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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

Payroll Computations, Records, and Payment

True/False Questions


1	A company hires J. Novacek, a public accountant, to prepare monthly financial statements. Novacek comes to the company's office, reviews source documents, and later returns the statements. Novacek would be classified as an employee.
		A)	True
		B)	False


2	Payroll taxes apply to salaries and wages paid employees and to amounts paid to independent contractors.
		A)	True
		B)	False


3	The Labour Act fixes a minimum wage for supervisory employees paid a monthly salary
		A)	True
		B)	False


4	Employees can choose whether they want to be covered by the Canada Pension Plan.
		A)	True
		B)	False


5	Most employers determine the amount of income tax to be withheld from the employee's pay by using withholding tables.
		A)	True
		B)	False


6	The Employment Insurance is in addition to the Canada Pension Plan(CPP).
		A)	True
		B)	False


7	The number of exemptions, earnings for the pay period, and length of pay period are all factors in determining the amount of Income Tax to be withheld.
		A)	True
		B)	False


8	The employer is required to contribute the same amount of federal employment insurance as the amount withheld from the employee's earnings.
		A)	True
		B)	False


9	The employment insurance rate can be reduced by the rate charged by the federal government in the federal employment insurance program.
		A)	True
		B)	False


10	The workers` compensation program is a federal program.
		A)	True
		B)	False


11	The payroll register provides all the information required to make a general journal entry to record the payroll.
		A)	True
		B)	False


12	An employee worked 44 hours during the week. Her regular hourly pay is $8 per hour. Her gross pay for the week is $352.
		A)	True
		B)	False

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