Chapter 11 Notes & Payroll Quiz

TRUE / FALSE

1. The Notes Payable account is debited on the maturity date when a note is paid. True or False
2. The formula for calculating the interest on a note is principal times rate divided by time. True or False

Multiple Choice

3. Payroll taxes incurred by the employer are recorded as a credit to

1. Salaries Payable

2. Payroll Tax Payable

3. a separate liability account for each tax

4. Federal Taxes Payable

4. The journal entry to record the employers payroll taxes would include a

1. credit to Salaries Expense

2. debit to Payroll Tax Payable

3. credit to Salaries Payable

4. debit to Payroll Tax Expense