Question 1

Which of the following is(are)  payroll-related issues that large companies may experience? (Select all that apply.)

Accepted Answer

A)   Geographic dispersion.
B)   Multiple departments.
C)   Homogeneous workforce.
D)   Increased task variation.

Question 2

Which of the following is among the guidelines for the AICPA Code of Ethics?

Accepted Answer

A)   Company Interest
B)   Corporate Profitability
C)   Due Care
D)   Interdependence

Question 3

What is the effect of payroll-related legislation on payroll practice?

Accepted Answer

A)   Legislation explicitly dictates specific activities of payroll accountants.
B)   Legislation has prescribed the format and delivery of a payroll system.
C)   Legislation has alleviated the need for a company to design its own payroll system.
D)   Legislation highlights the need for firms to create well-designed payroll systems.

Question 4

The U.S. v. Windsor case repealed an Act and affected payroll tax withholdings for certain employees. Which Act did Windsor repeal?

Accepted Answer

A)   OSHA
B)   ARRA
C)   ATRA
D)   DOMA

Question 5

Which form does the Internal Revenue Service use to keep track of employers?

Accepted Answer

A)   SS-4
B)   ES-4
C)   EIN
D)   W-4

Question 6

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?

Accepted Answer

A)   He is required to be absent during the audit to avoid influencing the results.
B)   He must agree to serve on the audit staff for other companies.
C)   He must be available to answer questions and grant access to payroll records.
D)   He must prevent privacy breaches by disallowing access to payroll records.

Question 7

Worker's compensation insurance premiums:

Accepted Answer

A)   Are the same amount for all employees of a company, regardless of employee task.
B)   Are remitted in full at the end of the year to ensure accuracy.
C)   Are mandated by the Fair Labor Standards Act.
D)   Are governed by state laws and vary according to worker job classification. D

Question 8

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

Accepted Answer

A)   Pollard v. DuPont.
B)   Obergefell v. Hodges.
C)   CIGNA v. Amara.
D)   Young v. Wackenhut. B

Question 9

Which of the following is a payroll accountant's responsibility?

Accepted Answer

A)   Wage negotiations with prospective employees.
B)   Construction contract negotiations with governmental entities.
C)   Preparation for corporate safety audits.
D)   Preparation of payroll tax returns.

Question 10

Prevailing local wages and wage classification strategies for government contractors were mandated by the ________.

Accepted Answer

A)   Davis-Bacon Act
B)   Walsh-Healey Public Contracts Act
C)   Fair Labor Standards Act
D)   Equal Pay Act

Question 11

An accountant must remain current in his or her knowledge of current payroll practices, according to the ethical principle of ________.

Accepted Answer

A)   Responsibilities
B)   Public Interest
C)   Due Care
D)   Integrity

Question 12

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

Accepted Answer

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.

Question 13

The Worker's Compensation Act of 1935 legislated the payment of worker's compensation insurance.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not an option available to payroll accountants?

Accepted Answer

A)   Payroll preparation through manual, handwritten spreadsheets.
B)   Reduced responsibility for accuracy because of outsourcing services.
C)   Increased use of paycards as a vehicle for paying employees.
D)   Governmentally mandated and monitored payroll outsourcing.

Question 15

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 employees' paychecks cannot be issued without his presence. Which ethical principle most closely governs this situation?

Accepted Answer

A)   Responsibilities
B)   Objectivity and Independence
C)   Integrity
D)   Public Interest

Question 16

Which Act extended medical benefits for certain terminated employees?

Accepted Answer

A)   ADEA
B)   COBRA
C)   OSHA
D)   ERISA

Question 17

The Lilly Ledbetter Act of 2009 was the first act that mandated equal pay for men and women who perform identical tasks.

Accepted Answer

A) True 
 B)False  False

Question 18

According to FMLA, during the time that an employee is on family leave:

Accepted Answer

A)   The employer must not contact the employee during the leave.
B)   The employee is responsible for staying in touch with the employer.
C)   The employer may make changes to the employee's benefits.
D)   The employer is responsible for alerting the employee to changes in processes and benefits.

Question 19

The use of outsourced payroll relieves employers of the responsibility for payroll accuracy.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following represents a payroll system privacy breach by Susan, a payroll accountant?

Accepted Answer

A)   Susan shares information about labor costs with company executives.
B)   Susan alerts department managers about potential FLSA violations in their departments.
C)   Susan discusses specific information about the company's federal contracts with friends during lunch.
D)   Susan places employee payroll files in a cabinet to which only she and her supervisor have access.

Exam 1: Payroll Practices and System Fundamentals

Which of the following is(are) payroll-related issues that large companies may experience? (Select all that apply.)

Correct Answer
verified

Which of the following is among the guidelines for the AICPA Code of Ethics?

Correct Answer
verified

What is the effect of payroll-related legislation on payroll practice?

Correct Answer
verified

The U.S. v. Windsor case repealed an Act and affected payroll tax withholdings for certain employees. Which Act did Windsor repeal?

Correct Answer
verified

Which form does the Internal Revenue Service use to keep track of employers?

Correct Answer
verified

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?

Correct Answer
verified

Worker's compensation insurance premiums:

Correct Answer
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D

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

Correct Answer
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B

Which of the following is a payroll accountant's responsibility?

Correct Answer
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Prevailing local wages and wage classification strategies for government contractors were mandated by the ________.

Correct Answer
verified

An accountant must remain current in his or her knowledge of current payroll practices, according to the ethical principle of ________.

Correct Answer
verified

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

Correct Answer
verified

The Worker's Compensation Act of 1935 legislated the payment of worker's compensation insurance.

Correct Answer
verified

Which of the following is not an option available to payroll accountants?

Correct Answer
verified

Correct Answer
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Which Act extended medical benefits for certain terminated employees?

Correct Answer
verified

The Lilly Ledbetter Act of 2009 was the first act that mandated equal pay for men and women who perform identical tasks.

Correct Answer
verified
False

According to FMLA, during the time that an employee is on family leave:

Correct Answer
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The use of outsourced payroll relieves employers of the responsibility for payroll accuracy.

Correct Answer
verified

Which of the following represents a payroll system privacy breach by Susan, a payroll accountant?

Correct Answer
verified

Exam 1: Payroll Practices and System Fundamentals

Which of the following is(are) payroll-related issues that large companies may experience? (Select all that apply.)

Correct AnswerverifiedShow Answer

Which of the following is among the guidelines for the AICPA Code of Ethics?

Correct AnswerverifiedShow Answer

What is the effect of payroll-related legislation on payroll practice?

Correct AnswerverifiedShow Answer

The U.S. v. Windsor case repealed an Act and affected payroll tax withholdings for certain employees. Which Act did Windsor repeal?

Correct AnswerverifiedShow Answer

Which form does the Internal Revenue Service use to keep track of employers?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Worker's compensation insurance premiums:

Correct AnswerverifiedD

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

Correct AnswerverifiedB

Which of the following is a payroll accountant's responsibility?

Correct AnswerverifiedShow Answer

Prevailing local wages and wage classification strategies for government contractors were mandated by the ________.

Correct AnswerverifiedShow Answer

An accountant must remain current in his or her knowledge of current payroll practices, according to the ethical principle of ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Worker's Compensation Act of 1935 legislated the payment of worker's compensation insurance.

Correct AnswerverifiedShow Answer

Which of the following is not an option available to payroll accountants?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which Act extended medical benefits for certain terminated employees?

Correct AnswerverifiedShow Answer

The Lilly Ledbetter Act of 2009 was the first act that mandated equal pay for men and women who perform identical tasks.

Correct AnswerverifiedFalse

According to FMLA, during the time that an employee is on family leave:

Correct AnswerverifiedShow Answer

The use of outsourced payroll relieves employers of the responsibility for payroll accuracy.

Correct AnswerverifiedShow Answer

Which of the following represents a payroll system privacy breach by Susan, a payroll accountant?

Correct AnswerverifiedShow Answer

Correct Answer
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D

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B

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False

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