Question 1

The payroll department performs all of the following except

Accepted Answer

A)  prepares the payroll register 
B)  distributes paychecks 
C)  updates employee payroll records 
D)  prepares paychecks

Question 2

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

Question 3

In the payroll subsystem,which function should distribute paychecks?

Accepted Answer

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

Question 4

Describe how the Fixed Asset System differs from the expenditure cycle.

Accepted Answer

The answer of Describe how the Fixed Asset System differs...

Question 5

All of the following are processed by the Fixed Asset System except

Accepted Answer

A)  sale of unneeded equipment 
B)  purchase of raw materials 
C)  repair of production equipment 
D)  purchase of a new plant

Question 6

What negative consequences result when fixed asset records include assets that are no longer owned by the firm?

Accepted Answer

The answer of What negative consequences result when fixed asset...

Question 7

Payroll checks are typically drawn on

Accepted Answer

A)  the regular checking account 
B)  a payroll imprest account 
C)  a wages payable account 
D)  petty cash

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