ACCT 160 Chapter 03 Study Guide
Questions and Answers 100% Pass
Nonexempt employees are usually workers who:
A) Routinely supervise other employees.
B) Are exempt from certain company rules.
C) Occupy executive positions in the company.
D) Perform operative level tasks. - ✔✔D) Perform operative level tasks.
The difference between the federal minimum wage and the tipped wage involves:
A) The type of work the employee performs.
B) An employee's qualifications for the job.
C) The size of the town in which the employer is located.
D) Supervisory reviews about the employee's performance. - ✔✔A) The type of work
the employee performs.
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,Which of the following is always true about tipped employees?
A) The minimum wage for tipped employees is consistent among all states.
B) They have the opportunity to earn tips from patrons as a regular part of their job.
C) They only earn occasional tips from other employees.
D) They must earn more than 50% of their income from tips. - ✔✔B) They have the
opportunity to earn tips from patrons as a regular part of their job.
Vincent is a tipped employee who earns a wage of $2.13 per hour in a tip-credit state
and works a standard 40-hour workweek. Last week he earned $60 in tips. Which of the
following is true?
A) Vincent does not have to report his tips for the week because they were less than
$75.
B) Vincent's employer may not report his tips for income tax purposes.
C) Vincent's employer must pay him the tip credit because his wages and tips for the
week were less than the federal minimum wage.
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,D) Vincent must file a request with his employer to have the tip credit applied to his
wages for the week. - ✔✔C) Vincent's employer must pay him the tip credit because his
wages and tips for the week were less than the federal minimum wage.
Cole is a minimum wage employee in Santa Fe, NM where the minimum wage is $11.80
per hour. His employer claims that since the federal minimum wage is $7.25 per hour
Cole should only receive the federal amount. What is the correct answer in this
situation?
A) The employer has the discretion to pay either the federal or the state-designated
minimum wage.
B) The employer may choose to pay less than the state-designated minimum wage
based on the employee's qualifications and job description.
C) The employer is correct that the federal minimum wage overrules the state wage.
D) The employer must pay the state-designated minimum wage for the area. - ✔✔D)
The employer must pay the state-designated minimum wage for the area.
Paloma is a 16-year-old who babysits for a local family on an occasional basis. During a
calendar year she earned $1,250 in babysitting wages. What is true about Paloma's
wages?
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, A) The family must treat her as a domestic employee and abide by FLSA regulations.
B) Paloma does not earn enough to be considered a domestic employee so FLSA rules
do not apply.
C) Paloma is not considered an employee, but certain FLSA provisions apply.
D) Since the family conducts no interstate commerce, FLSA provisions cannot apply. -
✔✔B) Paloma does not earn enough to be considered a domestic employee so FLSA
rules do not apply.
The minimum wage for salaried employees is:
A) $455/week.
B) $523/week.
C) $596/week.
D) $684/week. - ✔✔D) $684/week.
Sahar earns a salary of $31,500 per year as a nonexempt employee with a 35-hour
standard workweek. What is her hourly rate? (Round to the nearest cent.)
A) $15.82 per hour
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Questions and Answers 100% Pass
Nonexempt employees are usually workers who:
A) Routinely supervise other employees.
B) Are exempt from certain company rules.
C) Occupy executive positions in the company.
D) Perform operative level tasks. - ✔✔D) Perform operative level tasks.
The difference between the federal minimum wage and the tipped wage involves:
A) The type of work the employee performs.
B) An employee's qualifications for the job.
C) The size of the town in which the employer is located.
D) Supervisory reviews about the employee's performance. - ✔✔A) The type of work
the employee performs.
Katelyn Whitman, All Rights Reserved © 2025 1
,Which of the following is always true about tipped employees?
A) The minimum wage for tipped employees is consistent among all states.
B) They have the opportunity to earn tips from patrons as a regular part of their job.
C) They only earn occasional tips from other employees.
D) They must earn more than 50% of their income from tips. - ✔✔B) They have the
opportunity to earn tips from patrons as a regular part of their job.
Vincent is a tipped employee who earns a wage of $2.13 per hour in a tip-credit state
and works a standard 40-hour workweek. Last week he earned $60 in tips. Which of the
following is true?
A) Vincent does not have to report his tips for the week because they were less than
$75.
B) Vincent's employer may not report his tips for income tax purposes.
C) Vincent's employer must pay him the tip credit because his wages and tips for the
week were less than the federal minimum wage.
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,D) Vincent must file a request with his employer to have the tip credit applied to his
wages for the week. - ✔✔C) Vincent's employer must pay him the tip credit because his
wages and tips for the week were less than the federal minimum wage.
Cole is a minimum wage employee in Santa Fe, NM where the minimum wage is $11.80
per hour. His employer claims that since the federal minimum wage is $7.25 per hour
Cole should only receive the federal amount. What is the correct answer in this
situation?
A) The employer has the discretion to pay either the federal or the state-designated
minimum wage.
B) The employer may choose to pay less than the state-designated minimum wage
based on the employee's qualifications and job description.
C) The employer is correct that the federal minimum wage overrules the state wage.
D) The employer must pay the state-designated minimum wage for the area. - ✔✔D)
The employer must pay the state-designated minimum wage for the area.
Paloma is a 16-year-old who babysits for a local family on an occasional basis. During a
calendar year she earned $1,250 in babysitting wages. What is true about Paloma's
wages?
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, A) The family must treat her as a domestic employee and abide by FLSA regulations.
B) Paloma does not earn enough to be considered a domestic employee so FLSA rules
do not apply.
C) Paloma is not considered an employee, but certain FLSA provisions apply.
D) Since the family conducts no interstate commerce, FLSA provisions cannot apply. -
✔✔B) Paloma does not earn enough to be considered a domestic employee so FLSA
rules do not apply.
The minimum wage for salaried employees is:
A) $455/week.
B) $523/week.
C) $596/week.
D) $684/week. - ✔✔D) $684/week.
Sahar earns a salary of $31,500 per year as a nonexempt employee with a 35-hour
standard workweek. What is her hourly rate? (Round to the nearest cent.)
A) $15.82 per hour
Katelyn Whitman, All Rights Reserved © 2025 4
