Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Section 3 > Post Assessment > Flashcards

Post Assessment Flashcards

1
Q

The purpose of payroll legislation is to:

Multiple Choice

  • Generate increased tax revenue for governmental entities.
  • Increase the complexity involved in compensating employees.
  • Promote governmental involvement in business activities.
  • Protect the rights of employees by legislating workplace equity.
A

Protect the rights of employees by legislating workplace equity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The Age Discrimination in Employment Act of 1967 prevented mandatory retirement for workers over the age of:

Multiple Choice

  • 50.
  • 55.
  • 45.
  • 40.
A

40

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The Worker’s Compensation Act of 1935 legislated the payment of worker’s compensation insurance.

T/F

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Payroll accounting systems may involve an integrated software package that contains business-planning tools.

T/F

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Which of the following is not an option available to payroll accountants?

Multiple Choice

  • Payroll preparation through manual, handwritten spreadsheets.
  • Governmentally mandated and monitored payroll outsourcing.
  • Increased use of paycards as a vehicle for paying employees.
  • Reduced responsibility for accuracy because of outsourcing services.
A

Reduced responsibility for accuracy because of outsourcing services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A provision of the __________ made managers and supervisors ineligible to participate in the tip pools, when used for tipped employees.

Multiple Choice

  • Tipped Employees Act
  • Tax Cuts and Jobs Act
  • Consolidated Appropriations Act
  • Equal Employment Act
A

Consolidated Appropriations Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which Act governs the minimum wage that must be paid to nonexempt workers?

Multiple Choice
- SSA

  • FICA
  • FLSA
  • FUTA
A

FLSA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the difference between termination and resignation, as far as final pay is concerned?

Multiple Choice

  • Resignation pay must be paid within one week and termination pay must be the next business day.
  • Resignation pay must be paid on the next business day and termination pay is due immediately.
  • Resignation and termination pay are subject to state regulations.
  • Resignation pay may be paid at the next regular pay date, but termination pay is subject to state law.
A

Resignation pay may be paid at the next regular pay date, but termination pay is subject to state law.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Adrienne is a nonexempt employee who works for a firm that has an elected workweek composed of four 10-hour days and pays overtime after 40 hours worked per week. What is the rule about overtime for her work situation?

Multiple Choice

  • She will receive overtime pay when working more than 10 hours during a shift.
  • She must be compensated for all hours worked past 8 in a single day.
  • She is not eligible for overtime pay.
  • She receives overtime only when she works past 40 hours in any given week.
A

She receives overtime only when she works past 40 hours in any given week.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which pay frequency has 24 pay periods annually?

Multiple Choice

  • Semi-weekly
  • Weekly
  • Biweekly
  • Semimonthly
A

Semimonthly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Only regular working hours are considered as the worked hours for overtime computation.

T/F

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

It is considered a best practice to assign one employee all payroll duties.

T/F

A

False.

A best practice in payroll accounting is the separation of duties among multiple employees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Computerized payroll records are considered a(n):

Multiple Choice

  • Closed access.
  • Open system.
  • Open access.
  • Closed system.
A

Closed system.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Allen is an employee of the foreign subsidiary of a United States based company who lives and works in the United Kingdom. According to FATCA, how much of his wages may Allen exclude from United States’ taxes, according to 2020 guidelines?

Multiple Choice

  • $46,500
  • $79,850
  • $107,600
  • None of the choices are correct.
A

$107,600

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

According to the FLSA, when must overtime be paid to nonexempt employees?

Multiple Choice

  • Any time the employee works more than 8 hours per day.
  • Any time the employee works more than 6-days during a one-week period.
  • Any hours worked in excess of 40 in a 7-day, 168-hour period.
  • Any hours deemed overtime by the employee’s supervisor.
A

Any hours worked in excess of 40 in a 7-day, 168-hour period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Robin, 18 years of age, is an hourly worker in her college’s bookstore in Washington State. She works 37 hours during a two-week pay period in her second month of work for the bookstore. The minimum gross pay that she may receive for that two-week period is ________. (Round to the nearest cent.)

Multiple Choice

  • $228.01
  • $157.25
  • $268.25
  • $344.84
A

$157.25

Employees under the age of 20 may receive $4.25/hour for the first 90 days of employment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Mac is a cook at a local restaurant and earns $9.15 per hour. He occasionally serves as the crew chief, for which he receives an additional $2.50 per hour. During a biweekly pay period, he had the following time data:

Cook: 75 hours (including 8 hours overtime)
Crew chief: 13 hours

His gross pay for the pay period would be ________.

Multiple Choice

  • $841.80
  • $874.30
  • $902.58
  • $878.31
  • $841.80
A

$874.30

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Naveen is a salaried nonexempt employee who earns annually $39,500 for a 40-hour workweek that is paid semimonthly. He is occasionally on-call for his employer. During the on-call time, Naveen is required to be available for phone calls and must have internet access, but is otherwise able to pursue his own interests. Company policy allows for four hours of regular pay for each day that the employee is on-call. How much should Naveen’s gross pay be for a pay period in which he is on-call for three days?

Multiple Choice

  • $1,747.12
  • $1,721.79
  • $1,645.83
  • $1,873.72
A

$1,873.72

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Nonexempt employees are usually workers who:

Multiple Choice

  • Routinely supervise other employees.
  • Are exempt from certain company rules.
  • Occupy executive positions in the company.
  • Perform operative level tasks.
A

Perform operative level tasks.

20
Q

Quinn works the following hours during a one-week period:

Day	          Hours	           Minutes
Monday  	8	              34
Tuesday	        7	              56
Wednesday	7	              58
Thursday	8	             42
Friday	        8	              2

Under the hundredth-hour method, how many hours has he worked?

Multiple Choice

  • 41.25 hours
  • 41.53 hours
  • 41.20 hours
  • 41.85 hours
A

41.20 hours

21
Q

Daanyal is a salaried nonexempt employee who is married with two dependents and earns $34,000 per year. During a biweekly pay period, he worked 88 hours. His standard workweek is 40 hours. What is Daanyal’s gross pay for the period?

Multiple Choice

  • $1,307.69
  • $1,438.80
  • $1,489.26
  • $1,503.85
A

$1,503.85

22
Q

________ is the price that a person would pay for an item in an arm’s length transaction.

Multiple Choice

  • Manufacturer’s Suggested Retail Price
  • Fair Market Value
  • De Minimis
  • General valuation
A

Fair Market Value

23
Q

Under the ________, benefits offered only during the last two months of the calendar year may be treated as paid during the following calendar year.

Multiple Choice

  • Benefits valuation rule
  • IRS Publication 15
  • ERISA
  • Special accounting rule
A

Special accounting rule

24
Q

Single employees with a high-deductible health plan may contribute a maximum of _____ to a health savings account.

Multiple Choice

  • $3,550
  • $3,500
  • $3,600
  • $3,650
A

$3,550

25
Q

According to the Consumer Credit Protection Act, what is the maximum percentage of an employee’s disposable earnings that may be withheld as part of a consumer credit garnishment?

Multiple Choice

  • 25%
  • 35%
  • 40%
  • 50%
A

25%

26
Q

The cash value of ________ must be included as compensation on the employee’s W-2.

Multiple Choice

  • gift cards
  • plaques and trophies
  • occasional meals and snacks
  • on-site athletic facilities
A

gift cards

27
Q

The Families First Coronavirus Response Act mandated employer responsibility for mandated additional fringe benefits until_________.

Multiple Choice

  • September 30, 2020
  • December 31, 2020
  • July 31, 2020
  • May 1, 2020
A

December 31, 2020

28
Q

What method(s) may be used to determine the fair market value of the personal use of a company car?

Check all that apply:

  • Appraised value rule
  • Cents-per-mile rule
  • Replacement value rule
  • Commuting rule
A
  • Cents-per-mile rule
  • Commuting rule
29
Q

State and Local Income Tax rates ________.

Multiple Choice

  • are mandated by Federal law
  • are paid by the employer to the Federal government
  • differ among states and localities
  • exist at the same level in every state
A

differ among states and localities

30
Q

Natalia is a full-time exempt employee who earns $215,000 annually, paid monthly. Her year-to-date pay as of November 30 is $197,083.33. How much will be withheld from Natalia for FICA taxes for the December 31 pay date? (Social Security maximum wage is $137,700. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Multiple Choice

  • $1,370.63
  • $421.04
  • $394.79
  • $292.04
A

$394.79

31
Q

The use of paycards as a means of transmitting employee pay began in the 1990s with over-the-road drivers out of a need to transmit funds reliably on pay dates.

T/F

A

True

32
Q

Disposable income is defined as:

Multiple Choice

  • An employee’s gross pay less Identify Pre-Tax Deductions.
  • An employee’s pay after legally required deductions have been withheld.
  • An employee’s net pay less living expenses like rent and utilities.
  • An employee’s taxable income less Understand Post-Tax Deductions.
A

An employee’s pay after legally required deductions have been withheld.

33
Q

Which of the following states do not have state income tax deducted from employee pay?

Check all that apply:

  • Maine
  • Alaska
  • Montana
  • New Hampshire
A

-
- Alaska
-
- New Hampshire

34
Q

Nickels Company is located in West Virginia has employees who live in Ohio, Florida, Tennessee, and West Virginia. For which state(s) should the company collect and remit state income tax?

Check all that apply:

  • Florida
  • Tennessee
  • Ohio
  • West Virginia
A

  • Ohio
  • West Virginia
35
Q

Anadama Painters has 15 employees and is located in South Dakota. The total wages for the last year was $389,458. What was the FUTA tax liability for the year? (Assume that all employees have exceeded the annual FUTA wage base of $7,000 per employee and that the FUTA rate is 0.6%.)

Multiple Choice

  • $620
  • $645
  • $630
  • $608
A

$630

Employees: 15 $ 7,000.00 0.6% = $ 630.00

36
Q

The time period that the IRS uses to determine a firm’s payroll tax deposit schedule is called the:

Multiple Choice

  • Prior year.
  • Lookback period.
  • Evaluation period.
  • Tax lookback.
A

Lookback period.

37
Q

Concrete Works is a California company with a SUTA tax of 5.2% and a SUTA wage base of $7,000. The employee earnings for the past year are: T. Borek $18,225, G. Hizny $2,750, A. McBean $19,200, C. Triebert $5,450. California, employers pay an Employment Training Tax (ETT) of 0.1% on all wages up to the first $7,000 of wages.

What is the total of the employer-share taxes for FUTA, SUTA, ETT (0.1%), and FICA for the year? (ignore worker’s compensation insurance).

Multiple Choice

  • $4,800.12
  • $8,430.21
  • $5,189.29
  • $4,916.17
A

$4,800.12

38
Q

Trick’s Costumes has 65 employees, who are distributed as follows:

Design - 12 employees
Fabrication - 30 employees
Purchasing - 8 employees
Administration - 10 employees
Sales - 5 employees

The payroll-related costs for the year are $1,043,050. If Trick’s Costumes does use departmental classification, how much is allocated to the Purchasing department? (Do not round intermediate calculations. Round final answer to 2 decimal places.)

Multiple Choice

  • $176,516.15
  • $160,469.23
  • $120,351.92
  • $128,375.38
A

$128,375.38

39
Q

Maeisha works for Brown Corporation, where she earns $45,000. Her employer contributes 1% of her pay to her pension fund and pays the following monthly amounts for her insurance: health, $300; life, $50; AD&D, $25. She receives $40 per month for her gym membership and receives a $400 bonus at the end of the year. Brown Corporation pays employer-only taxes and insurance that comprises an additional 12% of Maeisha’s annual salary. What is Maeisha’s total annual compensation?

Multiple Choice

  • $56,230.00
  • $54,849.30
  • $50,766.80
  • $54,451.30
A

$56,230.00

40
Q

Which of the following items is always the employer’s sole responsibility?

Multiple Choice

  • SUTA taxes
  • Federal income tax
  • FUTA taxes
  • FICA taxes
A

FUTA taxes

41
Q

In what order are accounts presented on the trial balance?

Multiple Choice

  • The same as the chart of accounts
  • Alphabetically
  • By order of importance
  • By dollar amount
A

The same as the chart of accounts

42
Q

In which order are transactions listed in the General Journal?

Multiple Choice

  • Numerically
  • Alphabetically
  • Order of importance
  • Chronologically
A

Chronologically

43
Q

A(n) ________ is the classification for cash and other items that are used in the operation of the business.

Multiple Choice

  • Revenue
  • Liability
  • Asset
  • Equity
A

Asset

44
Q

Which of the following columns of the payroll register would be part of a general journal entry?

Check all that apply:

  • Net pay
  • Total overtime earnings
  • Earnings subject to FICA tax
  • Health insurance payable
A
  • Net pay
  • Health insurance payable
45
Q

The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal.

T/F

A

True

46
Q

The purpose of the ________ is to record all the financial transactions of a firm.

Multiple Choice

  • General Ledger
  • General Journal
  • Payroll register
  • T-account
A

General Journal

Section 3 (30 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions