CPP Practice Exam Flashcards
Company deadlines for payroll data input documents are essential for:
A. Timely processing of the payroll
B. Accurate entry of data
C. Guaranteeing that all information is processed
D. Adequate auditing purposes
A. Timely processing of the payroll
Which of the following features is least likely to be considered when looking at the security of the new payroll system?
A. Regular data backup and storage
B. Protection against computer viruses
C. Limited system access
D. System edits
D. System edits
An employee earns $9 per hour and an additional 10 cents per hour for hours worked after 7pm. If an employee works from 2pm to 11pm with an unpaid meal break from 6pm to 7pm, Monday through Friday, what is the employee’s weekly gross pay under the fair labor standards act?
A. $360
B. $361
C. $362
D. $364
C. $362
The best reason for tracking pay related problem statistics is to enable payroll two:
A. Identify root causes and take actions to prevent similar recurrences
B. Apologize to clients in a more professional manner
C. Direct problems to those who caused the problem
D. Justify more resources to handle more problems
A. Identify root causes and take actions to prevent similar recurrences
With regard to employees’ reported tips, the employer must:
A. Withhold and pay only the employees’ portion of social security and Medicare taxes on tips
B. Report taxes on tips separately when making an employment tax deposit
C. Report tips as wages on Form W-2 and pay the employer portion of social security and Medicare taxes
D. Report and pay the employer portion of Social Security and Medicare taxes on the portion of cash tips above the federal minimum wage
C. Report tips as wages on Form W-2 and pay the employer portion of social security and Medicare taxes
Transactions are recorded in chronological order into books of original entry called:
A. Registers
B. Vouchers
C. Invoices
D. Journals
D. Journals
The KEY advantage to using an automated time and attendance system is that it:
A. Identifies phantom employees
B. Reduces errors
C. Interfaces with the payroll system
D. Frees supervisors from having to review hours
B. Reduces errors
As part of the implementation of a new payroll system, all transactions from the most recent actual payroll as processed in the new system prior to using the system to run payrolls. This is an example of what type of testing?
A. Compliance
B. Backup
C. Ongoing
D. Parallel
D. Parallel
To exhibit good customer service skills, payroll staff must understand and be able to explain:
A. Payroll forms
B. Benefits enrollment techniques
C. Systems design decisions
D. Strategic departmental direction
A. Payroll forms
Under the FLSA, what is the compensation due an employee whose rate of pay is $8 per hour and who is paid for 52 hours during a one-week period, including 8 hours of sick pay?
A. $416
B. $432
C. $448
D. $464
B. $432
All of the following data elements are required to be maintained in the employee masterfile except:
A. Social security number
B. Birth date
C. Marital status
D. Occupation
C. Marital status
Upward communication involves:
A. dissemination of management decisions to the staff
B. interactions between you and your manager
C. passing information to management
D. conducting quality circle meetings
C. passing information to management
The fact that transactions affect two separate accounts of a business is called:
A. compound-entry accounting
B. double-entry accounting
C. accrual accounting
D. T-accounting
B. double-entry accounting
A company pays all executives semimonthly. The FLSA requires all other employees to be paid on:
A. a weekly cycle
B. a biweekly cycle
C. a semimonthly cycle
D. any established cycle
D. any established cycle
Calculate the employee's gross pay under the FLSA based on the following data... Rate of pay per hour = $8 Production Bonus = $25 Shift differential per hour = $0.25 Total shift hours in a workweek = 44
A. $380.64
B. $377.00
C. $404.50
D. $405.64
D. $405.64
Which of the following answers BEST defines the term non-exempt under the FLSA?
A. a lower-paid class of employees
B. hourly-paid workers only
C. employees who must be paid overtime
D. a special class of employees as determined by the employer
C. employees who must be paid overtime
For how many years must the employer’s copy of Form 940 be retained?
A. 2
B. 3
C. 4
D. 5
C. 4
Copies of the production files and most recent payroll transactions are sent nightly to the parent company in a remote location. This practice is part of what type of plan?
A. security
B. control
C. disaster recovery
D. maintenance
C. disaster recovery