Deck 9: Questions Northern Lights

Question 1

At any time you may change all but one of the following payroll ledger information -

A) the employee personal information
B) the employer's income tax tables
C) the employee income and taxes
D) the employee default deductions

Answer 1

the employer's income tax tables

Question 2

You must enter historical payroll income information for employees in the -

A) historical income tab screen
B) payroll ledger screen
C) year-to-date income tab screen
D) none of the above

Answer 2

payroll ledger screen

Question 3

The salesperson for a sale is entered in -

A) the payroll journal in the invoice field
B) the sales journal in the employee field
C) the sales journal in the salesperson field
D) the sales journal in the job category field

Answer 3

the sales journal in the salesperson field

Question 4

Which of the following are not defined in the payroll ledger settings screens -

A) payroll tax deduction settings
B) payroll liability and expense linked accounts
C) income and deduction names
D) employee information and historical deductions

Question 5

The default deduction rate for WCB (WSIB) deductions is entered in -

A) the deductions tab screen in the employee ledger record
B) the payroll ledger income settings screen
C) the payroll ledger taxes screen
D) the taxes tab screen in the employee ledger record

Question 6

When finishing the history for the payroll ledger -

A) the employee history cannot be changed
B) the employee personal information cannot be corrected
C) the employee default deduction amounts cannot be corrected
D) the employee income and taxes cannot be corrected

Question 7

To create an employee benefit you would -

A) choose allow benefits on the payroll settings screen
B) choose the taxable benefit option on the taxes tab screen in the employee ledger
C) enter the benefit amount on the taxes tab screen in the employee ledger
D) none of the above

Question 8

Which one of the following statements about payroll linked accounts is correct -

A) each employee has a unique linked wage expense account
B) each employee must be linked to the same wage expense account
C) each type of income must be linked to a unique expense account
D) none of the above

Question 9

What steps are involved in setting up the payroll ledger -

A) enter the payroll names and settings defaults
B) enter the linked payroll accounts for liabilities and expenses
C) enter the employee information and historical deductions
D) all of the above

Question 10

The employee default deductions -

A) are the same for all employees
B) are entered into the employee ledger records
C) cannot be changed once you finish entering the history
D) are defined by the Canada Revenue Agency tax laws

Question 11

The sales by salesperson report -

A) can be viewed by selecting from the Reports - Payroll menu
B) can be viewed from the sales invoice
C) shows only sales of inventory items
D) can be helpful in calculating sales commissions

Question 12

If an employee has regular payroll deductions for a charitable donation contribution, but wants to stop making these contributions, you should -

A) remember to change the amount in the payroll journal when you prepare a pay cheque
B) ask the employee to reconsider because the contributions help you reach a goal for total donations
C) change the amount in the remittances screen
D) make the change in the ledger record for the employee

Question 13

Creating the employees' records for payroll ledgers requires -

A) input of personal and income and tax information
B) input of historical income and deduction information
C) input of default deduction information
D) all of the above

Question 14

If historical payroll deduction data is not entered you will -

A) allow tracking of year-to-date income
B) not be able to track year-to-date deductions
C) affect the current earnings and deductions
D) allow proper T4 statement information

Question 15

How are the linked accounts for CPP different from the linked accounts for income tax -

A) CPP has a linked liability account only; income tax has an expense account only
B) CPP has a linked expense account only; income tax has a liability account only
C) CPP has both linked liability and expense accounts; income tax has a liability account only
D) none of the above

Question 16

Which of the following choices include payroll linked accounts -

A) assets - supplies, insurance
B) liabilities - advances payable
C) liabilities - CPP, EI, EHT
D) revenue, purchases, discounts

Question 17

User-defined payroll expenses -

A) are the same as other employer payroll expenses such as contributions to Employment Insurance (EI)
B) are linked to liability and expense accounts
C) are entered in the employee ledger deductions tab screen
D) are the same amount for all employees

Question 18

Corrections may be made to any payroll ledger personal information field by -

A) double clicking the error to select it and typing the correct details
B) entering a reminder Memo and typing the correct details
C) selecting the proper default and typing the correct details
D) you cannot make changes to these fields

Question 19

Which of the following is not involved in setting up employee entitlements -

A) naming the entitlements
B) entering linked accounts for the entitlements
C) entering the number of hours usually worked in a day
D) entering the number of days of entitlement accrued for the employee

Question 20

Which one of the following statements about payroll linked accounts is incorrect -

A) the default linked wage expense account is entered in the payroll linked accounts screen
B) the wage expense for all employees must be linked to the same wage expense accounts
C) you can enter a unique linked wage expense account for each employee
D) in the employee ledger record you can select the default linked wage expense account

Question 21

When you create a new job category -

A) all employees are assigned to the new category initially
B) no employees are assigned to new category initially
C) all employees in this category are not salespersons initially
D) you cannot assign an employee from another category to the new category at the same time

Question 22

Setting up for payroll remittances does not include -

A) linking each deduction to a supplier/payroll authority
B) entering an opening balance for each supplier/payroll authority
C) identifying suppliers as payroll authorities in the supplier ledger records
D) all of the above are steps in setting up payroll remittances

Question 23

When EI amounts are missing from a payroll journal entry in a February paycheque, you should check -

A) whether or not you entered the historical amount correctly
B) whether or not the employee's date of birth is correct
C) whether or not the linked accounts are correct
D) a and c are correct

Question 24

Which of the following statements is true about linked accounts for the Payroll module -

A) the Vacation Payable linked account is not required when all employees are salaried
B) the Payroll linked bank account is not required when all employees have their pay cheques deposited directly to their bank accounts
C) none of the linked accounts for Payroll are essential linked accounts that are required to finish the history
D) the Advances Receivable linked account is an essential account (required to finish the history)

Question 25

Payroll benefits are -

A) payments made to employees for expenses like tuition and medical insurance
B) donations made to other organizations on behalf of an employee
C) usually taxable income
D) non-taxable income

Question 26

Paid sick leave or paid vacation time are -

A) defined for individual employees on the benefits tab screen in the payroll ledger
B) defined for all employees on a payroll settings screen
C) modified in the payroll ledger records for individual employees
D) b and c above are correct

Question 27

Setting up for payroll remittances includes -

A) marking Remittance suppliers in Payroll setup
B) entering the amount to be submitted to each payroll authority
C) entering the historical amount paid to each payroll authority
D) choose exempt from taxes for the supplier/payroll authority

Question 28

If a CPP amount is missing from a payroll journal entry, it is most likely that -

A) no linked account is entered for CPP Payable
B) the employee's date of birth was entered incorrectly
C) CPP is not required in the province of employment
D) all of the above are possible explanations for the missing amount

Question 29

Setting up payroll entitlements includes -

A) adding a user-defined expense for each entitlement
B) adding linked liability and expense accounts for the entitlement
C) adding linked liability accounts for the entitlement
D) none of the above

Question 30

When CPP amounts are missing from payroll journal entries only in the December paycheques, it may be because -

A) you entered the historical amount incorrectly
B) the employee's date of birth is incorrect
C) the employee has already paid the maximum amount for the year
D) all of the above

Question 31

Which of the following is true of income types -

A) income types are defined on the payroll settings screen
B) repayment and salary are income types you can select
C) regular and overtime pay are defined as different income types
D) the income type for benefits and advance can be changed

Question 32

Paid sick leave and paid vacation time are examples of -

A) benefits
B) income
C) entitlements
D) all of the above

Question 33

When you set up payroll remittances, the Balance Forward amounts -

A) are the same as the opening trial balance liability amounts for that date
B) are the same as the opening trial balance expense amounts for that date
C) the balance forward date must be the same as the fiscal start date
D) both a and c above are correct

Question 34

The following Payroll linked accounts are essential accounts that are required to finish the history -

A) the linked Vacation Payable account
B) the linked Advances Receivable account
C) the linked Payroll bank account
D) both a & b are correct

Question 35

To set up an employee for direct payroll deposit you must do all but one of the following -

A) enter the percentage of the pay that is to be deposited to each bank account
B) enter the bank, transit and account numbers as the bank account details
C) enter the total payroll amount that is deposited
D) choose the option direct deposit paycheque for this employee

Question 36

Which of the following statements is true about job categories -

A) by default, all employee names appear as in this job category when you create a new category
B) to define or name job categories, choose job categories from the setup menu - settings screen, payroll list
C) all employee names can be selected on sales invoices in the salesperson field
D) to assign employees to job categories, choose employee categories from the setup menu - settings screen, payroll list

Question 37

Settings for deductions and income are defined on -

A) the payroll deductions settings screen
B) payroll names setting screen
C) the taxes settings screen
D) none of the above