Ch 8 Tf Mc Comp Answers 2
Chapter 8—Payroll Accounting: Employee Earnings and Deductions
TRUE/FALSE
1. Payroll expenditures represents a relatively small part of the total expenditures of most companies.
ANS: F DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
2. The Fair Labor Standards Act provides that all employees covered by the act must be paid one and one-half times the regular rate for all hours worked over 40 per week.
ANS: T DIF: Easy OBJ: LO 8-2 MSC: AACSB Communication
4. Compensation expressed in terms of hours, weeks, or units produced for skilled or unskilled labor is usually referred to as salary.
ANS: F DIF: Easy OBJ: LO 8-2 MSC: AACSB Communication
5. Companies must accumulate payroll data both for the business as a whole and for each employee.
ANS: T DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
6. Compensation for managerial or administrative services usually is expressed in biweekly, monthly, or annual terms and is called wages.
ANS: F DIF: Easy OBJ: LO 8-2 MSC: AACSB Communication
7. Every individual who performs services for a business is considered to be an employee.
ANS: F DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
9. The length of the pay period affects the amount to be withheld from an employee's gross pay each pay period.
ANS: T DIF: Easy OBJ: LO 8-2 MSC: AACSB Communication
10. Government laws and regulations regarding payroll are much more complex for employees than for independent contractors.
ANS: T DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
12. The difference between an independent contractor and an employee is an important legal distinction.
ANS: T DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
13. An independent contractor performs a service for a fee and does not work under the control and direction of the company paying for the service.
ANS: T DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
14. The payroll register is a summary of the annual earnings of each employee.
ANS: F DIF: Easy OBJ: LO 8-3 MSC: AACSB
TRUE/FALSE
1. Payroll expenditures represents a relatively small part of the total expenditures of most companies.
ANS: F DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
2. The Fair Labor Standards Act provides that all employees covered by the act must be paid one and one-half times the regular rate for all hours worked over 40 per week.
ANS: T DIF: Easy OBJ: LO 8-2 MSC: AACSB Communication
4. Compensation expressed in terms of hours, weeks, or units produced for skilled or unskilled labor is usually referred to as salary.
ANS: F DIF: Easy OBJ: LO 8-2 MSC: AACSB Communication
5. Companies must accumulate payroll data both for the business as a whole and for each employee.
ANS: T DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
6. Compensation for managerial or administrative services usually is expressed in biweekly, monthly, or annual terms and is called wages.
ANS: F DIF: Easy OBJ: LO 8-2 MSC: AACSB Communication
7. Every individual who performs services for a business is considered to be an employee.
ANS: F DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
9. The length of the pay period affects the amount to be withheld from an employee's gross pay each pay period.
ANS: T DIF: Easy OBJ: LO 8-2 MSC: AACSB Communication
10. Government laws and regulations regarding payroll are much more complex for employees than for independent contractors.
ANS: T DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
12. The difference between an independent contractor and an employee is an important legal distinction.
ANS: T DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
13. An independent contractor performs a service for a fee and does not work under the control and direction of the company paying for the service.
ANS: T DIF: Easy OBJ: LO 8-1 MSC: AACSB Communication
14. The payroll register is a summary of the annual earnings of each employee.
ANS: F DIF: Easy OBJ: LO 8-3 MSC: AACSB