Chap 1 Quiz Flashcards
Why is outsourced payroll popular among accounting professionals?
Multiple Choice
- Time required for payroll processing is reduced.
- Data generated by the outsource company is completely accurate.
- Payroll processing is always simpler and quicker.
- Records generated by outsourced vendors are not subject to retention rules.
Time required for payroll processing is reduced.
Which of the following is among the guidelines for a Code of Ethics?
Multiple Choice
- Corporate Profitability
- Company Interest
- Professionalism
- Interdependence
Professionalism
The U.S. v. Windsor case repealed an Act and affected payroll tax withholdings for certain employees. Which Act did Windsor repeal?
Multiple Choice
- DOMA
- ATRA
- ARRA
- OSHA
DOMA
The Worker’s Compensation Act of 1935 legislated the payment of worker’s compensation insurance.
T/F
False
No federal legislation exists regarding the payment of worker’s compensation insurance.
The _______ granted small employers tax incentives for implementing automatic retirement plan enrollment for their employees.
Multiple Choice
- MARKET Act
- SECURE Act
- RETIRE Act
- SAFE AGE Act
SECURE Act
The IRS uses EINs to track employers for tax purposes.
T/F
True
The Lilly Ledbetter Act of 2009 removed the 180-day statute of limitations for claims of unequal treatment among workers who perform identical tasks.
T/F
True
The Equal Pay Act of 1963 was the first legislation that addressed pay equity.
Leslie is the accountant for a major movie production. She is approached by a group of people from the press who ask her questions about the salaries of the actors and actresses involved in the film. According to the Code of Ethics, which principle most closely governs the appropriate conduct in this situation?
Multiple Choice
- Objectivity and Independence
- Confidentiality
- Professional Competence and Due Care
- Integrity
Confidentiality
Worker’s compensation insurance premiums:
Multiple Choice
- Are mandated by the Fair Labor Standards Act.
- Are governed by state laws and vary according to worker job classification.
- Are the same amount for all employees of a company, regardless of employee task.
- Are remitted in full at the end of the year to ensure accuracy.
Are governed by state laws and vary according to worker job classification.
What is the effect of payroll-related legislation on payroll practice?
Multiple Choice
- Legislation has alleviated the need for a company to design its own payroll system.
- Legislation explicitly dictates specific activities of payroll accountants.
- Legislation highlights the need for firms to create well-designed payroll systems.
- Legislation has prescribed the format and delivery of a payroll system.
Legislation highlights the need for firms to create well-designed payroll systems.
