FPC PRACTICE QUESTIONS AND ANSWERS
100% VERIFIED.
You receive a penalty notice from a government agency. the info is not
readily available. what should you do first?
a. conduct a thorough investigation and send the report to the agency.
b. Ignore the letter because it will take time to location the information.
c. send a short letter to the agency stating that the issues is being reviewed.
d. call the agency and tell them you plan to location the info and send it in a
few months.
c. these notices must be responded to as quickly as possible. penalty notices
will continue to accrue interest and other fees if the notice is not handled
promptly. even a short letter to the agency stating that the issue is being
reviewed can reduce the penalties that may be assessed.
effective feedback, whether positive or negative, should be given as soon as
possible after an incident
true true
True
you receive a letter of inquiry concerning an employee. What should you do?
a. follow your companys policy on the release of employee info
b. ignore the letter becuase its the employees issue
c. send a short letter to the agency stating that the issue is being reviewed.
d. call the requested and tell them you plan to locate the info and send it in a
few months.`
a. follow company policy
privacy of employee info should be a top priority of the payroll manager, but
not necessarily a top priority of the payroll staff.
,true
false
false
every member of the payroll dept should be cognizant of the importance of
protecting employee info at all times
Internal control procedures include all of the following except:
a. system interfaces
b. rotation of duties
c. segregating jobs
d. account reconciliation
a. system interfacing
Which of the following is not a benefit of segregating job duties?
limit access to the payroll system
Which of the following is NOT a reason to reconcile the payroll bank account
every month?
to identify phantom employees
Actions that control the staff in order to protect the company against fraud
include all of the following except:
a. physical payouts
b. rotate assignemtns
c. segregate job duties
d. restrict system access
a. physical payouts
A validity edit in the payroll system verifies the system:
is operating within allowable ranges
,A record of the financial transactions by account is a:
a. balance sheet
b. ledger
c. journal
d. chart of accounts
b. ledger
what entry would be posted as a debit?
increase in an asset account
equation for a balance sheet
owners equity = assets - liabilities
How would an increase to an asset account be posted?
DEBIT
Assume that a deposit is due on Weds, but this is a non-banking day. to be
considered made timely, the employers deposit of federal payroll taxes
must be made on or before the close of business on:
a. tuesday
b. thursday
c. monday
d. friday
B. THURSDAY
a company is a monthly depositer for 2020. on payday, the company
accumulates a payroll tax liability of $101,000. the payroll tax deposits for
this liability must be made:
a. on or before the following wednesday
b. on or before the following friday
, c. by the next business day
d. by the 15th the following month
c. by the next buisness day
a company filed paper form W2 with the SSA on April 15. this action will
result in penalties of:
$110 per form W2
the statue of limitation for correcting a form 941 is:
a. due date of 941 form for quarter in which error was discovered
b. april 15 following the year error was discovered
c.. whenever discovered, up to 7 years
d. april 15 3 years after the close of tax year error was made
d. april 15, three years after the close of tax year error was made
which of the following records must be kept for 4 years:
a. OSHA records
b. time cards
c. voided payroll checks
d. hours worked
c. voided payroll checks
when a payroll department does not respond promptly to a penalty notice
from a governmental agency against an employee, this is an example of:
a. poor problem solving
b. breaching confidentiality
c. lack of compliance
d. responding to higher priorities
a. poor problem solving
100% VERIFIED.
You receive a penalty notice from a government agency. the info is not
readily available. what should you do first?
a. conduct a thorough investigation and send the report to the agency.
b. Ignore the letter because it will take time to location the information.
c. send a short letter to the agency stating that the issues is being reviewed.
d. call the agency and tell them you plan to location the info and send it in a
few months.
c. these notices must be responded to as quickly as possible. penalty notices
will continue to accrue interest and other fees if the notice is not handled
promptly. even a short letter to the agency stating that the issue is being
reviewed can reduce the penalties that may be assessed.
effective feedback, whether positive or negative, should be given as soon as
possible after an incident
true true
True
you receive a letter of inquiry concerning an employee. What should you do?
a. follow your companys policy on the release of employee info
b. ignore the letter becuase its the employees issue
c. send a short letter to the agency stating that the issue is being reviewed.
d. call the requested and tell them you plan to locate the info and send it in a
few months.`
a. follow company policy
privacy of employee info should be a top priority of the payroll manager, but
not necessarily a top priority of the payroll staff.
,true
false
false
every member of the payroll dept should be cognizant of the importance of
protecting employee info at all times
Internal control procedures include all of the following except:
a. system interfaces
b. rotation of duties
c. segregating jobs
d. account reconciliation
a. system interfacing
Which of the following is not a benefit of segregating job duties?
limit access to the payroll system
Which of the following is NOT a reason to reconcile the payroll bank account
every month?
to identify phantom employees
Actions that control the staff in order to protect the company against fraud
include all of the following except:
a. physical payouts
b. rotate assignemtns
c. segregate job duties
d. restrict system access
a. physical payouts
A validity edit in the payroll system verifies the system:
is operating within allowable ranges
,A record of the financial transactions by account is a:
a. balance sheet
b. ledger
c. journal
d. chart of accounts
b. ledger
what entry would be posted as a debit?
increase in an asset account
equation for a balance sheet
owners equity = assets - liabilities
How would an increase to an asset account be posted?
DEBIT
Assume that a deposit is due on Weds, but this is a non-banking day. to be
considered made timely, the employers deposit of federal payroll taxes
must be made on or before the close of business on:
a. tuesday
b. thursday
c. monday
d. friday
B. THURSDAY
a company is a monthly depositer for 2020. on payday, the company
accumulates a payroll tax liability of $101,000. the payroll tax deposits for
this liability must be made:
a. on or before the following wednesday
b. on or before the following friday
, c. by the next business day
d. by the 15th the following month
c. by the next buisness day
a company filed paper form W2 with the SSA on April 15. this action will
result in penalties of:
$110 per form W2
the statue of limitation for correcting a form 941 is:
a. due date of 941 form for quarter in which error was discovered
b. april 15 following the year error was discovered
c.. whenever discovered, up to 7 years
d. april 15 3 years after the close of tax year error was made
d. april 15, three years after the close of tax year error was made
which of the following records must be kept for 4 years:
a. OSHA records
b. time cards
c. voided payroll checks
d. hours worked
c. voided payroll checks
when a payroll department does not respond promptly to a penalty notice
from a governmental agency against an employee, this is an example of:
a. poor problem solving
b. breaching confidentiality
c. lack of compliance
d. responding to higher priorities
a. poor problem solving
