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

The payroll department performs all of the following except

The Fixed Asset Systems does all of the following except

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

Describe an internal control that would prevent an employee from stealing a computer and then reporting it as scrapped.

Describe how the Fixed Asset System differs from the expenditure cycle.

In the payroll subsystem,which function should distribute paychecks?

Employee paychecks should be drawn against a special checking account.

The personnel action form provides authorization control by

Payroll checks are typically drawn on

Accounting conventions and IRS rules sometime specify the depreciation parameters to be used.

What negative consequences result when fixed asset records include assets that are no longer owned by the firm?

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

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.

Work-in-process records are updated by payroll personnel.

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

The personnel department authorizes changes in employee pay rates.

Asset disposal

Why does the payroll process lend itself to batch processing?

Which control is not a part of the Fixed Asset System?

How do Fixed Asset Systems differ from the expenditure cycle?