Question 1

Which of the following statements is not true?

Accepted Answer

A)  Routine payroll processing begins with the submission of time cards. 
B)  Payroll clerks must verify the hours reported on the time cards. 
C)  Payroll reconciles personnel action forms with time cards and prepares paychecks. 
D)  Cash disbursements signs paychecks and forwards them to the paymaster for distribution. 
A)  Routine payroll processing begins with the submission of time cards. 
B)  Payroll clerks must verify the hours reported on the time cards. 
C)  Payroll reconciles personnel action forms with time cards and prepares paychecks. 
D)  Cash disbursements signs paychecks and forwards them to the paymaster for distribution. B

Question 2

Explain the integration of payroll with the human resource management (HRM) system that often happens in moderate and large sized organizations.

Accepted Answer

The HRM system captures and processes a wide range of personnel-related data, including employee benefits, labor resource planning, employee relations, employee skills, internal training, personnel actions (pay rates, deductions and so on), and payroll processing. HRM systems provide real-time access to personnel files for purposes of direct inquiries and making changes in employee status as they occur. Human resource checks enter data into the employee record file in real time from terminals.

Question 3

The document that captures the total amount of time that individual workers spend on each production job is called a

Accepted Answer

A)  time card 
B)  job ticket 
C)  personnel action form 
D)  labor distribution form 
A)  time card 
B)  job ticket 
C)  personnel action form 
D)  labor distribution form B

Question 4

Work-in-process records are updated by payroll personnel.

Accepted Answer

A) True 
 B)False

Question 5

Which control is not a part of the Fixed Asset System?

Accepted Answer

A)  formal analysis of the purchase request 
B)  review of the assumptions used in the capital budgeting model 
C)  development of an economic order quantity model 
D)  estimates of anticipated cost savings 
A)  formal analysis of the purchase request 
B)  review of the assumptions used in the capital budgeting model 
C)  development of an economic order quantity model 
D)  estimates of anticipated cost savings

Question 6

Explain the purpose of each of the following documents used in the payroll system:
the personnel action form, the job ticket, the time card.

Accepted Answer

The personnel action form is a document

Question 7

Discuss outsourcing the payroll function. What are the advantages and risks?

Accepted Answer

Many organizations outsource their payro

Question 8

In the payroll subsystem, which function should distribute paychecks?

Accepted Answer

A)  personnel 
B)  timekeeping 
C)  paymaster 
D)  payroll 
A)  personnel 
B)  timekeeping 
C)  paymaster 
D)  payroll

Question 9

Which of the following is NOT an input control to reduce the risks of data entry errors and payroll fraud for a company with a mobile or distributed work force?

Accepted Answer

A)  Limit tests that detect excessive hours 
B)  Check digits that detect transcription errors in employee identification 
C)  Biometric scanners, swipe cards, and PINS 
D)  Multilevel security that achieves segregation of duties 
A)  Limit tests that detect excessive hours 
B)  Check digits that detect transcription errors in employee identification 
C)  Biometric scanners, swipe cards, and PINS 
D)  Multilevel security that achieves segregation of duties

Question 10

The depreciation schedule shows when assets are fully depreciated.

Accepted Answer

A) True 
 B)False

Question 11

Which department is responsible for approving changes in pay rates for employees?

Accepted Answer

A)  payroll 
B)  treasurer 
C)  personnel 
D)  cash disbursements 
A)  payroll 
B)  treasurer 
C)  personnel 
D)  cash disbursements

Question 12

Which of the following is not a characteristic of the Fixed Asset System?

Accepted Answer

A)  Acquisitions are routine transactions requiring general authorization. 
B)  Retirements are reported on an authorized disposal report form. 
C)  Acquisition cost is allocated over the expected life of the asset. 
D)  Transfer of fixed assets among departments is recorded in the fixed asset subsidiary ledger. 
A)  Acquisitions are routine transactions requiring general authorization. 
B)  Retirements are reported on an authorized disposal report form. 
C)  Acquisition cost is allocated over the expected life of the asset. 
D)  Transfer of fixed assets among departments is recorded in the fixed asset subsidiary ledger.

Question 13

Which of the following situations represents an internal control weakness?

Accepted Answer

A)  Timekeeping is independent of the payroll department. 
B)  Paychecks are distributed by the employees' immediate supervisor. 
C)  Time cards are reconciled with job tickets. 
D)  Personnel is responsible for updating employee records, including creation of records for new hires. 
A)  Timekeeping is independent of the payroll department. 
B)  Paychecks are distributed by the employees' immediate supervisor. 
C)  Time cards are reconciled with job tickets. 
D)  Personnel is responsible for updating employee records, including creation of records for new hires.

Question 14

Why should employee paychecks be drawn against a special checking account?

Accepted Answer

A separate imprest account is establishe

Question 15

Inventory control authorizes fixed asset purchases with a purchase requisition.

Accepted Answer

A) True 
 B)False

Question 16

Asset maintenance involves

Accepted Answer

A)  the recording of periodic depreciation 
B)  adjusting the asset records to reflect the cost of physical improvements 
C)  keeping track of the physical location of the assets 
D)  all of the above 
A)  the recording of periodic depreciation 
B)  adjusting the asset records to reflect the cost of physical improvements 
C)  keeping track of the physical location of the assets 
D)  all of the above

Question 17

Objectives of the Fixed Asset System do not include

Accepted Answer

A)  authorizing the acquisition of fixed assets 
B)  recording depreciation expense 
C)  computing gain and/or loss on disposal of fixed assets 
D)  maintaining a record of the fair market value of all fixed assets 
A)  authorizing the acquisition of fixed assets 
B)  recording depreciation expense 
C)  computing gain and/or loss on disposal of fixed assets 
D)  maintaining a record of the fair market value of all fixed assets

Question 18

The personnel department authorizes changes in employee pay rates.

Accepted Answer

A) True 
 B)False

Question 19

What is recorded by the asset maintenance part of the Fixed Asset System?

Accepted Answer

periodic depreciation followin

Question 20

The Fixed Asset Systems does all of the following except

Accepted Answer

A)  records acquisition of assets 
B)  records improvements to assets 
C)  estimates the fair market value of assets in service 
D)  records the disposal of assets 
A)  records acquisition of assets 
B)  records improvements to assets 
C)  estimates the fair market value of assets in service 
D)  records the disposal of assets

Which of the following statements is not true?

Explain the integration of payroll with the human resource management (HRM) system that often happens in moderate and large sized organizations.

The document that captures the total amount of time that individual workers spend on each production job is called a

Work-in-process records are updated by payroll personnel.

Which control is not a part of the Fixed Asset System?

Explain the purpose of each of the following documents used in the payroll system: the personnel action form, the job ticket, the time card.

Discuss outsourcing the payroll function. What are the advantages and risks?

In the payroll subsystem, which function should distribute paychecks?

Which of the following is NOT an input control to reduce the risks of data entry errors and payroll fraud for a company with a mobile or distributed work force?

The depreciation schedule shows when assets are fully depreciated.

Which department is responsible for approving changes in pay rates for employees?

Which of the following is not a characteristic of the Fixed Asset System?

Which of the following situations represents an internal control weakness?

Why should employee paychecks be drawn against a special checking account?

Inventory control authorizes fixed asset purchases with a purchase requisition.

Asset maintenance involves

Objectives of the Fixed Asset System do not include

The personnel department authorizes changes in employee pay rates.

What is recorded by the asset maintenance part of the Fixed Asset System?

The Fixed Asset Systems does all of the following except

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

Financial Reporting, and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, Program Changes, and Application Controls

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Exam 6: The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

Which of the following statements is not true?

Explain the integration of payroll with the human resource management (HRM) system that often happens in moderate and large sized organizations.

The document that captures the total amount of time that individual workers spend on each production job is called a

Work-in-process records are updated by payroll personnel.

Which control is not a part of the Fixed Asset System?

Explain the purpose of each of the following documents used in the payroll system: the personnel action form, the job ticket, the time card.

Discuss outsourcing the payroll function. What are the advantages and risks?

In the payroll subsystem, which function should distribute paychecks?

Which of the following is NOT an input control to reduce the risks of data entry errors and payroll fraud for a company with a mobile or distributed work force?

The depreciation schedule shows when assets are fully depreciated.

Which department is responsible for approving changes in pay rates for employees?

Which of the following is not a characteristic of the Fixed Asset System?

Which of the following situations represents an internal control weakness?

Why should employee paychecks be drawn against a special checking account?

Inventory control authorizes fixed asset purchases with a purchase requisition.

Asset maintenance involves

Objectives of the Fixed Asset System do not include

The personnel department authorizes changes in employee pay rates.

What is recorded by the asset maintenance part of the Fixed Asset System?

The Fixed Asset Systems does all of the following except

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

Financial Reporting, and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, Program Changes, and Application Controls

Filters