Question 1

This record, prepared by the cash disbursements department, provides a listing of all paychecks written, in check-number sequence, with the total supporting the amount of payroll funds to transfer to the payroll bank account.

Accepted Answer

The description given matches the characteristics of a Payroll Disbursements Journal, which records all paychecks written in check-number sequence and the total amount of payroll funds to transfer to the payroll bank account. The Cash Disbursements Journal records all cash disbursements made by the company, including payroll, but may not necessarily list the paychecks in check-number sequence or have a total supporting the amount of payroll funds to transfer. The Payroll Register and Payroll Journal are both used to track employee compensation and deductions but do not provide a listing of paychecks in check-number sequence or the total amount of payroll funds to transfer.

Question 2

Which of the following is a characteristic of a nonroutine transaction?

Accepted Answer

A nonroutine transaction is a one-time or infrequent transaction that requires specific authorization because it is not part of the organization's regular operations. Therefore, option B is the correct characteristic of a nonroutine transaction. Options A, C, and D describe routine transactions.

Question 3

This document authorizes the transfer of cash from the company's main operating account into the payroll cash account.

Accepted Answer

The document described is a payroll voucher which authorizes the transfer of cash from the company's main operating account into the payroll cash account. The other options listed (payroll register, payroll disbursements journal, and paycheck) do not pertain to the authorization or transfer of cash between company accounts.

Question 4

This item would include explanations concerning the qualifications and responsibilities of each position shown on organization chart.The item is also supported by policies and procedures manuals that outline specific activities performed by each position.

Accepted Answer

The answer of This item would include explanations concerning the...

Question 5

Personnel records will typically include all of the following, except:

Accepted Answer

It is not legal for employers to keep medical history subsequent to hiring on personnel records. This information should be kept separate and confidential, only accessible by authorized individuals such as HR and occupational health professionals. This is to protect the employee's privacy and prevent discrimination based on health conditions.

Question 6

The policies and procedures involved in purchasing property, capturing and maintaining relevant data about the assets, paying for and recording the related assets, depreciation and other expenses, and gains or losses are collectively referred to as:

Accepted Answer

The policies and procedures involved in acquiring, tracking, and accounting for fixed assets are referred to as fixed asset processes. This includes all aspects of the asset lifecycle, from initial purchase through disposal, including data capture and maintenance, payment and record-keeping, depreciation and expenses, and gains or losses. While capital resources and procedures may be part of the overall financial management of a company, they are not specific to fixed assets. Property administration may refer to the management of real estate or other property, but is not necessarily related to fixed asset processes.

Question 7

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

Production employees often need to prepare detailed time reports to accurately track the time spent on different projects or tasks, which is crucial for cost accounting and efficiency analysis.

Question 8

Each of the following items would likely be found in an employee's personnel records related to the initial hiring, except:

Accepted Answer

Overtime and commission rates typically are not included in an employee's personnel records related to the initial hiring. This information would be provided after the employee has worked and earned overtime or commissions. The other three choices would be found in an employee's personnel records related to the initial hiring.

Question 9

The payroll process is initiated when:

Accepted Answer

The answer of The payroll process is initiated when:
...

Question 10

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

The department responsible for maintaining records for each job and employee within the organization and tracking job vacancies is the Human Resources Department.

Question 11

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

While valid expenditures recorded properly by the wrong employee may pose issues with internal controls and monitoring, it is not directly related to payroll or fixed asset transactions. The other options all pose risks to the accuracy and reliability of these types of transactions.

Question 12

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

Accepted Answer

The correct sequence for the payroll process is: Time sheet submitted by employee, time sheet approved (to verify hours worked), paycheck signed by management (after approval, to authorize payment), and then update General Ledger (to reflect the payroll expense). This ensures accurate and authorized payment to employees and proper accounting records.

Question 13

When accounting software is used to prepare the periodic payroll, which of the following items is necessary to input for each employee?

Accepted Answer

The answer of When accounting software is used to prepare...

Question 14

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

Accepted Answer

Gross pay is calculated by multiplying the hours worked by the authorized pay rate. This does not take into account any deductions or taxes.

Question 15

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 register is a document that contains a complete listing of salary or wage detail for all employees for a given time. This information is used by the payroll department to calculate and distribute employee paychecks. A payroll journal is a record of all payroll transactions, while a general ledger is a record of all financial transactions for a company. An employee record contains individual employee information such as contact details, employment history, and benefits.

Question 16

The document is prepared in order to map out the jobs and reporting relationships within an organization.This may include only top branches of an organization or may include all positions within the company.

Accepted Answer

An organization chart is a visual representation of an organization's structure and hierarchy, displaying how each job position and department relate to each other. It shows reporting relationships, job titles, and where each position fits within the organization's overall structure. It is commonly used to help employees understand their role within the company and how they fit into the bigger picture. An employee list or human resources listing would not provide the visual representation needed to show the structure and relationships within the organization. A hierarchy tree is a similar concept, but not as commonly used and may be too complex for some organizations.

Question 17

The policies and procedures that employees following in acquiring and maintaining human resources, capturing and maintaining employee data, paying employees for time worked, and recorded the related cash payroll liabilities and expenses are collectively referred to as:

Accepted Answer

The policies and procedures described pertain to the processes involved in payroll, including the acquisition and maintenance of human resources, capturing and maintaining employee data, paying employees for time worked, and recording payroll liabilities and expenses.

Question 18

It is necessary for employees to maintain adequate records of the hours worked and the projects worked on.The record of hours worked by an employee for a specific payroll period is reported on a document called:

Accepted Answer

A time sheet is the document used to record the hours worked by an employee for a specific payroll period. A time ticket may also be used to track hours worked, but typically only for specific tasks or projects, whereas a time sheet covers all hours worked by an employee during a given period. Salary document and wage report are not accurate descriptions of the document used to record hours worked.

Question 19

A company must have systems in place to take care of all activities related to both routine and nonroutine processes.The activities would include all of the following, except:

Accepted Answer

Review is not typically considered a core activity in managing routine and nonroutine processes, which usually focus on recording, summarizing, and reporting data.

Question 20

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

Accepted Answer

Net pay is calculated by subtracting all authorized deductions, including withholding taxes, from the gross pay.

Quiz 10: Expenditures Processes and Controlspayroll and Fixed Assets