Question 1

Inventory control authorizes fixed asset purchases with a purchase requisition.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The payroll department is responsible for both updating the employee records and writing paychecks.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is not true?

Accepted Answer

A)  Routine payroll processing begins with the submission of time cards. 
B)  Payroll clerks must verify the hours reported on the time cards. 
C)  Payroll reconciles personnel action forms with time cards and prepares paychecks. 
D)  Cash disbursements signs paychecks and forwards them to the paymaster for distribution. 
A)  Routine payroll processing begins with the submission of time cards. 
B)  Payroll clerks must verify the hours reported on the time cards. 
C)  Payroll reconciles personnel action forms with time cards and prepares paychecks. 
D)  Cash disbursements signs paychecks and forwards them to the paymaster for distribution.

Question 5

The Fixed Asset System performs all of the following except

Accepted Answer

A)  determines the need for new assets 
B)  maintains depreciation records 
C)  records retirement and disposal of assets 
D)  tracks the physical location of fixed assets 
A)  determines the need for new assets 
B)  maintains depreciation records 
C)  records retirement and disposal of assets 
D)  tracks the physical location of fixed assets

Question 6

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

Accepted Answer

A)  time cards 
B)  job tickets 
C)  payroll register 
D)  accounts payable register 
A)  time cards 
B)  job tickets 
C)  payroll register 
D)  accounts payable register

Question 7

Depreciation records include all of the following information about fixed assets except

Accepted Answer

A)  the economic benefit of purchasing the asset 
B)  the cost of the asset 
C)  the depreciation method being used 
D)  the location of the asset 
A)  the economic benefit of purchasing the asset 
B)  the cost of the asset 
C)  the depreciation method being used 
D)  the location of the asset

Question 8

Which internal control is not an important part of the payroll system?

Accepted Answer

A)  Supervisors verify the accuracy of employee time cards. 
B)  Paychecks are distributed by an independent paymaster. 
C)  Accounts payable verifies the accuracy of the payroll register before transferring payroll funds to the general checking accounting. 
D)  General ledger reconciles the labor distribution summary and the payroll disbursement voucher. 
A)  Supervisors verify the accuracy of employee time cards. 
B)  Paychecks are distributed by an independent paymaster. 
C)  Accounts payable verifies the accuracy of the payroll register before transferring payroll funds to the general checking accounting. 
D)  General ledger reconciles the labor distribution summary and the payroll disbursement voucher.

Question 9

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

Accepted Answer

A)  Biometric time clocks 
B)  Magnetic swipe ID cards 
C)  Mobile remote devices 
D)  Proximity cards 
A)  Biometric time clocks 
B)  Magnetic swipe ID cards 
C)  Mobile remote devices 
D)  Proximity cards

Question 10

Which transaction is not processed in the Fixed Asset System?

Accepted Answer

A)  purchase of building 
B)  improvement of equipment 
C)  purchase of raw materials 
D)  sale of company van 
A)  purchase of building 
B)  improvement of equipment 
C)  purchase of raw materials 
D)  sale of company van

Question 11

Payroll uses time card data to do all of the following except

Accepted Answer

A)  prepare the payroll register 
B)  update employee payroll records 
C)  prepare the labor distribution summary 
D)  prepare paychecks 
A)  prepare the payroll register 
B)  update employee payroll records 
C)  prepare the labor distribution summary 
D)  prepare paychecks

Question 12

Timekeeping is part of the personnel function.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

What is recorded by the asset maintenance part of the Fixed Asset System?

Accepted Answer

periodic depreciation followin

Question 15

All of the following are processed by the Fixed Asset System except

Accepted Answer

A)  sale of unneeded equipment 
B)  purchase of raw materials 
C)  repair of production equipment 
D)  purchase of a new plant 
A)  sale of unneeded equipment 
B)  purchase of raw materials 
C)  repair of production equipment 
D)  purchase of a new plant

Question 16

What is a personnel action form?

Accepted Answer

The personnel action form provides the p

Question 17

A control technique that can reduce the risk of a terminated employee being paid is

Accepted Answer

A)  a security camera viewing the time clock 
B)  the supervisor taking role during the shift 
C)  paychecks being distributed by an independent paymaster 
D)  reconciliation of time cards and job tickets 
A)  a security camera viewing the time clock 
B)  the supervisor taking role during the shift 
C)  paychecks being distributed by an independent paymaster 
D)  reconciliation of time cards and job tickets

Question 18

The Golf Club Company makes custom golf clubs.The manufacturing supervisor interviews people who have specialized manufacturing skills,and he informs payroll when an employee is hired.The employees use a time clock to record the hours they work.The employees are also required to keep a record of the time they spend working on each order.The supervisor approves all time cards.
The accountant analyzes the job tickets and prepares a labor distribution summary.Payroll prepares the payroll register and paychecks.The supervisor distributes the paychecks to the employees.Payroll informs cash disbursement of the funds required to cover the entire payroll amount.The cash disbursements clerk ensures that there are adequate funds in the company's regular checking account to cover the payroll.
Describe at least three internal control weaknesses; for each weakness suggest an improvement to internal control.

Accepted Answer

WEAKNESS: The supervisor could be creati

Question 19

Outline the key steps taken in a payroll system that deals with hourly workers who are paid once each week.

Accepted Answer

Work centers monitor employee time and p

Question 20

In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?

Accepted Answer

The two documents are the time card and

Inventory control authorizes fixed asset purchases with a purchase requisition.

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

The payroll department is responsible for both updating the employee records and writing paychecks.

Which of the following statements is not true?

The Fixed Asset System performs all of the following except

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

Depreciation records include all of the following information about fixed assets except

Which internal control is not an important part of the payroll system?

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

Which transaction is not processed in the Fixed Asset System?

Payroll uses time card data to do all of the following except

Timekeeping is part of the personnel function.

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

What is recorded by the asset maintenance part of the Fixed Asset System?

All of the following are processed by the Fixed Asset System except

What is a personnel action form?

A control technique that can reduce the risk of a terminated employee being paid is

Outline the key steps taken in a payroll system that deals with hourly workers who are paid once each week.

In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?

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

Inventory control authorizes fixed asset purchases with a purchase requisition.

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

The payroll department is responsible for both updating the employee records and writing paychecks.

Which of the following statements is not true?

The Fixed Asset System performs all of the following except

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

Depreciation records include all of the following information about fixed assets except

Which internal control is not an important part of the payroll system?

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

Which transaction is not processed in the Fixed Asset System?

Payroll uses time card data to do all of the following except

Timekeeping is part of the personnel function.

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

What is recorded by the asset maintenance part of the Fixed Asset System?

All of the following are processed by the Fixed Asset System except

What is a personnel action form?

A control technique that can reduce the risk of a terminated employee being paid is

Outline the key steps taken in a payroll system that deals with hourly workers who are paid once each week.

In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?

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