Question 1

What is the difference between termination and resignation,as far as final pay is concerned?

Accepted Answer

A)  Resignation pay may be paid at the next regular pay day, but termination pay is subject to state law. 
B)  Resignation and termination pay are subject to state regulations. 
C)  Resignation pay must be paid within one week and termination pay must be the next business day. 
D) 
Resignation pay must be paid on the next business day and termination pay is due immediately. 
A)  Resignation pay may be paid at the next regular pay day, but termination pay is subject to state law. 
B)  Resignation and termination pay are subject to state regulations. 
C)  Resignation pay must be paid within one week and termination pay must be the next business day. 
D) 
Resignation pay must be paid on the next business day and termination pay is due immediately.

Question 2

Verification of hours worked and pay accuracy is part of the _______________________.

Accepted Answer

A)  Disbursement cycle. 
B)  Accounts payable reconciliation. 
C)  CEO's responsibility. 
D)  Payroll review process. 
A)  Disbursement cycle. 
B)  Accounts payable reconciliation. 
C)  CEO's responsibility. 
D)  Payroll review process.

Question 3

Why is it important for an employer to classify a worker as either an employee or an independent contractor?

Accepted Answer

A)  For tax reporting purposes 
B)  For child support obligations purposes 
C)  For government tracking purposes 
D)  For reimbursement purposes 
A)  For tax reporting purposes 
B)  For child support obligations purposes 
C)  For government tracking purposes 
D)  For reimbursement purposes

Question 4

A company should assign _________________ employee(s) the responsibility for signing payroll checks and disbursements.

Accepted Answer

A)  A limited number of 
B)  Only one 
C)  Its most responsible 
D)  None of the 
A)  A limited number of 
B)  Only one 
C)  Its most responsible 
D)  None of the

Question 5

Which of the following factors is not a determinant in pay rate?

Accepted Answer

A)  Employee skill 
B)  Company location 
C)  Employee age 
D)  Industry benchmarks 
A)  Employee skill 
B)  Company location 
C)  Employee age 
D)  Industry benchmarks

Question 6

A worker who sells life insurance on a full-time basis is considered a statutory employee.

Accepted Answer

A) True 
 B)False

Question 7

Mako was an employee of the Jaeger Corporation.After she voluntarily terminated employment,auditors discovered evidence of fraudulent activity that they traced to her.Mako's records must be retained:

Accepted Answer

A)  For 10 years. 
B)  For 15 years. 
C)  For 20 years. 
D)  Indefinitely. 
A)  For 10 years. 
B)  For 15 years. 
C)  For 20 years. 
D)  Indefinitely.

Question 8

Well-designed internal controls do not promote:

Accepted Answer

A)  Legal compliance and file integrity. 
B)  Opportunities for defalcation. 
C)  Protection against embezzlement. 
D)  Audit trail support. 
A)  Legal compliance and file integrity. 
B)  Opportunities for defalcation. 
C)  Protection against embezzlement. 
D)  Audit trail support.

Question 9

The two main focuses of payroll procedures are company needs and governmental rules.

Accepted Answer

A) True 
 B)False

Question 10

According to the Fair Labor Standards Act,why must pay period information be a part of an employee's payroll file?

Accepted Answer

A)  As a means of tracking time worked for overtime compensation purposes. 
B)  To ensure that the employee receives all compensation earned. 
C)  As a means of ensuring pay equality among employees. 
D)  To document satisfaction of court-ordered obligations. 
A)  As a means of tracking time worked for overtime compensation purposes. 
B)  To ensure that the employee receives all compensation earned. 
C)  As a means of ensuring pay equality among employees. 
D)  To document satisfaction of court-ordered obligations.

Question 11

A firm needs to destroy paper payroll records after the end of the retention period.Which of the following is not an option?

Accepted Answer

A)  Shredding 
B)  Discarding 
C)  Pulping 
D)  Burning 
A)  Shredding 
B)  Discarding 
C)  Pulping 
D)  Burning

Question 12

U.S.workers in foreign subsidiaries are exempt from income taxes.

Accepted Answer

A) True 
 B)False

Question 13

Employee file maintenance is the responsibility of the:

Accepted Answer

A)  Employee. 
B)  Employer. 
C)  Payroll vendor. 
D)  State government. 
A)  Employee. 
B)  Employer. 
C)  Payroll vendor. 
D)  State government.

Question 14

An employer must have an employee complete Form W-4:

Accepted Answer

A)  Before each pay disbursement. 
B)  Each year, upon the employee's anniversary with the firm. 
C)  Every January 1. 
D)  At the time of hire. 
A)  Before each pay disbursement. 
B)  Each year, upon the employee's anniversary with the firm. 
C)  Every January 1. 
D)  At the time of hire.

Question 15

A company should restrict access to payroll files (paper and/or electronic) as a part of _________________.

Accepted Answer

A)  File security internal controls 
B)  Audit trail requirements 
C)  Compliance with company policy 
D)  FATCA requirements 
A)  File security internal controls 
B)  Audit trail requirements 
C)  Compliance with company policy 
D)  FATCA requirements

Question 16

What form is the first step in employer documentation?

Accepted Answer

A)  W-4 
B)  I-9 
C)  SS-4 
D)  W-2 
A)  W-4 
B)  I-9 
C)  SS-4 
D)  W-2

Question 17

_______________________ pay is based on sales revenue,while _______________ pay is based on manufacturing.

Accepted Answer

A)  Exempt; nonexempt 
B)  Commission; overtime 
C)  Piece-rate; commission 
D)  Commission: piece-rate 
A)  Exempt; nonexempt 
B)  Commission; overtime 
C)  Piece-rate; commission 
D)  Commission: piece-rate

Question 18

Which of the following is pervasive in the accounting system?

Accepted Answer

A)  Internal review 
B)  Audit control 
C)  Internal control 
D)  Audit review 
A)  Internal review 
B)  Audit control 
C)  Internal control 
D)  Audit review

Question 19

Employers may choose to omit the employees' Social Security numbers in their employee files.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a commonly used pay frequency?

Accepted Answer

A)  Daily 
B)  Weekly 
C)  Monthly 
D)  Semimonthly 
A)  Daily 
B)  Weekly 
C)  Monthly 
D)  Semimonthly

What is the difference between termination and resignation,as far as final pay is concerned?

Verification of hours worked and pay accuracy is part of the _______________________.

Why is it important for an employer to classify a worker as either an employee or an independent contractor?

A company should assign _________________ employee(s) the responsibility for signing payroll checks and disbursements.

Which of the following factors is not a determinant in pay rate?

A worker who sells life insurance on a full-time basis is considered a statutory employee.

Mako was an employee of the Jaeger Corporation.After she voluntarily terminated employment,auditors discovered evidence of fraudulent activity that they traced to her.Mako's records must be retained:

Well-designed internal controls do not promote:

The two main focuses of payroll procedures are company needs and governmental rules.

According to the Fair Labor Standards Act,why must pay period information be a part of an employee's payroll file?

A firm needs to destroy paper payroll records after the end of the retention period.Which of the following is not an option?

U.S.workers in foreign subsidiaries are exempt from income taxes.

Employee file maintenance is the responsibility of the:

An employer must have an employee complete Form W-4:

A company should restrict access to payroll files (paper and/or electronic) as a part of _________________.

What form is the first step in employer documentation?

_________ pay is based on sales revenue,while _ pay is based on manufacturing.

Which of the following is pervasive in the accounting system?

Employers may choose to omit the employees' Social Security numbers in their employee files.

Which of the following is not a commonly used pay frequency?

Payroll Practices and System Functions

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Payroll Register, Employee Earning Records, and Accounting System Entries

Filters

Exam 2: Payroll System Procedures

What is the difference between termination and resignation,as far as final pay is concerned?

Verification of hours worked and pay accuracy is part of the _______________________.

Why is it important for an employer to classify a worker as either an employee or an independent contractor?

A company should assign _________________ employee(s) the responsibility for signing payroll checks and disbursements.

Which of the following factors is not a determinant in pay rate?

A worker who sells life insurance on a full-time basis is considered a statutory employee.

Mako was an employee of the Jaeger Corporation.After she voluntarily terminated employment,auditors discovered evidence of fraudulent activity that they traced to her.Mako's records must be retained:

Well-designed internal controls do not promote:

The two main focuses of payroll procedures are company needs and governmental rules.

According to the Fair Labor Standards Act,why must pay period information be a part of an employee's payroll file?

A firm needs to destroy paper payroll records after the end of the retention period.Which of the following is not an option?

U.S.workers in foreign subsidiaries are exempt from income taxes.

Employee file maintenance is the responsibility of the:

An employer must have an employee complete Form W-4:

A company should restrict access to payroll files (paper and/or electronic) as a part of _________________.

What form is the first step in employer documentation?

_______________________ pay is based on sales revenue,while _______________ pay is based on manufacturing.

Which of the following is pervasive in the accounting system?

Employers may choose to omit the employees' Social Security numbers in their employee files.

Which of the following is not a commonly used pay frequency?

Payroll Practices and System Functions

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Payroll Register, Employee Earning Records, and Accounting System Entries

Filters

_________ pay is based on sales revenue,while _ pay is based on manufacturing.