Using Sage 50 Accounting 2016 1st Edition Purbhoo Test Bank Updated 2025
Using Sage 50 Accounting 2016 1st Edition Purbhoo Test Bank Updated 2025
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CHAPTER 9 QUESTIONS (Northern Lights)
1. If an employee has regular payroll deductions for a charitable donation contribution, but wants to
stop making these contributions, you should –
a. remember to change the amount in the payroll journal when you prepare a pay cheque
b. ask the employee to reconsider because the contributions help you reach a goal for total donations
c. change the amount in the remittances screen
d. make the change in the ledger record for the employee
4. Which of the following are not defined in the payroll ledger settings screens –
a. payroll tax deduction settings
b. payroll liability and expense linked accounts
c. income and deduction names
d. employee information and historical deductions
7. At any time you may change all but one of the following payroll ledger information –
a. the employee personal information
b. the employer’s income tax tables
c. the employee income and taxes
d. the employee default deductions
12. You must enter historical payroll income information for employees in the –
a. historical income tab screen
b. payroll ledger screen
c. year-to-date income tab screen
d. none of the above
13. Corrections may be made to any payroll ledger personal information field by –
a. double clicking the error to select it and typing the correct details
b. entering a reminder Memo and typing the correct details
c. selecting the proper default and typing the correct details
d. you cannot make changes to these fields
14. The default deduction rate for WCB (WSIB) deductions is entered in –
a. the deductions tab screen in the employee ledger record
b. the payroll ledger income settings screen
c. the payroll ledger taxes screen
d. the taxes tab screen in the employee ledger record
15. How are the linked accounts for CPP different from the linked accounts for income tax –
a. CPP has a linked liability account only; income tax has an expense account only
b. CPP has a linked expense account only; income tax has a liability account only
c. CPP has both linked liability and expense accounts; income tax has a liability account only
d. none of the above
16. Which one of the following statements about payroll linked accounts is correct –
a. each employee has a unique linked wage expense account
b. each employee must be linked to the same wage expense account
c. each type of income must be linked to a unique expense account
d. none of the above
21. To set up an employee for direct payroll deposit you must do all but one of the following –
a. enter the percentage of the pay that is to be deposited to each bank account
b. enter the bank, transit and account numbers as the bank account details
c. enter the total payroll amount that is deposited
d. choose the option direct deposit paycheque for this employee
29. Paid sick leave and paid vacation time are examples of –
a. benefits
b. income
c. entitlements
d. all of the above
31. If a CPP amount is missing from a payroll journal entry, it is most likely that –
a. no linked account is entered for CPP Payable
b. the employee’s date of birth was entered incorrectly
c. CPP is not required in the province of employment
d. all of the above are possible explanations for the missing amount
32. When EI amounts are missing from a payroll journal entry in a February paycheque, you should
check –
a. whether or not you entered the historical amount correctly
b. whether or not the employee’s date of birth is correct
c. whether or not the linked accounts are correct
d. a and c are correct
35. When you set up payroll remittances, the Balance Forward amounts –
a. are the same as the opening trial balance liability amounts for that date
b. are the same as the opening trial balance expense amounts for that date
c. the balance forward date must be the same as the fiscal start date
d. both a and c above are correct
36. Which of the following statements is true about linked accounts for the Payroll module –
a. the Vacation Payable linked account is not required when all employees are salaried
b. the Payroll linked bank account is not required when all employees have their pay cheques
deposited directly to their bank accounts
c. none of the linked accounts for Payroll are essential linked accounts that are required to finish the
history
d. the Advances Receivable linked account is an essential account (required to finish the history)
37. The following Payroll linked accounts are essential accounts that are required to finish the history –
a. the linked Vacation Payable account
b. the linked Advances Receivable account
c. the linked Payroll bank account
d. both a & b are correct
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