Chapter 1 - 5 Payroll Accounting Exam
Questions With Correct Answers
Geographic dispersion Multiple departments Increased task variation. - answerSelect All that
Apply: Which of the following are payroll-related issues that large companies may experience?
According to FMLA, during the time that...
Geographic dispersion Multiple departments Increased task variation. - answer✔Select All that
Apply: Which of the following are payroll-related issues that large companies may experience?
According to FMLA, during the time that an employee is on family leave: - answer✔The
employer is responsible for alerting the employee to changes in processes and benefits.
The Age Discrimination in Employment Act prohibits - answer✔discrimination in employment
practices for workers who are age 35 and older
COBRA - answer✔Which Act extended medical benefits for certain terminated employees?
What is the effect of payroll-related legislation on payroll practice? - answer✔Legislation
highlights the need for firms to create well-designed payroll systems
Payroll accounting systems may involve an integrated software package that contains -
answer✔business-planning tools.
The Current Tax Payment Act changed employer remittance of taxes by: - answer✔Requiring
employers to remit taxes at specific times during the year.
FLSA - answer✔Which Act governs the minimum wage that must be paid to nonexempt
workers?
Integrating current tax tables. - answer✔The largest challenge to companies that use manual
payroll processing is:
Employer Identification Number. - answer✔Employers must request a(n) ______________ for
the Internal Revenue Service to track a firm's payroll tax obligations
Fair Labor Standards Act. - answer✔The classification of workers as exempt and nonexempt
pertains to the provisions of the:
The Fair Labor Standards Act contains provisions for: - answer✔Overtime pay, minimum wage
and working conditions.
Immigration Reform and Control Act of 1986 - answer✔The ___________mandated that
employers verify an employee's legal ability to work in the United States.
Which of the following represents a payroll system privacy breach by Susan, a payroll
accountant? - answer✔Susan discusses specific information about the company's federal
contracts with friends during lunch
Hours worked in excess of 40 per week. - answer✔According to the Fair Labor Standards Act,
nonexempt workers receive overtime for:
Salaried nonexempt workers are eligible for overtime pay. - answer✔What is the difference in
pay practices between salaried exempt and salaried nonexempt workers?
To protect the assets of the company and remit money owed to the government. -
answer✔Which most closely identifies why it is important for payroll accountants to adhere to
the AICPA Code of Ethics?
They promote compensation accuracy that matches company needs. - answer✔Why do different
methods of time collection devices (e.g., time cards, biometric devices) exist among companies?
To fund infrastructure improvements of booming cities. - answer✔Payroll taxes were instituted
by the 16th Amendment to the United States Constitution:
Security of personnel data. - answer✔Many large companies have website portals in which
employees may view and change payroll data. Which of the following is the most significant
concern about such websites?
The purpose of payroll legislation is to: - answer✔Protect the rights of employees by legislating
workplace equity.
Due Care - answer✔Which of the following is among the guidelines for the AICPA Code of
Ethics?
Public Interest - answer✔Michael is the payroll accountant for a non-profit. In his personal life,
he is also a single father of three young children. On the day that payroll is supposed to be
issued, his children are sick and he is unavailable to be at work. The employee's paychecks
cannot be issued without his presence. Which ethical principle most closely governs this
situation?
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