Question 1

Joel is the payroll accountant for a company. He has been notiﬁed of an impending audit of all accounting records. What is Joel's role in the audit?
A) He must agree to serve on the audit staff for other companies.
B) He must be available to answer questions and grant access to payroll records.
C) He must prevent privacy breaches by disallowing access to payroll records.
D) He is required to be absent during the audit to avoid inﬂuencing the results.

Accepted Answer

Joel's role in the audit as the payroll accountant is to be available to answer any questions that the auditors have and to grant them access to the company's payroll records. He plays a supporting role in ensuring that the audit is conducted smoothly and that the auditors have all the necessary information they require to complete their work. Choosing options A, C, or D would not be appropriate given Joel's role in the audit as the payroll accountant.

Question 2

What is the most signiﬁcant challenge pertaining to payroll that small businesses face?
A) Availability of payroll-trained personnel.
B) Availability of accounting resources.
C) Accessibility of on-site payroll guidance.
D) Accessibility of free on-site payroll software.

Accepted Answer

Availability of payroll-trained personnel is the most significant challenge that small businesses face when it comes to payroll. Small businesses may not have the resources to hire and train personnel with expertise in payroll, which may result in errors and compliance issues.

Question 3

An example of an accounting software package that fosters electronic payroll processing is:
A) SageBooks.
B) QuickBooks.
C) Quick100.
D) GreatBooks.

Accepted Answer

QuickBooks is a widely used accounting software that offers electronic payroll processing features, allowing businesses to easily calculate and process employee paychecks, taxes, and other related tasks electronically. SageBooks, Quick100, and GreatBooks are not known to offer this feature.

Question 4

Worker's compensation is an insurance policy used for
A) Wage continuation after job-related injuries.
B) Payment of mandatory payroll taxes.
C) Settlement of payroll-related lawsuits.
D) Remittance of wages mandated by the FLSA.

Accepted Answer

Worker's compensation is an insurance policy that provides wage continuation and medical benefits to employees who are injured or become ill as a result of their job duties.

Question 5

Positive aspects of the use of Internet-based accounting software includes which of the following?
A) Suitability for highly complex large businesses.
B) Continual updates for tax rate and other changes.
C) Unlimited options for company personnel.
D) Fixed software layout for consistency among companies.

Accepted Answer

Continual updates for tax rate and other changes are a positive aspect of the use of internet-based accounting software, as it ensures that businesses are always up to date with their financial obligations.

Question 6

The largest challenge to companies that use manual payroll processing is:
A) Filing appropriate governmental reports.
B) Maintaining accurate personnel records.
C) Obtaining accurate employee data.
D) Integrating current tax tables.

Accepted Answer

Integrating current tax tables is a significant challenge in manual payroll processing because tax rates and regulations frequently change, requiring constant updates to ensure compliance and accuracy.

Question 7

Which court case updated the deﬁnition of spouse to include same-sex unions?
A) Obergefell v. Hodges.
B) CIGNA v. Amara.
C) Young v. Wackenhut.
D) Pollard v. DuPont.

Accepted Answer

Obergefell v. Hodges was the court case that updated the definition of spouse to include same-sex unions, legalizing same-sex marriage throughout the United States.

Question 8

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?
A) Employee website navigation issues.
B) Security of personnel data.
C) Employer oversight of stored data.
D) Accuracy of employee-entered data.

Accepted Answer

The most significant concern about employee portals with payroll data is the security of personnel data. Since payroll data contains sensitive information like Social Security numbers, bank account information, and salaries, there is a high risk of data breaches and identity theft. It is crucial for companies to have robust security measures in place to protect their employees' information.

Question 9

According to the Public Company Accounting Oversight Board, personal or family ownership in excess of ﬁve percent of a client's business may compromise an accountant's
A) Objectivity and Independence.
B) Professional Competence and Due Care.
C) Professionalism.
D) Integrity.

Accepted Answer

The Personal or family ownership in excess of five percent of a client's business may compromise an accountant's objectivity and independence as it creates a conflict of interest between the accountant's own financial interest and their obligation to provide unbiased and independent auditing services.

Question 10

Why do different methods of time collection devices (e.g., time cards, biometric devices) exist among companies?
A) They replace personnel with computers, which prevents ethical issues.
B) They promote compensation accuracy that matches company needs.
C) They alleviate the need for internal control.
D) They maintain precise tracking of employee whereabouts.

Accepted Answer

Different methods of time collection devices exist among companies to promote compensation accuracy that matches company needs. Different companies may have different payroll processing systems and may require different levels of accuracy and precision for employee time tracking. Some companies may also have different preferences or regulations regarding the type of time collection device they use, such as biometric devices for security purposes.

Question 11

_________ is the state counterpart of the Federal Unemployment Tax Act.
A) State Income Tax Act
B) Fair Labor Standards Act
C) Worker's compensation insurance
D) State Unemployment Tax Act

Accepted Answer

The State Unemployment Tax Act (SUTA) is the state-level equivalent of the Federal Unemployment Tax Act (FUTA), which requires employers to pay into an unemployment insurance fund to provide benefits to employees who are laid off or terminated without cause. SUTA operates similarly, but is managed by individual states rather than the federal government.

Question 12

Which of the following is true about independent contractors within the context of payroll?
A) A temporary working relationship must exist.
B) They are employees of the company.
C) The worker controls hours worked and exercises judgment.
D) Tools and facilities are provided by the employer.

Accepted Answer

Independent contractors are not employees of the company and are hired on a project or contract basis. They have control over their work schedule and how they complete their tasks.

Question 13

Which of the following is(are) payroll-related issues that large companies may experience? (You may select more than one answer. Single click the box with the question mark to produce a
Check mark for a correct answer and double click the box with the question mark to empty
The box for a wrong answer. Any boxes left with a question mark will be automatically
Graded as incorrect.)
A) Multiple departments.
B) Geographic dispersion.
C) Increased task variation.
D) Homogeneous workforce.

Accepted Answer

The answer of Which of the following is(are) payroll-related issues...

Question 14

Which of the following is not a privacy act related to payroll records?
A) U.S. Department of Health and Human Services Privacy Act 09-40-0006.
B) U.S. Department of Labor OCFO-1.
C) Freedom of Information Act.
D) Community Property Act of 1990.

Accepted Answer

The Community Property Act of 1990 is not related to payroll records or privacy. The other three options are all relevant privacy acts related to payroll records.

Question 15

Why is outsourced payroll popular among accounting professionals?
A) Records generated by outsourced vendors are not subject to retention rules.
B) Payroll processing is always simpler and quicker.
C) Time required for payroll processing is reduced.
D) Data generated by the outsource company is completely accurate.

Accepted Answer

Outsourcing payroll processing reduces the time required for accounting professionals to complete payroll tasks, allowing them to focus on other aspects of their work. It also eliminates the need for in-house payroll staff and helps ensure that payroll compliance requirements are met. However, the accuracy of data generated by the outsource company is not guaranteed, and records generated by outsourced vendors are still subject to retention rules.

Question 16

Which privacy act safeguards information contained in private personnel records and mandates information safekeeping?
A) Computer Fraud and Abuse Act of 1986.
B) Privacy Act of 1974.
C) DHHS Privacy Act 09-04-0006.
D) Common Law Privacy Act.

Accepted Answer

The Privacy Act of 1974 safeguards information contained in private personnel records and mandates information safekeeping. The Computer Fraud and Abuse Act of 1986 addresses computer-related offenses, DHHS Privacy Act 09-04-0006 specifically applies to the Department of Health and Human Services, and there is no such thing as the Common Law Privacy Act.

Question 17

If a company chooses to use computer-based accounting, which of the following is required?
A) A standalone system that is dedicated to payroll processing.
B) Certiﬁcation by a CPA prior to use for payroll processing.
C) Regularly scheduled software updates.
D) Certiﬁcation and bonding of payroll personnel.

Accepted Answer

Regularly scheduled software updates are required when a company chooses to use computer-based accounting. While having a standalone system for payroll processing (A) may be helpful, it is not a requirement. Certification by a CPA (B) and certification and bonding of payroll personnel (D) are also not required for computer-based accounting.

Question 18

Paycards represent a trend in employee compensation that alleviates the employee's need for:
A) Filing data about time worked.
B) Workplace competence.
C) Functional literacy.
D) Bank account establishment.

Accepted Answer

Paycards are prepaid debit cards that are loaded with an employee's salary, eliminating the need for a traditional bank account.

Question 19

Jonah is one of the payroll accountants in a company that specializes in custom work for each customer. His biggest payroll challenge is accurate allocation of labor to jobs. Which of the following
Represents the most accurate option to track the company's labor costs?
A) Handwritten time slips on which the employee documents the times worked on each job.
B) Verbal reporting via telephone of time worked per job.
C) Computer log-ins when employees change tasks.
D) Radio-frequency time cards to track time allocations.

Accepted Answer

Radio-frequency time cards provide the most accurate tracking of labor hours, as they automatically allocate time to specific jobs without relying on employee documentation or memory. This eliminates the risk of errors and ensures that labor costs are accurately allocated to each job.

Question 20

Which law requires a company to use certiﬁed payroll?
A) Copeland Anti-Kickback Act
B) Walsh-Healey Public Contracts Act
C) Davis-Bacon Act
D) Sarbanes-Oxley Act

Accepted Answer

The Davis-Bacon Act requires contractors and subcontractors working on federally funded construction projects to pay their employees prevailing wages and fringe benefits as determined by the Department of Labor. It also requires these contractors to submit weekly certified payroll reports to ensure compliance with the prevailing wage requirements.

Quiz 1: Payroll Practices and System Fundamentals

Joel is the payroll accountant for a company. He has been notiﬁed of an impending audit of all accounting records. What is Joel's role in the audit?

What is the most signiﬁcant challenge pertaining to payroll that small businesses face?

An example of an accounting software package that fosters electronic payroll processing is:

Worker's compensation is an insurance policy used for

Positive aspects of the use of Internet-based accounting software includes which of the following?

The largest challenge to companies that use manual payroll processing is:

Which court case updated the deﬁnition of spouse to include same-sex unions?

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?

According to the Public Company Accounting Oversight Board, personal or family ownership in excess of ﬁve percent of a client's business may compromise an accountant's

Why do different methods of time collection devices (e.g., time cards, biometric devices) exist among companies?

_________ is the state counterpart of the Federal Unemployment Tax Act.

Which of the following is true about independent contractors within the context of payroll?

Which of the following is not a privacy act related to payroll records?

Why is outsourced payroll popular among accounting professionals?

Which privacy act safeguards information contained in private personnel records and mandates information safekeeping?

If a company chooses to use computer-based accounting, which of the following is required?

Paycards represent a trend in employee compensation that alleviates the employee's need for:

Jonah is one of the payroll accountants in a company that specializes in custom work for each customer. His biggest payroll challenge is accurate allocation of labor to jobs. Which of the following Represents the most accurate option to track the company's labor costs?

Which law requires a company to use certiﬁed payroll?