ACNT1329- Ch 1 Questions
The Americans with Disabilities Act of 1990 (ADA) applies to employers with _____ or more employees.
15
Which Civil Rights Act added monetary penalties to workplace discrimination?
1991
The Form I-9 document is used by employers to collect information on an employee's ________ ________ to work in the United States.
Legal Authorization
Which of the following company employees does payroll affect?
Production worker; President/CEO; Manager
What IRS publication is used frequently in manual payroll preparation?
Publication 15
Which of the following is NOT a commercially available computerized accounting program used to prepare payroll? Multiple choice question.
Quicken
Employee safety programs represent an additional cost to the employer.
True
Since the recession of 2007-2009, employee retirement benefits have shifted from being a liability to a hiring strategy for employers.
True
USERRA was amended in 2011 by the ____ ____ ____ ____ Act.
Veterans Opportunity to Work
The main question to test the integrity of a situation is
am I doing what is right for everyone concerned?
The Consolidated Omnibus Budget Reformation Act of 1985 (COBRA) extended benefits for terminated employees at the
employee's expense.
External payroll providers offer _________ and data ________ that may be challenging for small companies.
flexibility; analysis
Despite the Sarbanes-Oxley Act, the payroll accounting industry is rife with _________ and ____________.
fraud; theft
The Walsh-Healey Public Contracts Act was designed to affect _____ ______ that provided goods or services in excess of $10,000.
government contractors
Personal ________ and ________ are essential elements of professionalism
honesty; transparency
A payroll challenge in larger companies is the existence of
multiple departments.
Payment of legally due payroll amounts becomes a moral _________ between the ___________ and the recipients.
obligation; employer
The Davis-Bacon Act combined over 60 different federal statues and provided a _______ ________ and wage classification strategy.
prevailing wage
Computer-based accounting programs require regular __________ updates to ensure accuracy.
software
Why must accountants take care to maintain objectivity and independence in their work?
To maintain the integrity of their work.
What was the purpose of the Current Tax Payment Act?
To obtain employer remittance of payroll taxes.
Payroll errors may cause serious _________ and _________ problems.
internal; external
Worker's compensation insurance is designed to provide _________ continuation and to pay for medical services for workers injured during the course of business.
wage
Which of the following was a purpose of the Davis-Bacon Act?
wage standards for employees; small business revenue increase
Companies who use outsourced payroll processing are not responsible for the accuracy of their payroll.
False
Contemporary payroll practices include a sole reliance on electronic accounting software.
False
Why does the federal government use Certified Payroll, as prescribed by the Davis-Bacon Act?
Facilitation of internal accountability
In manual payroll processing, ______ ______ is a highly important reference.
Publication 15 OR Circular E
The purpose of the Equal Pay Act of 1963 was to ensure that
males and females receive the same pay for performing the same work.
With a small company, the human resource director, office __________, and ___________ professional may be roles performed by the same person.
manager; payroll
One of the best-known provisions of the Fair Labor Standards Act is the
minimum wage
As it relates to OSHA, fines for ______ and payments made following ______ injuries can be costly.
noncompliance; workplace
What are some of the provisions of the Fair Labor Standards Act?
Better recordkeeping ; Worker protection ; Minimum wages for workers
ERISA was extended by which act?
COBRA
The ________ _________ ______ of 1991 added monetary penalties to workplace discrimination.
Civil Rights Act
Which of the following is true about certified payroll?
Companies engaged in government payments under the Davis-Bacon Act must file a report delineating the payroll paid. ; It maintains records about payroll payments for government contracts.
The Walsh-Healey Public Contracts Act affected governmental contractors who provided goods or services in excess of Multiple choice question.
$10,000
The Davis-Bacon Act was enacted to create a standard of wages for governmental contracts in excess of
$2,000
USERRA and the Veterans Opportunity to Work provided which of the following protections?
Accommodations for injured military veterans; Claims of a hostile work environment after returning from military service
Why do companies outsource payroll functions?
Strategic planning; Time involved with payroll preparation
The ethical principles of _______ and ______ help an accountant maintain the integrity of their work.
Objectivity; Independence
An accountant must remain current with ___________ practices and legal __________ as part of the ethical principle of due care.
accounting; developments
The Consolidated Omnibus Budget Reformation Act of 1985 (COBRA) extended medical benefits for which workers?
terminated
Companies use ______ collection devices to collect time worked by hourly employees.
time
The Age Discrimination in Employment Act pertains to workers older than ____ years of age.
40
The combination of the Old-Age, Survivors, and Disability Insurance and Medicare is commonly known as
FICA
Which of the following accurately describes exempt workers under the Fair Labor Standards Act?
Exempt employees are not subject to the wage and overtime provisions of the FLSA.
The provisions of the Americans with Disabilities Act of 1990 (ADA) apply to employers with how many employees on their payroll? Multiple choice question.
15 or more
According to PRWOR, Employers must file a new hire reporting form with the appropriate governmental agencies within how many days of the employee's initial hire?
20
Which of the following is false about the purpose of FUTA and SUTA?
Anyone whose employment has been terminated may qualify for assistance. ; FUTA and SUTA payments are based on the employee's prior wages.
Which of the following would NOT be a result of flawed payroll accounting?
Correct employee pay
Prior to enactment of the _____ _____ ______ ______, no formal guidelines existed for tax remittance by employers.
Current Tax Payment Act
Which of the following are examples of contemporary payroll accounting practices (select all that apply)?
Direct deposit regulations; Electronic filing requirements
Direct deposits regulations [matches] Employee pay remittance In-house personnel [matches] Outsourced employees Company tax liability [matches] Governmental regulations
Direct deposits regulations [matches] Employee pay remittance In-house personnel [matches] Outsourced employees Company tax liability [matches] Governmental regulations
The federal government uses _____ ______ _____ to keep track of employers.
E-Employer I-Identification N-Number
Which Act protects the retirement income of employees from misuse by employers?
ERISA
Which of the following is true about the provisions of the Family and Medical Leave Act?
Employees may take reasonable leave without losing their job.
Who pays for FUTA liability?
Employer
Which of the following are examples of integrity in payroll situations?
Ensuring that all payroll situations are handled in a time-sensitive manner; Acknowledging and remedying errors in employee pay; Notifying management about inconsistencies with employee paychecks
Outsourcing of payroll duties is a cost effective solution for any organization.
False
Paid time off is mandated under the FLSA provisions.
False
The E-verify system replaces the need for employers to submit Form I-9.
False
The Lilly Ledbetter Fair Pay Act of 2009 extended the statute of limitations for Equal Pay Act allegations.
False
The ethical principle of due care states that an accountant must focus solely on accounting practices.
False
Which of the following accounting organizations have provided examples of ethical frameworks?
IMA; AICPA; IFAC
What was/were the main purpose(s) of the Fair Labor Standards Act?
Improved record keeping and employee protection
What are the purposes of computer-based payroll systems?
Integration of payroll with other accounting functions; Integration of tax withholding tables
[Blank] is the most important asset that a payroll accountant may possess.
Integrity
Sources of information that allow an accountant to exhibit due care include
Internal Revenue Service; American payroll association; AICPA; FASB
[Blank Blank] accounting software allows companies to use professional accounting software even if they do not have the resources to purchase a software package.
Internet Based
Which of the following is true about worker's compensation?
It is an insurance policy carried by employers.
Which of the following is true about Worker's Compensation insurance?
It provides wage continuation and medical services. ; It is governed by state laws. ; Policy amounts vary by the type of work performed.
Which of the following is true about payroll practices in large companies?
It reflects the complexity of the company structure.
Which of the following is correct about the Lilly Ledbetter Fair Pay Act of 2009?
It removed the statute of limitations.
Employer Identification Numbers are used for what purpose(s)?
It will appear on all federal tax forms; It notifies the IRS that a company may have employees; It reports information about the owner's social security number and other information.
Which of the following describes the ethical element of professionalism?
Maintaining confidentiality and public trust.
How do managers use internal payroll reports?
Managers use payroll reports to monitor labor usage. ; Managers use payroll reports to examine compensation trends.
The Consolidated Omnibus Budget Reformation Act of 1985 (COBRA) extended which benefits for terminated employees?
Medical Insurance
OASDI [matches] Provided assistance for families because of the infirmity of a wage-earning family member
Medicare [matches] Provided medical insurance for individuals over 62 years of age
Which of the following are examples of internet-based accounting services?
Microsoft Dynamics GP; Quickbooks
Which of the following were provisions for governmental contractors by the Walsh-Healey Public Contracts Act?
Minimum wage for all hours worked under 40 per week. ; Prohibition of employing workers under 16 years of age.
Which of the following are items that payroll accountants must keep confidential?
Social Security number; Employee legal obligations
Which of the following are part of the Social Security Insurance Act?
Social Security; Medicare
Under the Personal Responsibility and Work Opportunity Reconciliation Act, which of the following is true?
The Act protected children and needy families. ; Employers must report new hires within 20 days.
Which law requires employers to verify an employee's legal ability to work in the U.S.?
The Immigration Reform and Control Act of 1986
The Family and Medical Leave Act contained which of the following provisions for employees?
They may take medical leave under reasonable circumstances. ; The employee must be notified of benefits and processes while on leave.
Which of the following are time-collection devices that generate specific data?
Time sheets; Biometrics; Computer access
Which of the following are challenges that are associated with manual payroll processing?
Timely paycheck processing; Mastery of spreadsheet software; Changes to IRS tax guidelines
The Diane B. Allen Equal Pay Act in New Jersey prevented pay differences based on differences protected by civil rights laws.
True
The Diane B. Allen Equal Pay Act in New Jersey prevented pay differences based on differences protected by civil rights laws. True false question.
True
The PRWOR Act enforced ______ ______ obligations.
child support
A payroll accountant must maintain ___________ and exercise ___________ __________ in the course of their duties.
confidentiality; moral judgement
The Federal Unemployment Tax Act was enacted to help
displaced workers
