to a refund for all federal income tax withheld because had no tax liability 2.this year expect a refund for all federal income tax withheld because have no tax liability

Question 8: Salary

Answer:

A fixed annual sum of money divided among equal pay periods

Question 9: Direct Deposit

Answer:

The payment of an employees net pay using EFT

Question 10: FYI - another names for Total Earnings

Answer:

Gross pay, Gross wages, Gross earnings

Question 11: 401(k)

Answer:

a qualified retirement plan sponsored by an employer

Question 12: Roth Individual Retirement Account (Roth IRA)

Answer:

a qualified retirement plan that allows tax-free withdrawals from the account

Question 13: Pay Period

Answer:

The number of days or weeks covered by an employees paycheck

Question 14: Individual Retirement Account (IRA)

Answer:

a qualified retirement plan that provides most individuals with a deferred federal income tax benefit

Question 15: Social Security Tax

Answer:

A federal tax paid for old-age, survivors, and disability insurance

Question 16: Accumulated earnings

Answer:

The total gross earnings year to date for an employee

Question 17: Wage

Answer:

The amount paid to an employee for every hour worked

Question 18: FYI - requiring Social Security number

Answer:

law requires that each employee must have a social security number.law ensures that most infants one year old will have a social security number

Question 19: FYI - 4 pay periods

Answer:

Weekly, Biweekly, semimonthly, monthly

Question 20: Qualified Retirement Plan

Answer:

A retirement savings plan approved by the IRS that provides individuals with a tax benefit

Question 21: FYI - exemptions to federal wage laws

Answer:

Allows employers to exempt owners and managers from hourly payment

Question 22: Voucher Check

Answer:

has a detachable check stub, or voucher, that contains detailed information about the cash payment

Question 23: FYI - Fair Labor Standards Act requirements

Answer:

requires that businesses pay employees at least 1.5 times their normal hourly rate for hours worked in excess of 40 hours a week

Question 24: Total Earnings

Answer:

The total amount paid by a business for an employees work, earned by a wage, salary, or commission

Question 25: Payroll Clerk

Answer:

The accounting staff position that compiles and computes payroll data and then prepares, journalizes, and posts payroll transactions

Question 26: FYI - current tax rate & tax base amount

Answer:

6.2% of earnings up to a maximum of $106,800.00 in each year

Question 27: Medicare Tax

Answer:

A federal tax paid for hospital insurance

Question 28: Commission

Answer:

a method of paying an employee based on the amount of sales the employee generates