CPP CERTIFICATION ACTUAL TEST BANK
UPDATED QUESTIONS AND VERIFIED
RESPONSES
●● Form W-9
Answer: First, it is used by third parties to collect identifying
information to help file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the
person who files the information return for verification purposes.
The information on the Form W-9 and the payment made are reported on
a Form 1099.
The second purpose is to help the payee avoid backup withholding. The
payer must collect withholding taxes on certain reportable payments for
the IRS. However, if the payee certifies on the W-9 they are not subject
to backup withholding they generally receive the full payment due them
from the payer. This is similar to the withholding exemptions
certifications found on Form W-4 for employees.
●● Form SS-5
Answer: Apply for an original Social Security card
Apply for a replacement Social Security card
,Change or correct information on your Social Security number record
●● Form SS-4
Answer: Application for Employer Identification Number (EIN)
●● Accounting equation (Balance Sheet)
Answer: Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
●● Asset (Debit or Credit Normal Balance?)
Answer: Debit
●● Expense (Debit or Credit Normal Balance?)
Answer: Debit
●● Liability (Debit or Credit Normal Balance?)
Answer: Credit
●● Capital (Debit or Credit Normal Balance?)
Answer: Credit
●● Owners Equity (Debit or Credit Normal Balance?)
,Answer: Credit
●● Revenue (Debit or Credit Normal Balance?)
Answer: Credit
●● Supportive Communication
Answer: Supportive communication is a style of communicating that has
a specific set of goals and techniques. The primary goal of supportive
communication is to resolve conflict or achieve change in a situation
while preserving, even strengthening, the relationship between the
communicating individuals. This style of communication is used in
many types of interpersonal interactions, such as those including a
power differential, as is found between manager and employee, teacher
and student, or parent and child. It is also effective when used between
those with more equal power, such as spouses, business partners and
friends. Learning these techniques can result in more effective
communication.
●● Standard Payroll System Reports
Answer: Standard reports are already set up within the payroll system
and can be generated as required. These include reports on payroll audit,
new hires, terminations, compensation changes, benefit costs and
vacation. The payroll system user can define the parameters of the report
such as limiting information to specific dates, departments and
categories.
, ●● Min Wage with Tips
Answer: The Fair Labor Standards Act (FLSA) requires payment of at
least the federal minimum wage to covered, nonexempt employees. An
employer of a tipped employee is only required to pay $2.13 an hour in
direct wages if that amount plus the tips received equals at least the
federal minimum wage, the employee retains all tips and the employee
customarily and regularly receives more than $30 a month in tips. If an
employee's tips combined with the employer's direct wages of at least
$2.13 an hour do not equal the federal minimum hourly wage, the
employer must make up the difference.
Some states have minimum wage laws specific to tipped employees.
When an employee is subject to both the federal and state wage laws, the
employee is entitled to the provisions which provides the greater
benefits.
●● Escheat laws
Answer: Refer to unclaimed property obligations. Companies who issue
checks-for wages, payroll, employee commissions, returnable
garnishments, deferred compensation, payroll services or bonuseshave a
potential (and probable) unclaimed property obligation.
●● Schedule D (Form 941)
Answer: to explain certain discrepancies (caused by acquisitions,
statutory mergers, and consolidations) between Forms W-2, Wage and
Tax Statement (Copy A), and Forms 941, Employer's QUARTERLY
Federal Tax Return, for the totals of social security wages, Medicare
UPDATED QUESTIONS AND VERIFIED
RESPONSES
●● Form W-9
Answer: First, it is used by third parties to collect identifying
information to help file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the
person who files the information return for verification purposes.
The information on the Form W-9 and the payment made are reported on
a Form 1099.
The second purpose is to help the payee avoid backup withholding. The
payer must collect withholding taxes on certain reportable payments for
the IRS. However, if the payee certifies on the W-9 they are not subject
to backup withholding they generally receive the full payment due them
from the payer. This is similar to the withholding exemptions
certifications found on Form W-4 for employees.
●● Form SS-5
Answer: Apply for an original Social Security card
Apply for a replacement Social Security card
,Change or correct information on your Social Security number record
●● Form SS-4
Answer: Application for Employer Identification Number (EIN)
●● Accounting equation (Balance Sheet)
Answer: Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
●● Asset (Debit or Credit Normal Balance?)
Answer: Debit
●● Expense (Debit or Credit Normal Balance?)
Answer: Debit
●● Liability (Debit or Credit Normal Balance?)
Answer: Credit
●● Capital (Debit or Credit Normal Balance?)
Answer: Credit
●● Owners Equity (Debit or Credit Normal Balance?)
,Answer: Credit
●● Revenue (Debit or Credit Normal Balance?)
Answer: Credit
●● Supportive Communication
Answer: Supportive communication is a style of communicating that has
a specific set of goals and techniques. The primary goal of supportive
communication is to resolve conflict or achieve change in a situation
while preserving, even strengthening, the relationship between the
communicating individuals. This style of communication is used in
many types of interpersonal interactions, such as those including a
power differential, as is found between manager and employee, teacher
and student, or parent and child. It is also effective when used between
those with more equal power, such as spouses, business partners and
friends. Learning these techniques can result in more effective
communication.
●● Standard Payroll System Reports
Answer: Standard reports are already set up within the payroll system
and can be generated as required. These include reports on payroll audit,
new hires, terminations, compensation changes, benefit costs and
vacation. The payroll system user can define the parameters of the report
such as limiting information to specific dates, departments and
categories.
, ●● Min Wage with Tips
Answer: The Fair Labor Standards Act (FLSA) requires payment of at
least the federal minimum wage to covered, nonexempt employees. An
employer of a tipped employee is only required to pay $2.13 an hour in
direct wages if that amount plus the tips received equals at least the
federal minimum wage, the employee retains all tips and the employee
customarily and regularly receives more than $30 a month in tips. If an
employee's tips combined with the employer's direct wages of at least
$2.13 an hour do not equal the federal minimum hourly wage, the
employer must make up the difference.
Some states have minimum wage laws specific to tipped employees.
When an employee is subject to both the federal and state wage laws, the
employee is entitled to the provisions which provides the greater
benefits.
●● Escheat laws
Answer: Refer to unclaimed property obligations. Companies who issue
checks-for wages, payroll, employee commissions, returnable
garnishments, deferred compensation, payroll services or bonuseshave a
potential (and probable) unclaimed property obligation.
●● Schedule D (Form 941)
Answer: to explain certain discrepancies (caused by acquisitions,
statutory mergers, and consolidations) between Forms W-2, Wage and
Tax Statement (Copy A), and Forms 941, Employer's QUARTERLY
Federal Tax Return, for the totals of social security wages, Medicare
