Certain employees of a business may be exempt from the overtime requirementof the Fair Labor Standards Act.

True

False

QUESTION 2

FICA-HI uses the same wage base, as does FICA-OASDI.

True

False

2 points

QUESTION 3

Another name for take home pay is gross earnings.

True

False

2 points

QUESTION 4

Overtime pay beyond 8 hours on any day is a matter of company policy, not any federal law.

True

False

2 points

QUESTION 5

Employers are required to keep a record called the payroll register for each employee.

True

False

2 points

QUESTION 6

The salary expense account is debited for the amount of the total net pay

True

False

QUESTION 7

FUTA tax is paid equally by the employer and employee.

True

False

2 points

QUESTION 8

Form 941 is used to report all FICA taxes and the FIT withheld from employees' pay.

True

False

2 points

QUESTION 9

Employers must file Form 941 for each quarter during a calendar year.

True

False

2 points

QUESTION 10

Form 940 is used to report both FUTA and SUTA taxes to the government.

True

False

2 points

QUESTION 11

When recording the employers payroll taxes, a separate liability account is debited to record the amount of tax owed.

True

False

2 points

QUESTION 12

The lookback period for 2023 ended on June 30, 2022

True

False

QUESTION 13

When a note is issued, the lender's journal entry involves a debit to notes receivable.

True

False

2 points

QUESTION 14

The party to be paid on the maturity date of a note is referred to as the maker.

True

False

2 points

QUESTION 15

The principal amount of a note is the amount of money borrowed.

True

False

2 points

QUESTION 16

Among the deductions imposed on the gross earnings of an employee are:

	a.	FICA and FIT taxes
	b.	FUTA and SUTA Taxes
	c.	FICA, FIT and workers compensation taxes
	d.	FUTA, SUTA, FICA and FIT taxes

2 points

QUESTION 17

In accounting for payroll, each employee deduction is credited to a(n):

	a.	Contra-asset
	b.	Asset
	c.	Liability
	d.	Expense

2 points

QUESTION 18

The Fair Labor Standards Act covers Bill Forest. During the week, he worked 43 hours.His regular pay is $14 an hour. What are his gross earnings for the week?

	a.	$623
	b.	$602
	c.	$644
	d.	$560