Question 1

When payroll is processed using batch processing, which of the following would not be part of the payroll process?

Accepted Answer

A) Human resources department would be responsible for keying employee information into the master file. 
B) The timekeeper will accumulate all time sheets and enter them into the computer system in batches. 
C) The timekeeper should prepare control totals and hash totals in order to check the system before the paychecks are generated. 
D) Human resources should prepare control totals and hash totals in order to check the system before the paychecks are generated.

Question 2

Which of the following is not an advantage of fixed asset software systems when compared with spreadsheets?

Accepted Answer

A) Better ability to handle non-financial data such as asset location. 
B) Easier to apply different depreciation policies to different assets. 
C) Manual processes to link to the general ledger. 
D) Expanded opportunities for customized reporting.

Question 3

Which of the following correctly states a reconciliation process to be completed related to payroll?

Accepted Answer

A) Time sheets reconciled to the payroll register. 
B) Payroll register to the general ledger. 
C) Time sheets to the production reports. 
D) Production reports to the general ledger.

Question 4

This record, prepared by the payroll department, is a complete listing of salary or wage detail for all employees for a given time.

Accepted Answer

A) Payroll journal 
B) General ledger 
C) Employee record 
D) Payroll register

Question 5

Notable differences between the acquisition of fixed assets and the acquisition of inventory includes:

Accepted Answer

A) The placement of the acquired assets - user department for fixed assets, warehouse for inventory. 
B) The inclusion of a fixed asset department instead of the inventory control department. 
C) Both of the above. 
D) None of the above.

Question 6

Which of the following types of employees are typically required to prepare very detailed to-the-minute) time reports, identifying the types of projects worked on and the exact time spent on each?

Accepted Answer

A) Salary employees 
B) Production employees 
C) Accounting employees 
D) Management

Question 7

Most companies can justify the use of specialized asset management software programs instead of the spreadsheets or traditional manual systems for all of the following reasons, except:

Accepted Answer

A) The abundance of fixed asset data 
B) The time-consuming and tedious requirements for tracking changes 
C) The number of different methods of accounting for depreciation 
D) The intricacy of the tax laws

Question 8

A challenging area of payroll computation is computing the amount of deductions related to each employee's pay.

Accepted Answer

A) True 
 B)False

Question 9

In order to smooth out the payroll process and avoid the heavy workload that falls at the end of the payroll period, many companies will use this type of system - one that integrates their human resources and payroll functions.This system makes real-time personnel data available and the general ledger and production system can be automatically updated at the end of the payroll period.

Accepted Answer

A) Online Software Systems 
B) Batch Processing 
C) Electronic Timekeeping 
D) Outsourcing of Payroll Services

Question 10

There are many risks that may affect the payroll and fixed asset transactions.Which of the following is not one of those risks?

Accepted Answer

A) Recorded transactions may not be valid. 
B) Expenditure transactions may be recorded in the wrong account. 
C) Valid expenditures recorded properly by the wrong employee. 
D) Transactions may not be recorded in a timely manner.

Question 11

The three phases of fixed assets processes, that span the entire useful life of the assets, include all of the following, except:

Accepted Answer

A) Depreciation 
B) Acquisition 
C) Disposal 
D) Continuance

Question 12

This department is responsible for maintaining records for each job and each employee within the organization, as well as tracking job vacancies and supporting the company's recruitment efforts.

Accepted Answer

A) Salary and Wage Administration Department 
B) Vice President for Employees Department 
C) Employee Services Department 
D) Human Resources Department

Question 13

The purchase of fixed assets is likely to require different authorization processes than the purchase of inventory.Which of the following is not likely to be part of the authorization of fixed assets?

Accepted Answer

A) Specific authorization. 
B) Inclusion in the capital budget. 
C) An investment analysis or feasibility analysis of the purchase. 
D) Approval of the depreciation schedule.

Question 14

Which of the following would be a correct way to compute the gross pay for an employee?

Accepted Answer

A) Hours Worked times Authorized Pay Rate 
B) Hours Worked times Authorized Pay Rate minus Withholding Taxes 
C) Net Pay minus Authorized Deductions 
D) Net Pay times Withholding Taxes

Question 15

Although it is uncommon, some companies maintain separate checking accounts that are used for payroll transactions.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not an independent check within payroll processes?

Accepted Answer

A) Time sheets are reconciled with production records. 
B) Time sheets are reconciled with the payroll register. 
C) Paychecks are prepared on prenumbered checks. 
D) The payroll register is reconciled with the general ledger.

Question 17

Which of the following would be a correct way to compute the net pay for an employee?

Accepted Answer

A) Hours Worked times Authorized Pay Rate 
B) Gross Pay minus Withholding Taxes 
C) Gross Pay minus Authorized Deductions 
D) Hours Worked times Withholding Tax Rate

Question 18

Which of the following questions would be least likely to appear on an internal control questionnaire regarding the initiation and execution of new property, plant, and equipment purchases?

Accepted Answer

A) Are requests for repairs approved by someone higher than the department initiating the request? 
B) Are prenumbered purchase orders used and accounted for? 
C) Are purchase requisitions reviewed for consideration of soliciting competitive bids? 
D) Is access to the assets restricted and monitored?

Question 19

Which of the following correctly lists activities of the Payroll Process in chronological order?

Accepted Answer

A) Time sheet submitted by employee; time sheet approved; paycheck signed by management; update General Ledger 
B) Time sheet submitted by employee; paycheck signed by management; time sheet approved; update General Ledger 
C) Time sheet submitted by employee; update General Ledger; paycheck signed by management; time sheet approved 
D) Time sheet submitted by employee; update General Ledger; time sheet approved; paycheck signed by management

Question 20

Members of management are not required to specifically approve an employee hired by the company when the new employee has been screened by an employment office.

Accepted Answer

A) True 
 B)False

Exam 10: Expenditures Processes and Controls Payroll and Fixed Assets

When payroll is processed using batch processing, which of the following would not be part of the payroll process?

Which of the following is not an advantage of fixed asset software systems when compared with spreadsheets?

Which of the following correctly states a reconciliation process to be completed related to payroll?

This record, prepared by the payroll department, is a complete listing of salary or wage detail for all employees for a given time.

Notable differences between the acquisition of fixed assets and the acquisition of inventory includes:

Which of the following types of employees are typically required to prepare very detailed to-the-minute) time reports, identifying the types of projects worked on and the exact time spent on each?

Most companies can justify the use of specialized asset management software programs instead of the spreadsheets or traditional manual systems for all of the following reasons, except:

A challenging area of payroll computation is computing the amount of deductions related to each employee's pay.

There are many risks that may affect the payroll and fixed asset transactions.Which of the following is not one of those risks?

The three phases of fixed assets processes, that span the entire useful life of the assets, include all of the following, except:

This department is responsible for maintaining records for each job and each employee within the organization, as well as tracking job vacancies and supporting the company's recruitment efforts.

The purchase of fixed assets is likely to require different authorization processes than the purchase of inventory.Which of the following is not likely to be part of the authorization of fixed assets?

Which of the following would be a correct way to compute the gross pay for an employee?

Although it is uncommon, some companies maintain separate checking accounts that are used for payroll transactions.

Which of the following is not an independent check within payroll processes?

Which of the following would be a correct way to compute the net pay for an employee?

Which of the following questions would be least likely to appear on an internal control questionnaire regarding the initiation and execution of new property, plant, and equipment purchases?

Which of the following correctly lists activities of the Payroll Process in chronological order?

Members of management are not required to specifically approve an employee hired by the company when the new employee has been screened by an employment office.