) The effect on the FICA Taxes Payable Account when a payment is made is called: a. Increase with a, CR b. Increase with a, DR c. Decrease with a DR d. Decrease with a, CR
1) The effect on the FICA Taxes Payable Account when a payment is made is called:
a. Increase with a, CR
b. Increase with a, DR
c. Decrease with a DR
d. Decrease with a, CR
2) From the options below, which of the following statements is true?
a. Payroll Tax Expense increases on the credit side of the account
b. FICA Medicare Payable increases with a credit
c. Federal Income Tax Withholding Payable decreases with a credit
d. Employee Payroll Taxes withheld are recorded in Payroll Tax Expense
3) From the options below, identify the one that is NOT an example of internal control procedures
that help prevent payroll fraud.
a. Require mandatory vacations.
b. Outsource Payroll Administration.
c. Conduct periodic unannounced audits.
d. Make sure only one person handles payroll functions.
4) Sally Carson has cumulative earnings of $89,900 and earns $6,500 during the current pay
period. If the FICA rate is 4.2% for Social Security, with a limit of $106,800, and 1.45% for
Medicare, applied to all earnings, the total FICA tax to be withheld for this pay period is:
a. $273.00
b. $94,25
c. $367.25
d. $163.80
5) If someone is recorded in the payroll system but does not work for the business, this is an
example of:
a. Fictional Employee Fraud
b. False Employee Fraud
c. Ghost Employee Fraud
d. False Expense Fraud
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