Payroll Accounting 5th Edition By Jeanette Landin – Test Bank
Chapter 7 The Payroll Register, Employees’ Earnings Records, and Accounting System Entries
1) The purpose of the net pay and check number columns in the payroll register is to verify accurate disbursal of payroll.
Answer: TRUE
Difficulty: 1 Easy
Topic: Connect the Payroll Register to the Employees’ Earnings Records
Learning Objective: 07-01 Connect the Payroll Register to the Employees’ Earnings Records
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) The payroll register is identical for each company.
Answer: FALSE
Explanation: The columns in a payroll register may vary among companies.
Difficulty: 1 Easy
Topic: Connect the Payroll Register to the Employees’ Earnings Records
Learning Objective: 07-01 Connect the Payroll Register to the Employees’ Earnings Records
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
3) The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal.
Answer: TRUE
Difficulty: 1 Easy
Topic: Connect the Payroll Register to the Employees’ Earnings Records
Learning Objective: 07-01 Connect the Payroll Register to the Employees’ Earnings Records
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
4) Employee earnings records form the link between accounting and the human resources department.
Answer: TRUE
Difficulty: 1 Easy
Topic: Connect the Payroll Register to the Employees’ Earnings Records
Learning Objective: 07-01 Connect the Payroll Register to the Employees’ Earnings Records
Bloom’s: Remember
AACSB: Communication
Accessibility: Keyboard Navigation
5) Besides containing the supporting data for periodic tax reports, the employee earnings record serves as a backup in the event of computer failure.
Answer: TRUE
Difficulty: 1 Easy
Topic: Connect the Payroll Register to the Employees’ Earnings Records
Learning Objective: 07-01 Connect the Payroll Register to the Employees’ Earnings Records
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
6) A debit always decreases the balance of an account.
Answer: FALSE
Explanation: A debit represents an entry on the left side of the T-account.
Difficulty: 2 Medium
Topic: Describe Financial Accounting Concepts
Learning Objective: 07-02 Describe Financial Accounting Concepts
Bloom’s: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
7) The General Journal contains records of a firm’s financial transactions, which appear chronologically.
Answer: TRUE
Difficulty: 2 Medium
Topic: Describe Financial Accounting Concepts
Learning Objective: 07-02 Describe Financial Accounting Concepts
Bloom’s: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
8) In the General Ledger, the debit column reflects the balance of the account.
Answer: FALSE
Explanation: Not all accounts will have a debit balance.
Difficulty: 1 Easy
Topic: Describe Financial Accounting Concepts
Learning Objective: 07-02 Describe Financial Accounting Concepts
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
9) Two complete payroll-related General Journal entries are recorded each pay period: one for the employees’ payroll, one for the employer’s share of the taxes.
Answer: TRUE
Difficulty: 1 Easy
Topic: Complete Payroll-Related General Journal Entries
Learning Objective: 07-03 Complete Payroll-Related General Journal Entries
Bloom’s: Remember
AACSB: Communication
Accessibility: Keyboard Navigation
10) Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial period.
Answer: FALSE
Explanation: Payroll accruals reflect the amount of payroll earned but not paid.
Difficulty: 2 Medium
Topic: Complete Payroll-Related General Journal Entries
Learning Objective: 07-03 Complete Payroll-Related General Journal Entries
Bloom’s: Apply
AACSB: Communication
Accessibility: Keyboard Navigation