Question 1

Which of the following is not an option available to payroll accountants?

Accepted Answer

A)  Payroll preparation through manual,handwritten spreadsheets. 
B)  Reduced responsibility for accuracy because of outsourcing services. 
C)  Increased use of paycards as a vehicle for paying employees. 
D)  Governmentally mandated and monitored payroll outsourcing. 
A)  Payroll preparation through manual,handwritten spreadsheets. 
B)  Reduced responsibility for accuracy because of outsourcing services. 
C)  Increased use of paycards as a vehicle for paying employees. 
D)  Governmentally mandated and monitored payroll outsourcing. C

Question 2

The Fair Labor Standards Act contains provisions for:

Accepted Answer

A)  Overtime pay,minimum wage,and working conditions. 
B)  Full-time workers,part-time workers,and independent contractors. 
C)  Minimum wage,maximum wage,and overtime pay. 
D)  Pay periods,paid time off,and minimum wage. 
A)  Overtime pay,minimum wage,and working conditions. 
B)  Full-time workers,part-time workers,and independent contractors. 
C)  Minimum wage,maximum wage,and overtime pay. 
D)  Pay periods,paid time off,and minimum wage. A

Question 3

The USERRA legislation provided the following:

Accepted Answer

A)  Military service members receive mandatory priority during the hiring process. 
B)  Military service members receive preferential treatment for promotions and raises during the normal course of business. 
C)  Military members must receive the same promotions and compensation that they would have received when they return from active duty. 
D)  Injured military veterans must be allowed to return to work,but their compensation may be reduced based on their disability. 
A)  Military service members receive mandatory priority during the hiring process. 
B)  Military service members receive preferential treatment for promotions and raises during the normal course of business. 
C)  Military members must receive the same promotions and compensation that they would have received when they return from active duty. 
D)  Injured military veterans must be allowed to return to work,but their compensation may be reduced based on their disability. C

Question 4

Worker's compensation insurance premiums:

Accepted Answer

A)  Are the same amount for all employees of a company,regardless of employee task. 
B)  Are remitted in full at the end of the year to ensure accuracy. 
C)  Are mandated by the Fair Labor Standards Act. 
D)  Are governed by state laws and vary according to worker job classification. 
A)  Are the same amount for all employees of a company,regardless of employee task. 
B)  Are remitted in full at the end of the year to ensure accuracy. 
C)  Are mandated by the Fair Labor Standards Act. 
D)  Are governed by state laws and vary according to worker job classification.

Question 5

Which of the following is among the guidelines for the AICPA Code of Ethics?

Accepted Answer

A)  Company Interest 
B)  Corporate Profitability 
C)  Due Care 
D)  Interdependence 
A)  Company Interest 
B)  Corporate Profitability 
C)  Due Care 
D)  Interdependence

Question 6

Which of the following represents a payroll system privacy breach by Susan,a payroll accountant?

Accepted Answer

A)  Susan shares information about labor costs with company executives. 
B)  Susan alerts department managers about potential FLSA violations in their departments. 
C)  Susan discusses specific information about the company's federal contracts with friends during lunch. 
D)  Susan places employee payroll files in a cabinet to which only she and her supervisor have access. 
A)  Susan shares information about labor costs with company executives. 
B)  Susan alerts department managers about potential FLSA violations in their departments. 
C)  Susan discusses specific information about the company's federal contracts with friends during lunch. 
D)  Susan places employee payroll files in a cabinet to which only she and her supervisor have access.

Question 7

The payroll volume tends to be greater for small companies than for large businesses.

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

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

Accepted Answer

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

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

An accountant must remain current in his or her knowledge of current payroll practices,according to the ethical principle of __________________.

Accepted Answer

A)  Responsibilities. 
B)  Public Interest. 
C)  Due Care. 
D)  Integrity. 
A)  Responsibilities. 
B)  Public Interest. 
C)  Due Care. 
D)  Integrity.

Question 12

Which of the following is (are)payroll-related issues that large companies may experience (Select all that apply)?

Accepted Answer

A)  Geographic dispersion. 
B)  Multiple departments. 
C)  Homogeneous workforce. 
D)  Increased task variation. 
A)  Geographic dispersion. 
B)  Multiple departments. 
C)  Homogeneous workforce. 
D)  Increased task variation.

Question 13

Why is outsourced payroll popular among accounting professionals?

Accepted Answer

A)  Payroll processing is always simpler and quicker. 
B)  Data generated by the outsource company is completely accurate. 
C)  Time required for payroll processing is reduced. 
D)  Records generated by outsourced vendors are not subject to retention rules. 
A)  Payroll processing is always simpler and quicker. 
B)  Data generated by the outsource company is completely accurate. 
C)  Time required for payroll processing is reduced. 
D)  Records generated by outsourced vendors are not subject to retention rules.

Question 14

In the event of an ethical breach by a payroll accountant,which entity is ultimately liable for any monetary damages due to stakeholders?

Accepted Answer

A)  The payroll accountant 
B)  The company's CEO or president 
C)  The governmental entity associated with company oversight 
D)  The entity that issued the license to the accountant 
A)  The payroll accountant 
B)  The company's CEO or president 
C)  The governmental entity associated with company oversight 
D)  The entity that issued the license to the accountant

Question 15

Michael is the payroll accountant for a non-profit.In his personal life,he is also a single father of three young children.On the day that payroll is supposed to be issued,his children are sick and he is unavailable to be at work.The employee's paychecks cannot be issued without his presence.Which ethical principle most closely governs this situation?

Accepted Answer

A)  Responsibilities 
B)  Objectivity and Independence 
C)  Integrity 
D)  Public Interest 
A)  Responsibilities 
B)  Objectivity and Independence 
C)  Integrity 
D)  Public Interest

Question 16

Joel is the payroll accountant for a company.He has been notified of an impending audit of all accounting records.What is Joel's role in the audit?

Accepted Answer

A)  He is required to be absent during the audit to avoid influencing the results. 
B)  He must agree to serve on the audit staff for other companies. 
C)  He must be available to answer questions and grant access to payroll records. 
D)  He must prevent privacy breaches by disallowing access to payroll records. 
A)  He is required to be absent during the audit to avoid influencing the results. 
B)  He must agree to serve on the audit staff for other companies. 
C)  He must be available to answer questions and grant access to payroll records. 
D)  He must prevent privacy breaches by disallowing access to payroll records.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The IRS uses EINs to track employers for tax purposes.

Accepted Answer

A) True 
 B)False

Question 19

The _______________ prohibited discrimination based on race,creed,color,gender,or national origin.

Accepted Answer

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

Question 20

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

Which of the following is not an option available to payroll accountants?

The Fair Labor Standards Act contains provisions for:

The USERRA legislation provided the following:

Worker's compensation insurance premiums:

Which of the following is among the guidelines for the AICPA Code of Ethics?

Which of the following represents a payroll system privacy breach by Susan,a payroll accountant?

The payroll volume tends to be greater for small companies than for large businesses.

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

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

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

An accountant must remain current in his or her knowledge of current payroll practices,according to the ethical principle of __________________.

Which of the following is (are)payroll-related issues that large companies may experience (Select all that apply)?

Why is outsourced payroll popular among accounting professionals?

In the event of an ethical breach by a payroll accountant,which entity is ultimately liable for any monetary damages due to stakeholders?

Joel is the payroll accountant for a company.He has been notified of an impending audit of all accounting records.What is Joel's role in the audit?

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

The IRS uses EINs to track employers for tax purposes.

The _______________ prohibited discrimination based on race,creed,color,gender,or national origin.

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

Payroll System Procedures

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Payroll Register, employees Earning Records, and Accounting System Entries

Filters

Exam 1: Payroll Practices and System Fundamentals

Which of the following is not an option available to payroll accountants?

The Fair Labor Standards Act contains provisions for:

The USERRA legislation provided the following:

Worker's compensation insurance premiums:

Which of the following is among the guidelines for the AICPA Code of Ethics?

Which of the following represents a payroll system privacy breach by Susan,a payroll accountant?

The payroll volume tends to be greater for small companies than for large businesses.

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

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

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

An accountant must remain current in his or her knowledge of current payroll practices,according to the ethical principle of __________________.

Which of the following is (are)payroll-related issues that large companies may experience (Select all that apply)?

Why is outsourced payroll popular among accounting professionals?

In the event of an ethical breach by a payroll accountant,which entity is ultimately liable for any monetary damages due to stakeholders?

Joel is the payroll accountant for a company.He has been notified of an impending audit of all accounting records.What is Joel's role in the audit?

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

The IRS uses EINs to track employers for tax purposes.

The _______________ prohibited discrimination based on race,creed,color,gender,or national origin.

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

Payroll System Procedures

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Payroll Register, employees Earning Records, and Accounting System Entries

Filters