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

Accounting records that provide the audit trail for payroll include all of the following except

Describe an internal control procedure that would prevent an employee from punching the time clock for another,absent employee.

Accounts payable

How do fixed asset systems differ from the expenditure cycle?

Because a time clock is used,no supervision is required when employees enter and leave the work place.

Cost accounting updates work-in-process accounts from

Why should the employee's supervisor not distribute paychecks?

Asset disposal

The depreciation schedule shows when assets are fully depreciated.

Fixed asset accounting systems include cost allocation and matching procedures that are not part of routine expenditure systems.

Why should employee paychecks be drawn against a special checking account?

Which of the following situations represents an internal control weakness?

Payroll checks are typically drawn on

List two types of authorization required in the fixed asset system.

The fixed asset system is similar to the expenditure cycle except

In a manufacturing firm,employees use time cards and job tickets.Which of the following statements is not correct?

Which of the following works through wallets,purses and card holders?

What negative consequences can result from miscalculated depreciation?

The payroll department performs all of the following except

Ideally,payroll checks are written on a special bank account used only for payroll.