Question 1

Professional employer organizations (PEOs)are especially attractive to small and mid-sized businesses for all of the following reasons except

Accepted Answer

A) reduced costs. 
B) wider range of benefits. 
C) freeing up computer resources. 
D) improved service quality. 
A) reduced costs. 
B) wider range of benefits. 
C) freeing up computer resources. 
D) improved service quality.

Question 2

As each payroll transaction is processed,the system should also

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. 
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 3

What is the best control to reduce the risk of losing payroll data?

Accepted Answer

A) Passwords. 
B) Physical security controls. 
C) Backup and disaster recovery procedures. 
D) Supervisory review. 
A) Passwords. 
B) Physical security controls. 
C) Backup and disaster recovery procedures. 
D) Supervisory review.

Question 4

Which of the following documents would be likely to yield the greatest cost saving by converting from paper to electronic?

Accepted Answer

A) Payroll register. 
B) Employee's earnings statement. 
C) Deduction register. 
D) Time card. 
A) Payroll register. 
B) Employee's earnings statement. 
C) Deduction register. 
D) Time card.

Question 5

Identify the firm below where employees' knowledge is likely to be more valuable than the value of a company's tangible assets.

Accepted Answer

A) An international airline company. 
B) A law firm. 
C) An automobile manufacturer. 
D) A grocery store. 
A) An international airline company. 
B) A law firm. 
C) An automobile manufacturer. 
D) A grocery store.

Question 6

A growing number of companies require some of their upper level executives to spend time performing job duties of rank-and-file employees.When the CEO of Loews Hotels assumed the role of bellman,he discovered

Accepted Answer

A) that the company's polyester uniform caused him to sweat a great deal. 
B) evidence of fraud in several hotel locations. 
C) instances where company employees fell asleep on the job. 
D) situations where employees were not treating customers properly. 
A) that the company's polyester uniform caused him to sweat a great deal. 
B) evidence of fraud in several hotel locations. 
C) instances where company employees fell asleep on the job. 
D) situations where employees were not treating customers properly.

Question 7

Which of the following is not a benefit of using a payroll service bureau or a professional employer organization?

Accepted Answer

A) freeing up of computer resources 
B) increased internal control 
C) reduced costs 
D) wider range of benefits 
A) freeing up of computer resources 
B) increased internal control 
C) reduced costs 
D) wider range of benefits

Question 8

Which of the following control can reduce the distribution of fraudulent paychecks?

Accepted Answer

A) Have internal audit investigate unclaimed paychecks. 
B) Allow department managers to investigate unclaimed paychecks. 
C) Immediately mark "void" across all unclaimed paychecks. 
D) Match up all paychecks with time cards. 
A) Have internal audit investigate unclaimed paychecks. 
B) Allow department managers to investigate unclaimed paychecks. 
C) Immediately mark "void" across all unclaimed paychecks. 
D) Match up all paychecks with time cards.

Question 9

The results of an internal audit finds that there is a problem with inaccurate time data being entered into the payroll system.What is an applicable control that can help prevent this event from occurring in the future?

Accepted Answer

A) Proper segregation of duties. 
B) Automation of data collection. 
C) Sound hiring procedures. 
D) Review of appropriate performance metrics. 
A) Proper segregation of duties. 
B) Automation of data collection. 
C) Sound hiring procedures. 
D) Review of appropriate performance metrics.

Question 10

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

Accepted Answer

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

Question 11

Which activity below is not performed by Human Resources management (HRM)?

Accepted Answer

A) Product design. 
B) Training. 
C) Job assignment. 
D) Recruitment and hiring. 
A) Product design. 
B) Training. 
C) Job assignment. 
D) Recruitment and hiring.

Question 12

Describe the basic activities in an HRM/payroll cycle.

Accepted Answer

The HRM/payroll cycle is a recurring set

Question 13

Which type of payroll report contains information such as the employees' gross pay,payroll deductions,and net pay in a multicolumn format?

Accepted Answer

A) Payroll register. 
B) Deduction register. 
C) Employee earnings statement. 
D) Federal W-4 form. 
A) Payroll register. 
B) Deduction register. 
C) Employee earnings statement. 
D) Federal W-4 form.

Question 14

Many companies offer their employees a "cafeteria" approach to voluntary benefits in which employees can pick and choose the benefits they want.This plan is normally called a(n)

Accepted Answer

A) elective plan. 
B) menu options benefit plan. 
C) flexible benefit plan. 
D) buffet plan. 
A) elective plan. 
B) menu options benefit plan. 
C) flexible benefit plan. 
D) buffet plan.

Question 15

Accountants can help executive compensation plan boards

Accepted Answer

A) comply with legal and regulatory requirements. 
B) by identifying the best ways to keep the details of compensation plans out of the hands of external parties. 
C) avoid paying excessive amounts of "perks" to executives. 
D) distribute information regarding how well each executive is performing their job. 
A) comply with legal and regulatory requirements. 
B) by identifying the best ways to keep the details of compensation plans out of the hands of external parties. 
C) avoid paying excessive amounts of "perks" to executives. 
D) distribute information regarding how well each executive is performing their job.

Question 16

Pay rate information should be stored in

Accepted Answer

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

Question 17

A workforce inventory report

Accepted Answer

A) is filed each quarter to reconcile monthly tax payments with total tax liability for the quarter. 
B) is used in preparing labor-related reports for government agencies. 
C) is used for employee information and annual payroll reports. 
D) is used to document compliance with applicable regulations. 
A) is filed each quarter to reconcile monthly tax payments with total tax liability for the quarter. 
B) is used in preparing labor-related reports for government agencies. 
C) is used for employee information and annual payroll reports. 
D) is used to document compliance with applicable regulations.

Question 18

Involving accountants in executive compensation plans is often especially helpful

Accepted Answer

A) in keeping track of the executive compensation plan. 
B) in identifying the appropriate metrics to use when linking compensation to performance. 
C) in reducing the total amount of compensation paid to executives. 
D) in suggesting the appropriate amount of compensation executives should be paid. 
A) in keeping track of the executive compensation plan. 
B) in identifying the appropriate metrics to use when linking compensation to performance. 
C) in reducing the total amount of compensation paid to executives. 
D) in suggesting the appropriate amount of compensation executives should be paid.

Question 19

A report of wages and withholdings for each employee is called

Accepted Answer

A) form W-2. 
B) form W-3. 
C) form 1099-Misc. 
D) form 941. 
A) form W-2. 
B) form W-3. 
C) form 1099-Misc. 
D) form 941.

Question 20

Which of the following is not classified as a voluntary deduction?

Accepted Answer

A) Pension plan contributions. 
B) FICA. 
C) Health insurance premiums . 
D) Deductions for a charity organization 
A) Pension plan contributions. 
B) FICA. 
C) Health insurance premiums . 
D) Deductions for a charity organization

Exam 15: The Human Resources Management and Payroll Cycle

Professional employer organizations (PEOs)are especially attractive to small and mid-sized businesses for all of the following reasons except

As each payroll transaction is processed,the system should also

What is the best control to reduce the risk of losing payroll data?

Which of the following documents would be likely to yield the greatest cost saving by converting from paper to electronic?

Identify the firm below where employees' knowledge is likely to be more valuable than the value of a company's tangible assets.

A growing number of companies require some of their upper level executives to spend time performing job duties of rank-and-file employees.When the CEO of Loews Hotels assumed the role of bellman,he discovered

Which of the following is not a benefit of using a payroll service bureau or a professional employer organization?

Which of the following control can reduce the distribution of fraudulent paychecks?

The results of an internal audit finds that there is a problem with inaccurate time data being entered into the payroll system.What is an applicable control that can help prevent this event from occurring in the future?

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

Which activity below is not performed by Human Resources management (HRM)?

Describe the basic activities in an HRM/payroll cycle.

Which type of payroll report contains information such as the employees' gross pay,payroll deductions,and net pay in a multicolumn format?

Many companies offer their employees a "cafeteria" approach to voluntary benefits in which employees can pick and choose the benefits they want.This plan is normally called a(n)

Accountants can help executive compensation plan boards

Pay rate information should be stored in

A workforce inventory report

Involving accountants in executive compensation plans is often especially helpful

A report of wages and withholdings for each employee is called

Which of the following is not classified as a voluntary deduction?

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

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