Question 1

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. B

Question 2

The Consolidated Appropriations Act included an increase in funding for the ________ program.

Accepted Answer

A) Medicare 
B) E-Verify 
C) Child Health and Infant Protection 
D) Disability Accommodations 
A) Medicare 
B) E-Verify 
C) Child Health and Infant Protection 
D) Disability Accommodations B

Question 3

Why do different methods of time collection devices (e.g. ,time cards,biometric devices)exist among companies?

Accepted Answer

A) They replace personnel with computers,which prevents ethical issues. 
B) They maintain precise tracking of employee whereabouts. 
C) They promote compensation accuracy that matches company needs. 
D) They alleviate the need for internal control. 
A) They replace personnel with computers,which prevents ethical issues. 
B) They maintain precise tracking of employee whereabouts. 
C) They promote compensation accuracy that matches company needs. 
D) They alleviate the need for internal control. C

Question 4

The main purpose of the Federal Insurance Contributions Act (FICA)was to:

Accepted Answer

A) Provide health insurance for all employees. 
B) Mandate worker's compensation insurance for employers. 
C) Provide life insurance for all employees. 
D) Provide benefits for workers who were unable to work because of age,disability,or death. 
A) Provide health insurance for all employees. 
B) Mandate worker's compensation insurance for employers. 
C) Provide life insurance for all employees. 
D) Provide benefits for workers who were unable to work because of age,disability,or death.

Question 5

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.

Question 6

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 7

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.

Question 8

Positive aspects of the use of Internet-based accounting software includes which of the following?

Accepted Answer

A) Suitability for highly complex large businesses. 
B) Continual updates for tax rate and other changes. 
C) Unlimited options for company personnel. 
D) Fixed software layout for consistency among companies. 
A) Suitability for highly complex large businesses. 
B) Continual updates for tax rate and other changes. 
C) Unlimited options for company personnel. 
D) Fixed software layout for consistency among companies.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is(are)payroll-related issues that large companies may experience? (You may select more than one answer. )

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 11

Employment legislation during the 1930s included which of the following Acts:

Accepted Answer

A) FLSA,FUTA,and FICA. 
B) ADEA,Davis-Bacon Act,and FLSA. 
C) Walsh-Healey Act,FICA,and ERISA. 
D) FUTA,ADA,and FLSA. 
A) FLSA,FUTA,and FICA. 
B) ADEA,Davis-Bacon Act,and FLSA. 
C) Walsh-Healey Act,FICA,and ERISA. 
D) FUTA,ADA,and FLSA.

Question 12

The ________ instituted significant changes to payroll taxes,especially adjustments for inflation and employee income tax computation.

Accepted Answer

A) Social Security Act 
B) Walsh-Healey Public Contracts Act 
C) Tax Cuts and Jobs Act 
D) Affordable Care Act 
A) Social Security Act 
B) Walsh-Healey Public Contracts Act 
C) Tax Cuts and Jobs Act 
D) Affordable Care Act

Question 13

Contemporary payroll practices reflect:

Accepted Answer

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

Question 14

Which court case updated the definition of spouse to include same-sex unions?

Accepted Answer

A) Pollard v.DuPont. 
B) Obergefell v.Hodges. 
C) CIGNA v.Amara. 
D) Young v.Wackenhut. 
A) Pollard v.DuPont. 
B) Obergefell v.Hodges. 
C) CIGNA v.Amara. 
D) Young v.Wackenhut.

Question 15

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

Question 16

The largest challenge to companies that use manual payroll processing is:

Accepted Answer

A) Integrating current tax tables. 
B) Obtaining accurate employee data. 
C) Maintaining accurate personnel records. 
D) Filing appropriate governmental reports. 
A) Integrating current tax tables. 
B) Obtaining accurate employee data. 
C) Maintaining accurate personnel records. 
D) Filing appropriate governmental reports.

Question 17

The Age Discrimination in Employment Act (ADEA)prohibits discrimination in employment practices for workers who are older than age 50.

Accepted Answer

A) True 
 B)False

Question 18

A provision of the ________ made managers and supervisors ineligible to participate in the tip pools,when used for tipped employees.

Accepted Answer

A) Tipped Employees Act 
B) Tax Cuts and Jobs Act 
C) Consolidated Appropriations Act 
D) Equal Employment Act 
A) Tipped Employees Act 
B) Tax Cuts and Jobs Act 
C) Consolidated Appropriations Act 
D) Equal Employment Act

Question 19

The Current Tax Payment Act changed employer remittance of taxes by:

Accepted Answer

A) Instituting the mandatory transfer of payroll tax liabilities. 
B) Legislating the amounts of tax withheld from each employee. 
C) Requiring employers to remit taxes at specific times during the year. 
D) Calling for employers to remit only the current portions of taxes due. 
A) Instituting the mandatory transfer of payroll tax liabilities. 
B) Legislating the amounts of tax withheld from each employee. 
C) Requiring employers to remit taxes at specific times during the year. 
D) Calling for employers to remit only the current portions of taxes due.

Question 20

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 
B) Due Care 
C) Responsibilities 
D) Public Interest 
A) Objectivity 
B) Due Care 
C) Responsibilities 
D) Public Interest

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

The Consolidated Appropriations Act included an increase in funding for the ________ program.

Why do different methods of time collection devices (e.g. ,time cards,biometric devices)exist among companies?

The main purpose of the Federal Insurance Contributions Act (FICA)was to:

The USERRA legislation provided the following:

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

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

Positive aspects of the use of Internet-based accounting software includes which of the following?

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

Which of the following is(are)payroll-related issues that large companies may experience? (You may select more than one answer. )

Employment legislation during the 1930s included which of the following Acts:

The ________ instituted significant changes to payroll taxes,especially adjustments for inflation and employee income tax computation.

Contemporary payroll practices reflect:

Which court case updated the definition of spouse to include same-sex unions?

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 largest challenge to companies that use manual payroll processing is:

The Age Discrimination in Employment Act (ADEA)prohibits discrimination in employment practices for workers who are older than age 50.

A provision of the ________ made managers and supervisors ineligible to participate in the tip pools,when used for tipped employees.

The Current Tax Payment Act changed employer remittance of taxes by:

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

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

The Consolidated Appropriations Act included an increase in funding for the ________ program.

Why do different methods of time collection devices (e.g. ,time cards,biometric devices)exist among companies?

The main purpose of the Federal Insurance Contributions Act (FICA)was to:

The USERRA legislation provided the following:

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

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

Positive aspects of the use of Internet-based accounting software includes which of the following?

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

Which of the following is(are)payroll-related issues that large companies may experience? (You may select more than one answer. )

Employment legislation during the 1930s included which of the following Acts:

The ________ instituted significant changes to payroll taxes,especially adjustments for inflation and employee income tax computation.

Contemporary payroll practices reflect:

Which court case updated the definition of spouse to include same-sex unions?

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 largest challenge to companies that use manual payroll processing is:

The Age Discrimination in Employment Act (ADEA)prohibits discrimination in employment practices for workers who are older than age 50.

A provision of the ________ made managers and supervisors ineligible to participate in the tip pools,when used for tipped employees.

The Current Tax Payment Act changed employer remittance of taxes by:

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