Question 1

The Worker's Compensation Act of 1935 legislated the payment of worker's compensation
insurance.

Accepted Answer

A) True 
 B)False

Question 2

Contemporary payroll practices reﬂect:

Accepted Answer

A)  The increased use of manual payroll accounting systems. 
B)  The strategic use of payroll data as a company planning tool. 
C)  The replacement of accounting personnel with computerized systems. 
D)  The decrease in labor costs that reﬂects the effect of the economic recession. 
A)  The increased use of manual payroll accounting systems. 
B)  The strategic use of payroll data as a company planning tool. 
C)  The replacement of accounting personnel with computerized systems. 
D)  The decrease in labor costs that reﬂects the effect of the economic recession.

Question 3

What is the effect of payroll-related legislation on payroll practice?

Accepted Answer

A)  Legislation explicitly dictates speciﬁc activities of payroll accountants. 
B)  Legislation has prescribed the format and delivery of a payroll system. 
C)  Legislation highlights the need for ﬁrms to create well-designed payroll systems. 
D)  Legislation has alleviated the need for a company to design its own payroll system. 
A)  Legislation explicitly dictates speciﬁc activities of payroll accountants. 
B)  Legislation has prescribed the format and delivery of a payroll system. 
C)  Legislation highlights the need for ﬁrms to create well-designed payroll systems. 
D)  Legislation has alleviated the need for a company to design its own payroll system.

Question 4

Jonathan is the payroll accountant for Terraﬁrm Company. The company has experienced a rise in business that has increased Jonathan's workload to more than double his original amount. Because
Of the business increase, he has not been able to engage in the continuing professional education
(CPE) that his payroll certiﬁcation requires. When asked by his employer, Jonathan claims to be
Current with his CPE. According to the AICPA Code of Ethics, which of the following most closely
Describes the principle that Jonathan has violated?

Accepted Answer

A)  Objectivity and Independence 
B)  Integrity 
C)  Professionalism 
D)  Professional Competence and Due Care 
A)  Objectivity and Independence 
B)  Integrity 
C)  Professionalism 
D)  Professional Competence and Due Care

Question 5

The ethical principle of due care pertains to the upholding of rights and justice of stakeholders.

Accepted Answer

A) True 
 B)False

Question 6

Payroll taxes were instituted by the 16th Amendment to the United States Constitution:

Accepted Answer

A)  To penalize people who needed employment. 
B)  To fund infrastructure improvements of booming cities. 
C)  To make money from businesses that had employees. 
D)  To pay for governmental salaries. 
A)  To penalize people who needed employment. 
B)  To fund infrastructure improvements of booming cities. 
C)  To make money from businesses that had employees. 
D)  To pay for governmental salaries.

Question 7

Payroll accounting systems may involve an integrated software package that contains business-
planning tools.

Accepted Answer

A) True 
 B)False

Question 8

Which Act extended medical beneﬁts for certain terminated employees?

Accepted Answer

A)  ADEA 
B)  ERISA 
C)  COBRA 
D)  OSHA 
A)  ADEA 
B)  ERISA 
C)  COBRA 
D)  OSHA

Question 9

If a company chooses to use computer-based accounting, which of the following is required?

Accepted Answer

A)  A standalone system that is dedicated to payroll processing. 
B)  Certiﬁcation by a CPA prior to use for payroll processing. 
C)  Regularly scheduled software updates. 
D)  Certiﬁcation and bonding of payroll personnel. 
A)  A standalone system that is dedicated to payroll processing. 
B)  Certiﬁcation by a CPA prior to use for payroll processing. 
C)  Regularly scheduled software updates. 
D)  Certiﬁcation and bonding of payroll personnel.

Question 10

Internal payroll reports are used to inform a ﬁrm's managers and decision-makers about labor costs.

Accepted Answer

A) True 
 B)False

Question 11

Prevailing local wages and wage classiﬁcation strategies for government contractors were mandated by the ________.

Accepted Answer

A)  Equal Pay Act 
B)  Fair Labor Standards Act 
C)  Davis-Bacon Act 
D)  Walsh-Healey Public Contracts Act 
A)  Equal Pay Act 
B)  Fair Labor Standards Act 
C)  Davis-Bacon Act 
D)  Walsh-Healey Public Contracts Act

Question 12

Which of the following is a payroll accountant's responsibility?

Accepted Answer

A)  Preparation for corporate safety audits. 
B)  Wage negotiations with prospective employees. 
C)  Preparation of payroll tax returns. 
D)  Construction contract negotiations with governmental entities. 
A)  Preparation for corporate safety audits. 
B)  Wage negotiations with prospective employees. 
C)  Preparation of payroll tax returns. 
D)  Construction contract negotiations with governmental entities.

Question 13

The Sarbanes-Oxley Act legislated penalties for violations of which Act?

Accepted Answer

A)  ERISA 
B)  PRWOR 
C)  DOMA 
D)  HIPAA 
A)  ERISA 
B)  PRWOR 
C)  DOMA 
D)  HIPAA

Question 14

Many large companies have website portals in which employees may view and change payroll data. Which of the following is the most signiﬁcant concern about such websites?

Accepted Answer

A)  Employee website navigation issues. 
B)  Security of personnel data. 
C)  Employer oversight of stored data. 
D)  Accuracy of employee-entered data. 
A)  Employee website navigation issues. 
B)  Security of personnel data. 
C)  Employer oversight of stored data. 
D)  Accuracy of employee-entered data.

Question 15

The classiﬁcation of workers as exempt and nonexempt pertains to the provisions of the:

Accepted Answer

A)  Equal Pay Act. 
B)  Federal Insurance Contributions Act. 
C)  Social Security Act. 
D)  Fair Labor Standards Act. 
A)  Equal Pay Act. 
B)  Federal Insurance Contributions Act. 
C)  Social Security Act. 
D)  Fair Labor Standards Act.

Question 16

Companies may use ________ and ________ to allow employees to have secure, rapid access to their compensation.

Accepted Answer

A)  Cash; Checks 
B)  Cash; Direct Deposit 
C)  Paycards; Checks 
D)  Direct Deposit; Paycards 
A)  Cash; Checks 
B)  Cash; Direct Deposit 
C)  Paycards; Checks 
D)  Direct Deposit; Paycards

Question 17

The ________ prohibited discrimination based on race, creed, color, gender, and national origin.

Accepted Answer

A)  Lilly Ledbetter Fair Pay Act of 2009 
B)  Civil Rights Act of 1964 
C)  Fair Labor Standards Act of 1935 
D)  Equal Pay Act of 1963 
A)  Lilly Ledbetter Fair Pay Act of 2009 
B)  Civil Rights Act of 1964 
C)  Fair Labor Standards Act of 1935 
D)  Equal Pay Act of 1963

Question 18

Which Act governs the minimum wage that must be paid to nonexempt workers?

Accepted Answer

A)  FLSA 
B)  SSA 
C)  FICA 
D)  FUTA 
A)  FLSA 
B)  SSA 
C)  FICA 
D)  FUTA

Question 19

Payroll-related legislation often reﬂects emerging issues in societal evolution.

Accepted Answer

A) True 
 B)False

Question 20

The U.S. v. Windsor case repealed an Act and affected payroll tax withholdings for certain employees. Which Act did Windsor repeal?

Accepted Answer

A)  OSHA 
B)  ATRA 
C)  DOMA 
D)  ARRA 
A)  OSHA 
B)  ATRA 
C)  DOMA 
D)  ARRA

The Worker's Compensation Act of 1935 legislated the payment of worker's compensation insurance.

Contemporary payroll practices reﬂect:

What is the effect of payroll-related legislation on payroll practice?

The ethical principle of due care pertains to the upholding of rights and justice of stakeholders.

Payroll taxes were instituted by the 16th Amendment to the United States Constitution:

Payroll accounting systems may involve an integrated software package that contains business- planning tools.

Which Act extended medical beneﬁts for certain terminated employees?

If a company chooses to use computer-based accounting, which of the following is required?

Internal payroll reports are used to inform a ﬁrm's managers and decision-makers about labor costs.

Prevailing local wages and wage classiﬁcation strategies for government contractors were mandated by the ________.

Which of the following is a payroll accountant's responsibility?

The Sarbanes-Oxley Act legislated penalties for violations of which Act?

Many large companies have website portals in which employees may view and change payroll data. Which of the following is the most signiﬁcant concern about such websites?

The classiﬁcation of workers as exempt and nonexempt pertains to the provisions of the:

Companies may use and to allow employees to have secure, rapid access to their compensation.

The ________ prohibited discrimination based on race, creed, color, gender, and national origin.

Which Act governs the minimum wage that must be paid to nonexempt workers?

Payroll-related legislation often reﬂects emerging issues in societal evolution.

The U.S. v. Windsor case repealed an Act and affected payroll tax withholdings for certain employees. Which Act did Windsor repeal?

Payroll System Procedures

Gross Pay Computation

Fringe Benefits and Voluntary Deductions

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

The Payroll Register, Employees Earnings Records, and Accounting System Entries

Filters

Exam 1: Payroll Practices and System Fundamentals

The Worker's Compensation Act of 1935 legislated the payment of worker's compensation insurance.

Contemporary payroll practices reﬂect:

What is the effect of payroll-related legislation on payroll practice?

The ethical principle of due care pertains to the upholding of rights and justice of stakeholders.

Payroll taxes were instituted by the 16th Amendment to the United States Constitution:

Payroll accounting systems may involve an integrated software package that contains business- planning tools.

Which Act extended medical beneﬁts for certain terminated employees?

If a company chooses to use computer-based accounting, which of the following is required?

Internal payroll reports are used to inform a ﬁrm's managers and decision-makers about labor costs.

Prevailing local wages and wage classiﬁcation strategies for government contractors were mandated by the ________.

Which of the following is a payroll accountant's responsibility?

The Sarbanes-Oxley Act legislated penalties for violations of which Act?

Many large companies have website portals in which employees may view and change payroll data. Which of the following is the most signiﬁcant concern about such websites?

The classiﬁcation of workers as exempt and nonexempt pertains to the provisions of the:

Companies may use ________ and ________ to allow employees to have secure, rapid access to their compensation.

The ________ prohibited discrimination based on race, creed, color, gender, and national origin.

Which Act governs the minimum wage that must be paid to nonexempt workers?

Payroll-related legislation often reﬂects emerging issues in societal evolution.

The U.S. v. Windsor case repealed an Act and affected payroll tax withholdings for certain employees. Which Act did Windsor repeal?

Payroll System Procedures

Gross Pay Computation

Fringe Benefits and Voluntary Deductions

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

The Payroll Register, Employees Earnings Records, and Accounting System Entries

Filters

Companies may use and to allow employees to have secure, rapid access to their compensation.