Sep 23 2016
Introduction
ACC105
Payroll, Sales and Property Taxes
Final Exam
Your exam contains 50 questions worth 3 points each for a total point value of 150.
Multiple Choice: Choose the one alternative that best completes the statement or answers the question.
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Please make sure you have answered all questions prior to submitting them. Once you click the submit
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Question
1 of 50
Generally, use tax is imposed on the
seller.
purchaser.
both the seller and purchaser.
neither the seller nor the purchaser.
Question
2 of 50
The only portion of wages exempt from a federal tax levy is
state taxes.
the standard deduction and personal exemption of the taxpayer.
union dues.
wages for child support.
Question
3 of 50
Personal property is valued by the
Arizona Department of Revenue.
County Assessor.
Taxpayer.
IRS.
Question
4 of 50
An employer
must pay federal tax levies before any other deduction.
under ERISA, must withhold pension and retirement benefits before any other deduction.
can take 50% of an employee’s disposable income for child support payments.
should discharge any employee receiving a wage garnishment.
Question
5 of 50
Which of the following types of payments are not taxable wages for federal unemployment tax?
Retirement pay
Cash prizes and awards for doing outstanding work
Dismissal pay
Bonuses as remuneration for services
Payment under a guaranteed annual wage plan
Question
6 of 50
Which of the following is not included in the entry to deposit FICA taxes and federal income taxes
withheld?
Payroll Taxes
FICA Taxes Payable-OASDI
FICA Taxes Payable-HI
Employees FIT Payable
Cash
Question
7 of 50
Americans working overseas
do not pay unemployment or collect unemployment benefits.
are extended unemployment coverage through their employer’s principle place of business.
under federal law, are not allowed to collect unemployment benefits.
must pay their unemployment taxes through their own withholdings.
Question
8 of 50
Which of the following is/are exempt from Arizona Use Tax?
Personal property purchased for resale
Personal property where transaction privilege tax has been paid
Personal property that becomes a component of a manufactured product
All of the above are exempt
None of the above is exempt
Question
9 of 50
Of the following, which wages are taxable under the Federal Unemployment Tax Act (FUTA)?
Moving expense reimbursement
Insurance agent commissions
Educational assistance payments to workers
Vacation pay
Question
10 of 50
Of the following people, who is not covered by the Federal Unemployment Tax Act (FUTA)?
A full-time traveling salesperson
Government employees
Labor union representatives
An agent-driver who sells milk on commission
Question
11 of 50
Which of the following business items are subject to property tax?
Vehicles
Display cases
Computers
All of the above
None of the above
Question
12 of 50
The late payment penalty for transaction privilege taxes is
0.5% per month, not to exceed 10%.
0.5% per month, not to exceed 25%.
1.0% per month, not to exceed 10%.
1.0% per month, not to exceed 25%.
Question
13 of 50
A debit to a liability account, such as FICA Payable-OASDI,
is accompanied by a credit to an expense account.
indicates an increase in what is owed by the business, usually due to the receipt of cash.
increases the amount due for FICA taxes.
indicates a decrease in what is owed by the business, usually due to paying the liability.
Question
14 of 50
You received a tax levy from the IRS on your employee Jan Simpson. Jan is single, has take home pay of
$630 this week, and claims one exemption. The amount of Jan’s tax levy is
$45.79.
$431.92.
$17.21.
$172.12.
Question
15 of 50
Which of the following items would require an adjusting entry at the end of each accounting period?
Garnishment for child support payments
Withholdings for a 401(k) plan
Vacation pay earned by employees
Union dues withheld
None of the above
Question
16 of 50
Voluntary contributions to a state’s unemployment department are
allowed in all states.
designed to increase an employer’s reserve account to lower the employer’s contribution rate.
capable of being paid at any time with no time limit.
returned to the employer at the end of the following year.
sent directly to the IRS.
Question
17 of 50
If you are in business in the state of Arizona, you will need to complete which of the following forms to
obtain a license?
TPT-1
1099-R
W-9: Request for Taxpayer Identification Number
Joint Tax Application
Question
18 of 50
An aspect of the interstate reciprocal arrangement concerns
the status of Americans working overseas.
the taxability of dismissal payments.
the determination of an employer’s experience rating.
the transfer of an employee from one state to another during the year.
none of the above.
Question
19 of 50
Cities that collect their own transaction privilege taxes are called
program cities.
independent cities.
nonprogram cities.
coded cities.
Question
20 of 50
The penalty for filing Form TPT-1 late is
5.0% per month, not to exceed 10% of tax reported.
5.0% per month, not to exceed 25% of tax reported.
4.5% per month, not to exceed 10% of tax reported.
4.5% per month, not to exceed 25% of tax reported.
Question
21 of 50
A credit entry could mean all of the following except an increase in
a liability account FICA Taxes Payable.
a liability account SUTA Taxes Payable.
the business expenses.
a liability account City Taxes Payable.
Question
22 of 50
For FUTA purposes, an employer can be any one of the following except
an individual.
a partnership.
a trust.
a corporation.
All of the above can be employers.
Question
23 of 50
The State of Arizona Use Tax rate for 2016 is
4.5%.
5.1%.
5.6%.
6.6%.
Question
24 of 50
Which of the following accounts is an expense account in which an employer records the FICA, FUTA, and
SUTA taxes?
Wages Expense
Payroll Taxes
SUTA Taxes Payable
Salaries Payable
None of the above
Question
25 of 50
Carmen Gaetano worked 46 hours during this pay week. She is paid time-and-a-half for hours over 40,
and her pay rate is $17.90/hour. What was her overtime premium pay for this workweek?
$161.10
$26.85
$50.70
$107.40
$53.70
Question
26 of 50
The account SUTA Taxes Payable
records the employee payment of federal income taxes.
is credited when the cash payment is made.
is an asset account.
is a current liability account.
Question
27 of 50
To avoid a credit reduction for Title XII advances, a state must repay the loans by
the end of the year of the loans.
the end of the year the credit reduction is scheduled to take effect.
the end of the third year after the year of the loans.
November 10 of the year the credit reduction is scheduled to take effect.
June 30 of the year after the loans.
Question
28 of 50
When actually paying taxes or other withholdings, you should
credit the cash account.
debit the expense account.
debit the cash account.
credit the appropriate expense account.
Question
29 of 50
Which of the following is not an expense of the employer?
FUTA tax
FICA tax-HI
FICA tax-OASDI
SUTA tax
Union dues withheld
Question
30 of 50
Use taxes are reported on the
Joint Tax Application Form.
TPT-1 Form.
1099-Int Form.
None of the above.
Question
31 of 50
Amy Medina works in sales and travels in five western states. When Amy is in Oregon, she reports to the
company headquarters in Eugene. Amy’s residence is in California. For State Unemployment (SUTA)
purposes, Amy is covered
in both Oregon and California under a reciprocal arrangement.
in Oregon.
Amy works in sales and is not covered under FUTA.
in California.
Question
32 of 50
Which of the following provides for a reduction in the employer’s state unemployment tax rate based on
the employer’s experience with the risk of unemployment?
Voluntary contribution
Title XII advances
Pooled-fund laws
Experience-rating plan
None of the above
Question
33 of 50
Which of the following are Included under the definition of employees for FUTA purposes?
Independent contractors
Insurance agents paid solely on commission
Student nurses
Officers of a corporation
Members of partnerships
Question
34 of 50
In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the
amount of the adjustment would usually be determined by
collecting the timesheets for the days accrued.
using the same amount as the prior month’s adjustment.
using the wages of the salaried workers only.
a percentage of the previous week’s gross payroll.
a percentage of the previous week’s net payroll.
Question
35 of 50
Which of the following payments are taxable payments for federal unemployment tax?
Christmas gifts, excluding noncash gifts of nominal value
Caddy fees
Courtesy discounts to employees and their families
Workers’ compensation payments
Value of meals and lodging furnished employees for the convenience of the employer
Question
36 of 50
The State of Arizona provides a 2% credit to those taxpayers who file and pay their TPT timely and in full.
This statement is
true.
false, as the credit is really only 1%.
true, but only for taxpayers who meet all requirements.
false, as there is no credit for paying your TPT in full.
Question
37 of 50
The person who is not an authorized signer of Form 940 is
the individual, if a sole proprietorship.
the accountant from the company’s independent auditing firm.
the president, if a corporation.
a fiduciary, if a trust.
All of the above are authorized signers.
Question
38 of 50
Voluntary contributions to the State Unemployment Tax Act (SUTA) funds
become mandatory when you are a negative-balance employer.
can potentially save employers money.
increase the unemployment benefit for laid-off workers.
are reported on Form 940.
Question
39 of 50
Generally, personal property is defined as all property except
equipment used in manufacturing.
equipment used for agricultural purposes.
real estate.
vehicles.
Question
40 of 50
Personal property is valued at
original cost.
original cost less depreciation.
current replacement cost.
current replacement cost less depreciation.
Question
41 of 50
If the employer has made timely deposits that pay the FUTA tax liability in full, the filing of Form 940 can
be delayed until
December 31.
February 15.
February 10.
February 1.
March 31.
Question
42 of 50
When employees take vacation and use vacation time, the
account "Vacation Benefits Expense" is credited.
account "Vacation Benefits Expense" is accrued.
expense has already been recorded.
Vacation Benefits Payable account is credited.
Question
43 of 50
FUTA taxes can be reduced by
appealing to the Federal Unemployment Commissioner.
the amount of FICA tax paid.
filing Form 8109.
a credit for SUTA tax paid.
Question
44 of 50
Personal property is reported to the state of Arizona using
DOR Form 82520.
DOR Form 82179PT.
TPT-1 Form.
DOR Form 82530.
Question
45 of 50
In general, which of the following activities is not subject to transaction privilege tax?
Personal property rentals
Sales made for resale purposes
Hotel/motel lodging
Printing and publishing
Question
46 of 50
According to the State Unemployment Tax Act (SUTA), an employer can elect to cover all services of a
worker in any one state in which
the employee performs any work.
the state has Title XII Advance coverage.
the worker has a labor union representative.
the states have a reciprocal agreement.
Question
47 of 50
Which of the following states do not require a contribution from the employee for State Unemployment
Tax Act (SUTA) purpose?
Hawaii
New York
New Jersey
New Mexico
Question
48 of 50
In addition to paying the employee, the employer is responsible for paying all of the following taxes
except
SUTA.
FUTA.
EFTS.
FICA.
Question
49 of 50
Which of the following is not a factor considered in determining coverage of interstate employees?
Location of base of operations
Place where work is localized
Location of company’s payroll department
Location of employee’s residence
Location of place from which operations are controlled
Question
50 of 50
The employee earnings record provides information for each of the following except
completing Forms W-2.
completing the journal entry to record the payroll.
determining when the accumulated wages of an employee reach cutoff levels.
preparing reports required by state unemployment compensation laws.
preparing the payroll register.
