Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

List two types of authorization required in the Fixed Asset System.

Accepted Answer

authorization to purchase the asset and to dispose of the asset

Question 3

Cost accounting updates work-in-process accounts from

Accepted Answer

A)  time cards 
B)  the labor distribution summary 
C)  job tickets 
D)  personnel action forms 
A)  time cards 
B)  the labor distribution summary 
C)  job tickets 
D)  personnel action forms C

Question 4

Depreciation

Accepted Answer

A)  is calculated by the department that uses the fixed asset 
B)  allocates the cost of the asset over its useful life 
C)  is recorded weekly 
D)  results in book value approximating fair market value 
A)  is calculated by the department that uses the fixed asset 
B)  allocates the cost of the asset over its useful life 
C)  is recorded weekly 
D)  results in book value approximating fair market value

Question 5

When fixed assets are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A form of payroll fraud involv

Question 7

How are the following carried out in the Fixed Asset System: authorization,supervision,independent verification?

Accepted Answer

Independent authorization is required to

Question 8

The depreciation schedule shows when assets are fully depreciated.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  cash disbursements 
B)  cost accounting 
C)  personnel 
D)  general ledger 
A)  cash disbursements 
B)  cost accounting 
C)  personnel 
D)  general ledger

Question 10

Why should the employee's supervisor not distribute paychecks?

Accepted Answer

A form of payroll fraud involv

Question 11

Asset maintenance involves

Accepted Answer

A)  the recording of periodic depreciation 
B)  adjusting the asset records to reflect the cost of physical improvements 
C)  keeping track of the physical location of the assets 
D)  all of the above 
A)  the recording of periodic depreciation 
B)  adjusting the asset records to reflect the cost of physical improvements 
C)  keeping track of the physical location of the assets 
D)  all of the above

Question 12

An important reconciliation in the payroll system is

Accepted Answer

A)  general ledger compares the labor distribution summary from cost accounting to the disbursement voucher from accounts payable 
B)  personnel compares the number of employees authorized to receive a paycheck to the number of paychecks prepared 
C)  production compares the number of hours reported on job tickets to the number of hours reported on time cards 
D)  payroll compares the labor distribution summary to the hours reported on time cards 
A)  general ledger compares the labor distribution summary from cost accounting to the disbursement voucher from accounts payable 
B)  personnel compares the number of employees authorized to receive a paycheck to the number of paychecks prepared 
C)  production compares the number of hours reported on job tickets to the number of hours reported on time cards 
D)  payroll compares the labor distribution summary to the hours reported on time cards

Question 13

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  time card 
B)  job ticket 
C)  labor distribution summary 
D)  personnel action form 
A)  time card 
B)  job ticket 
C)  labor distribution summary 
D)  personnel action form

Question 15

The Fixed Asset System is similar to the expenditure cycle except

Accepted Answer

A)  fixed asset transactions are non-routine and require special authorization and controls 
B)  fixed assets are capitalized,not expensed 
C)  both a and b 
D)  none of the above 
A)  fixed asset transactions are non-routine and require special authorization and controls 
B)  fixed assets are capitalized,not expensed 
C)  both a and b 
D)  none of the above

Question 16

Asset maintenance involves only the recording of depreciation charges.Physical improvements are always expensed.

Accepted Answer

A) True 
 B)False

Question 17

To improve internal control,paychecks should be distributed by the employee's supervisor.

Accepted Answer

A) True 
 B)False

Question 18

List four types of data that appear on a depreciation schedule.

Accepted Answer

item description,depreciation

Question 19

Which of the following is NOT an input control to reduce the risks of data entry errors and payroll fraud for a company with a mobile or distributed work force?

Accepted Answer

A)  Limit tests that detect excessive hours 
B)  Check digits that detect transcription errors in employee identification 
C)  Biometric scanners,swipe cards,and PINS 
D)  Multilevel security that achieves segregation of duties 
A)  Limit tests that detect excessive hours 
B)  Check digits that detect transcription errors in employee identification 
C)  Biometric scanners,swipe cards,and PINS 
D)  Multilevel security that achieves segregation of duties

Question 20

Depreciation

Accepted Answer

A)  assures that assets are reported at fair market value 
B)  is discretionary for many firms 
C)  allocates the cost of an asset over its useful life 
D)  is the responsibility of the department using the asset 
A)  assures that assets are reported at fair market value 
B)  is discretionary for many firms 
C)  allocates the cost of an asset over its useful life 
D)  is the responsibility of the department using the asset

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

List two types of authorization required in the Fixed Asset System.

Cost accounting updates work-in-process accounts from

Depreciation

When fixed assets are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

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

How are the following carried out in the Fixed Asset System: authorization,supervision,independent verification?

The depreciation schedule shows when assets are fully depreciated.

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

Why should the employee's supervisor not distribute paychecks?

Asset maintenance involves

An important reconciliation in the payroll system is

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

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

The Fixed Asset System is similar to the expenditure cycle except

Asset maintenance involves only the recording of depreciation charges.Physical improvements are always expensed.

To improve internal control,paychecks should be distributed by the employee's supervisor.

List four types of data that appear on a depreciation schedule.

Which of the following is NOT an input control to reduce the risks of data entry errors and payroll fraud for a company with a mobile or distributed work force?

Depreciation

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters

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

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

List two types of authorization required in the Fixed Asset System.

Cost accounting updates work-in-process accounts from

Depreciation

When fixed assets are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

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

How are the following carried out in the Fixed Asset System: authorization,supervision,independent verification?

The depreciation schedule shows when assets are fully depreciated.

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

Why should the employee's supervisor not distribute paychecks?

Asset maintenance involves

An important reconciliation in the payroll system is

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

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

The Fixed Asset System is similar to the expenditure cycle except

Asset maintenance involves only the recording of depreciation charges.Physical improvements are always expensed.

To improve internal control,paychecks should be distributed by the employee's supervisor.

List four types of data that appear on a depreciation schedule.

Which of the following is NOT an input control to reduce the risks of data entry errors and payroll fraud for a company with a mobile or distributed work force?

Depreciation

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Conversion Cycle

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters