Question : Multiple Choice Questions 23.Which of the following statements NOT correct? A. The accountant : 1168922

 

Multiple Choice Questions 

23.Which of the following statements is NOT correct?   

A. The accountant obtains information about wages subject to payroll taxes from the payroll register.

 

B. Most commercial banks are authorized to accept the employee’s tax deposits for federal income taxes withheld and the employer’s and employees’ shares of social security taxes.

 

C. Payroll tax deposits can be made electronically or using a Federal Tax Deposit Coupon, Form 8109.

 

D. The “lookback period”, in regard to payroll taxes, is defined as the previous month.

 

 

 

 

24.Employees’ payments for federal income taxes withheld and social security and Medicare taxes are periodically   

A. sent directly to the Internal Revenue Service.

 

B. deposited in a special-purpose bank account, controlled by the company, until year-end when the funds are sent to the U.S. Treasury Department.

 

C. sent to the local office of the Internal Revenue Service.

 

D. deposited in a government-authorized financial institution.

 

 

 

 

25.The frequency of deposits of federal income taxes withheld and social security and Medicare taxes is most dependent on   

A. the amount owed.

 

B. the number of payroll periods a firm has.

 

C. the profit reported by the firm.

 

D. the number of employees on the payroll.

 

 

 

 

26.Both the employer and the employee are responsible for paying   

A. social security and Medicare taxes.

 

B. FUTA taxes.

 

C. social security, Medicare, and FUTA taxes.

 

D. SUTA taxes.

 

 

 

 

27.Only the employer is responsible for paying   

A. social security and Medicare taxes.

 

B. FUTA taxes.

 

C. social security, Medicare, and FUTA taxes.

 

D. federal income taxes.

 

 

 

 

28.To record a deposit of federal income taxes withheld and social security and Medicare taxes, the accountant would   

A. debit an expense account and credit one or more liability accounts.

 

B. debit an asset account and credit an expense account.

 

C. debit one or more liability accounts and credit an asset account.

 

D. debit one or more expense accounts and credit one or more liability accounts.

 

 

 

 

29.During the week ended June 15, Wiley Automotive’s employees earned $2,000 of gross wages and had $300 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45%. The journal entry to record Payroll Tax Expense for the pay period would be:   

A. 

 

 

B. 

 

 

C. 

 

 

D. 

 

 

 

 

30.On Form 941, the Employer’s Quarterly Federal Tax Return, a firm calculates its liability for the quarter for   

A. federal income taxes withheld, social security and Medicare taxes, and FUTA taxes.

 

B. federal income taxes withheld and social security and Medicare taxes.

 

C. social security and Medicare taxes and FUTA taxes.

 

D. federal and state income taxes withheld.

 

 

 

 

31.Form 941 is filed   

A. monthly.

 

B. quarterly.

 

C. annually.

 

D. each payroll period.

 

 

 

 

32.Which of the following statements is correct?   

A. Form 941 is often referred to as a withholding statement.

 

B. An employee must attach one copy of Form W-2 to his or her personal federal income tax return.

 

C. The employer sends one copy of the Form 941 for each employee to the Internal Revenue Service.

 

D. An employee must attach one copy of Form W-4 to his or her personal federal income tax return.