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| 1 | |
Each employee of a firm will receive several copies of Form W-2, the Wage and Tax Statement, from the |
| | A) | employer with each paycheck. |
| | B) | employer once a year. |
| | C) | federal government once a year. |
| | D) | employer once a quarter. |
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| 2 | |
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. |
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| 3 | |
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. |
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| 4 | |
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. |
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| 5 | |
Only the employer is responsible for paying |
| | A) | social security and Medicare taxes. |
| | B) | FUTA taxes. |
| | C) | social security, Medicare, and FUTA taxes. |
| | D) | all taxes. |
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| 6 | |
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. |
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| 7 | |
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. |
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| 8 | |
Form 941 is filed |
| | A) | monthly. |
| | B) | quarterly. |
| | C) | annually. |
| | D) | each payroll period. |
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| 9 | |
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 W-2 for each employee to the Internal Revenue Service. |
| | D) | None of the above statements is correct. |
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| 10 | |
Which of the following forms is submitted with a copy of the Form W-2 for each employee to the Social Security Administration? |
| | A) | Form W-3. |
| | B) | Form W-4. |
| | C) | Form 940. |
| | D) | Form 941. |
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