Exam 6: The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

Where does the responsibility lie for reconciling the labor distribution summary and the payroll disbursement voucher?

The personnel department authorizes changes in employee pay rates.

Objectives of the fixed asset system do not include

Timekeeping is part of the personnel function.

Personnel action forms are used to do all of the following except

The document that records the total amount of time spent on a production job is the

The fixed asset systems does all of the following except

Describe an internal control that would prevent the charging of depreciation expense to the maintenance department for a sweeper that is now located in and used by the engineering department.

How are the following carried out in the fixed asset system: authorization,supervision,independent verification?

Why should employees clocking on and off the job be supervised?

Authorization to dispose of fixed assets should be issued by the user of the asset.

Describe several technologies developed for producing the time and attendance file in a modern business with telecommuting employees working from multiple locations.

Which of the following is not a characteristic of the fixed asset system?

All of the following are processed by the fixed asset system except

Most small organizations integrate payroll processing with the human resource management (HRM)system.

Describe an internal control that would prevent the payment of insurance premiums on an automobile that is no longer owned by the company.

Work centers provide the personnel action form,which triggers the payroll process.

Time cards are used by cost accounting to allocate direct labor charges to work in process.

Which of the following is popular among businesses with employees in the field who travel between clients and companies with foreign-based employees?

Fixed asset systems must keep track of the physical location of each asset to promote accountability.