Term
Traditionally, accountants have been most involved with which portion of the HRM/payroll cycle?
a. hiring
b. payroll
c. training
d. performance evaluation |
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Definition
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Term
Which of the following statements is true?
a. Financial statements report the value of employee knowledge and skills.
b. Turnover and absenteeism are costly.
c. Outsourcing of HRM and payroll functions improves effectiveness.
d. Default configurations of ERP packages typically provide good segregation of duties. |
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Definition
answer:
b. Turnover and absenteeism are costly.
Turnover costs 1.5 times the departing employee's salary, and absenteeism increases overtime and short-term hiring costs. |
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Term
Which document lists the current amount and year-to-date totals of gross pay, deductions, and net pay for one employee?
a. payroll register
b. time card
c. paycheck
d. earnings statement |
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Definition
answer:
d. earnings statement
The earnings statement attatched to each paycheck provides the information listed. |
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Term
Online processing is most useful for which of these tasks?
a. preparing payroll checks
b. reconciling job-time tickets and time cards
c. paying payroll tax obligations
d. making changes in employee benefit choices |
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Definition
answer:
d. making changes in employee benefit choices
Employees want to be able to have access to this information and make changes whenever desired. |
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Term
Use of a payroll service bureau or a PEO provides all of these benefits except which of the following?
a. integration of payroll and personnel data, such as job skills
b. lower cost of processing payroll
c. less need for developing and maintaining payroll
d. fewer staff needed to process payroll |
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Definition
| a. integration of payroll and personnel data, such as job skills |
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Term
Which control procedure whould be most effective in detecting the failure to prepare a paycheck for a new employee before paychecks are distributed?
a. validity checks n the employee number on each time card
b. record counts of time cards submitted and time cards processed
c. zero-balance check
d. use of a serarate payroll bank account |
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Definition
answer:
b. record counts of time cards submitted and time cards processed
Batch totals like record counts would identify failure to process all transaction records. |
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Term
Which department should have responsibility for authorizing pay-rate changes?
a. timekeeping
b. payroll
c. HRM
d. accounting |
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Definition
answer:
c. HRM
HRM has no other role in the payroll process. |
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Term
To mazimize effectiveness of internal controls over payroll, which of the following persons should be responsible for distributing employee paychecks?
a. departmental secretary
b. payroll clerk
c. controller
d. departmental supervisor |
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Definition
answer:
a. departmental secretary
This person has no other payroll duties so cannot conceal theft of paychecks. |
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Term
Where should unclaimed paychecks be returned?
a. HRM department
b. cashier
c. payroll department
d. absent employee's supervisor |
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Definition
answer:
b. cashier
This permits funds to be quickly redeposited. |
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Term
Which of the following is important supporting documentation to authorize the transfer of funds to the payroll bank account?
a. earnings statement
b. time card
c. payroll register
d. W-2 form |
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Definition
answer:
c. payroll register
This document summarizes the amount to be paid to each employee and is sent to the accounts payable department for use in preparing a disbursement voucher to authorize the transfer of funds to the payroll account. |
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