Question 1

For recording time spent on specific work projects,manufacturing companies usually use a

Accepted Answer

A)   job time ticket.
B)   time card.
C)   time clock.
D)   labor time card. A

Question 2

Which of the following is a control that can be implemented to help prevent paychecks being issued to a "phantom" or "ghost" employee?

Accepted Answer

A)   The cashier should sign all payroll checks.
B)   Sequentially prenumber all payroll checks.
C)   Use an imprest account to clear payroll checks.
D)   Paychecks should be physically distributed by someone who does not authorize time data or record payroll. D

Question 3

Pay rate information is stored in

Accepted Answer

A)   employees' personnel files.
B)   employee subsidiary ledgers.
C)   the payroll master file.
D)   electronic time cards. C

Question 4

Why are accurate cumulative earnings records important?

Accepted Answer

The answer of Why are accurate cumulative earnings records important?...

Question 5

Explain the functions of the payroll register,deduction register,and earnings statement.

Accepted Answer

The answer of Explain the functions of the payroll register,deduction...

Question 6

All of the following are controls that should be implemented in a payroll process,except

Accepted Answer

A)   supervisors distribute paychecks since they should know all employees in their department.
B)   someone independent of the payroll process should reconcile the payroll bank account.
C)   sequential numbering of paychecks and accounting for the numbers.
D)   restrict access to blank payroll checks and documents.

Question 7

The employer pays a portion of some payroll taxes and employee benefits.Both the employee and employer pay which benefit or tax listed below?

Accepted Answer

A)   social security taxes
B)   federal income taxes
C)   state income taxes
D)   none of the above

Question 8

One good way to eliminate paper paychecks is to

Accepted Answer

A)   pay in cash only.
B)   pay with money orders.
C)   use direct deposit.
D)   use Electronic Funds Transfer.

Question 9

Which of the following is a control that addresses the threat of unauthorized changes to the payroll master file?

Accepted Answer

A)   Field checks
B)   Batch totals
C)   Segregation of duties
D)   Sound hiring procedures

Question 10

Regarding the use of incentives,commissions and bonuses in payroll,which of the following statements is false?

Accepted Answer

A)   Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses.
B)   Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured.
C)   Incentive schemes can result in undesirable behavior.
D)   All of the above are true.

Question 11

What is the difference between a payroll service bureau and a professional employer organization?

Accepted Answer

The answer of What is the difference between a payroll...

Question 12

Companies that specialize in processing payroll are known as

Accepted Answer

A)   paycheck distribution companies.
B)   payroll service bureaus.
C)   professional employer organizations.
D)   semi-governmental organizations.

Question 13

Which of the following will limit a firm's potential loss exposure from paycheck forgery?

Accepted Answer

A)   Segregation of check distribution from payroll duties
B)   Prompt redeposit of unclaimed paychecks
C)   A separate payroll bank account
D)   Direct deposit of checks

Question 14

The key to preventing unauthorized changes to the payroll master file is

Accepted Answer

A)   hiring totally honest people to access and make changes to this file.
B)   segregation of duties between the preparation of paychecks and their distribution.
C)   segregation of duties between the authorization of changes and the physical handling of paychecks.
D)   having the controller closely review and then approve any changes to the master file.

Question 15

What factors should be considered in outsourcing payroll to a payroll service bureau? Discuss the advantages and disadvantages of using a payroll service bureau to process a payroll.

Accepted Answer

The answer of What factors should be considered in outsourcing...

Question 16

The threat of violation of employment laws relates directly to which activity?

Accepted Answer

A)   payroll processing
B)   collecting employee time data
C)   hiring and recruiting
D)   all of the above

Question 17

Which of the following will contribute to the efficiency of a payroll system?

Accepted Answer

A)   Segregation of check distribution from payroll duties
B)   Prompt redeposit of unclaimed paychecks
C)   A separate payroll bank account
D)   Direct deposit of checks

Question 18

As the payroll system processes each payroll transaction,the system should also perform which activity listed below?

Accepted Answer

A)   allocate labor costs to appropriate general ledger accounts
B)   use cumulative totals generated from a payroll to create a summary journal entry to be posted to the general ledger
C)   both A and B above
D)   The HRM system should not perform either activity A or B.

Question 19

Describe benefits and threats of incentive and bonus programs.

Accepted Answer

The answer of Describe benefits and threats of incentive and...

Question 20

When using electronic documents,________ increase the accuracy of data entry.

Accepted Answer

A)   access controls
B)   separation of duties
C)   general controls
D)   application controls

Exam 15: The Human Resources Management and Payroll Cycle

For recording time spent on specific work projects,manufacturing companies usually use a

Which of the following is a control that can be implemented to help prevent paychecks being issued to a "phantom" or "ghost" employee?

Pay rate information is stored in

Why are accurate cumulative earnings records important?

Explain the functions of the payroll register,deduction register,and earnings statement.

All of the following are controls that should be implemented in a payroll process,except

The employer pays a portion of some payroll taxes and employee benefits.Both the employee and employer pay which benefit or tax listed below?

One good way to eliminate paper paychecks is to

Which of the following is a control that addresses the threat of unauthorized changes to the payroll master file?

Regarding the use of incentives,commissions and bonuses in payroll,which of the following statements is false?

What is the difference between a payroll service bureau and a professional employer organization?

Companies that specialize in processing payroll are known as

Which of the following will limit a firm's potential loss exposure from paycheck forgery?

The key to preventing unauthorized changes to the payroll master file is

What factors should be considered in outsourcing payroll to a payroll service bureau? Discuss the advantages and disadvantages of using a payroll service bureau to process a payroll.

The threat of violation of employment laws relates directly to which activity?

Which of the following will contribute to the efficiency of a payroll system?

As the payroll system processes each payroll transaction,the system should also perform which activity listed below?

Describe benefits and threats of incentive and bonus programs.

When using electronic documents,________ increase the accuracy of data entry.