Chapter 10

Question 1

Payroll processes

Answer 1

the policies and procedures that employees follow in acquiring and maintaining human resources, capturing and maintaining employee data, paying the employees for their time worked, and recording the related cash and payroll liabilities and expenses

Question 2

fixed asset processess

Answer 2

policies and procedures involved in purchasing property; capturing and maintaining relevant data about the assets; paying for and recording the related assets; recording depreciation and other expenses; and accounting for gains and losses

Question 3

human resource department

Answer 3

responsible for maintaining records for each job and each employee within the organization, as well as tracking job vacancies and supporting the company’s recruitment efforts

Question 4

organization chart

Answer 4

maps out the jobs and reporting relationships

Question 5

time sheet

Answer 5

record of hours worked by an employee for a specific period of time

Question 6

payroll register

Answer 6

a complete listing of salary or wage detail for all employees for a given time

Question 7

payroll disbursements journal

Answer 7

prepared to provide a listing of all paychecks written, in check number sequence, with the total supporting the amount of payroll funds transferred to the payroll bank account

Question 8

risk controls

Answer 8

authorization of transactions
segregation of duties
adequate records and documents
safeguarding of assets
independent checks and reconciliation
cost benefit considerations

Question 9

paymaster

Answer 9

person who distributes paychecks to employees, often referred to as this

Question 10

capital budget

Answer 10

a financial plan detailing all of the company’s investments in fixed assets and other investments

Question 11

fixed asset subsidiary ledger

Answer 11

a detailed listing of the company’s fixed assets, divided into categories consistent with the general ledger accounts

Question 12

fixed assets continuance

Answer 12

refers to the processes required to maintain accurate and up to date records regarding all fixed assets throughout their useful lives
involves
updating cost data for improvements to the assets
updating estimated figures as needed
adjusting for periodic depreciation
keeping track of the physical location of assets

Question 13

depreciation schedule

Answer 13

the record detailing the amounts and timing of depreciation for all fixed asset categories except land

Question 14

ghost employee

Answer 14

an entity who receives a paycheck, but who does not actually work for the company