Question : 51. A copy of the Form W-2 for each employee submitted : 1197561

Accounting

51. A copy of the Form W-2 for each employee is submitted to the Social Security Administration along with

A. Form 940.

B. Form 941.

C. Form 8109.

D. Form W-3.

52. Which of the following statements is not correct?

A. A few states levy an unemployment tax on the employee that must be withheld from the employee’s pay.

B. One of the purposes of the unemployment insurance program is to stabilize employment and reduce unemployment.

C. The reduction of state unemployment taxes because of favorable experience ratings reduces the credit allowable against the federal unemployment tax.

D. The unemployment insurance program is a federal program.

53. Which of the following taxes is not withheld from an employee’s pay?

A. Federal income tax

B. Social security tax

C. FUTA tax

D. Medicare tax

54. All of the following taxes are withheld from an employee’s pay except

A. Federal income tax.

B. SUTA tax.

C. Medicare tax.

D. Social security tax.

55. To record the deposit of FUTA tax, the accountant would

A. debit Payroll Taxes Expense and credit Federal Unemployment Tax Payable.

B. debit Payroll Taxes Expense and credit Cash.

C. debit Federal Unemployment Tax Payable and credit Cash.

D. debit Social Security Taxes Payable and credit Cash.

56. To record the payment of SUTA tax, the accountant would

A. debit Payroll Taxes Expense and credit State Unemployment Tax Payable.

B. debit Payroll Taxes Expense and credit Cash.

C. debit Social Security Taxes Payable and credit Cash.

D. debit State Unemployment Tax Payable and credit Cash.

57. Employers usually record unemployment taxes at the end of each

A. payroll.

B. month.

C. quarter.

D. year.

58. Most states require that the employer file the state return for unemployment taxes

A. monthly.

B. quarterly.

C. annually.

D. each payroll period.

59. Generally, the base earnings subject to state unemployment taxes is

A. smaller than the base for social security.

B. the same as the base for social security.

C. larger than the base for social security.

D. the amount of total earnings.

60. Tax returns for the federal unemployment tax are due

A. weekly.

B. monthly.

C. quarterly.

D. annually.

61. This preprinted government form is used to report federal unemployment taxes.

A. Form 940

B. Form 941

C. Form 8109

D. Form W-2

62. All of the following are internal control procedures that are recommended to protect payroll operations except

A. assign new employees to work in payroll operations.

B. keep payroll records in locked files.

C. make voluntary deductions from employee earnings based only on a signed authorization from the employee.

D. retain all Forms W-4.

63. If at the end of the year the firm owes a balance for workers’ compensation insurance, the adjusting entry includes a

A. debit to Workers’ Compensation Insurance Payable a credit to Workers’ Compensation Insurance Expense.

B. a debit to Workers’ Compensation Refund Receivable and a credit to Workers’ Compensation Insurance Expense.

C. a debit to Workers’ Compensation Insurance Expense and a credit to Workers’ Compensation Insurance Payable

D. a debit to Payroll Taxes Expense and a credit to cash.

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July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.