CPP EXAM Q&A
Which of the following items represents an input interface to the payroll system?
a. general ledger
b. time and attendance
c. benefit payments
d. material usage records - ANSWER-time and attendance
One reason many companies use a Zero Balance Checking Account is that:
a. cash is available for investment until items are presented for payment at the
company's bank
b. funds do not have to be deposited until the employee cashes the check
c. the company receives interest on the account
d. bank reconciliations are not required - ANSWER-cash is available for investment
until items are presented for payment at the company's bank
Each of the following items qualifies as a de minimis fringe benefit EXCEPT:
a. occasional parties and picnics for employees
b. occasional supper money for working overtime
c. traditional holiday gifts, such as food items
d. group legal services worth less than $100 annually - ANSWER-group legal
services worth less than $100 annually
All of the following steps are required when initiating direct deposit for an employee
EXCEPT:
a. prenotification
b. receiving financial institution routing number
c. getting authorization from the employee
d. receiving employee's bank account number - ANSWER-prenotification
In a customer service situation, Payroll should:
a. assure the caller everything is okay, even when it is not
b. get in the last word avoid addressing stressful issues
d. remain assertive and stay focused - ANSWER-remain assertive and stay focused
Which of the following plans describes a cafeteria plan under section 125 of the
Internal Revenue Code?
a. a quantified and accountable expense reimbursement plan
b. tax-qualified retirement plan for public educational institutions
c. a plan which permits employees to select from two or more qualified taxable and
nontaxable benefits
d. plan whereby state government employees may request that pretax dollars be set
aside in a re-tirement account until age 59 - ANSWER-plan which permits
employees to select from two or more qualified taxable and nontaxable benefits
Which of the following items determines the disposition of unclaimed wages?
a. state law only
b. federal law only
, c. federal and state law
d. no recognized procedure exists - ANSWER-state law only
What does it mean if, at the end of an accounting period, a company has a debit
balance in a liability account?
a. The company has underdeposited taxes withheld from employee wages. b. The
company has not yet paid the third party.
c. The company has withheld too much from the employee.
d. The company has paid to a third party more than was withheld from the employee.
- ANSWER-The company has paid to a third party more than was withheld from the
employee.
All of the following factors are advantages of having an in-house developed
payroll/HR system EXCEPT:
a. scheduling flexibility
b. user groups
c. security
d. control of the system - ANSWER-user groups
A payroll department manager should assure:
a. an independent mission statement
b. appropriate training and equipment resources for staff members
c. immediate enactment of employee suggestions
d. top payment of staff - ANSWER-appropriate training and equipment resources for
staff members
A report has been requested that is NOT a standard report from the system. This
type of report is called a(n):
a. ad-hoc report
b. integrated report
c. batch system report
d. edit report - ANSWER-ad-hoc report
A procedure to have a time record signed by an employee indicates:
a. authorization for payment
b. confirmation of total hours
c. hours cannot be challenged
d. time spent at the establishment - ANSWER-confirmation of total hours
For an employee earning $10.20 per hour and participating in a 401(k) plan with a
deferral per pay period of $50, compute the federal income taxable wages based on
the following:
Biweekly pay period
Regular 80 hours
4 hours overtime
3 hours double-time
a. $731.40
b. $888.40
c. $898.60
d. $938.40 - ANSWER-$888.40
Which of the following items represents an input interface to the payroll system?
a. general ledger
b. time and attendance
c. benefit payments
d. material usage records - ANSWER-time and attendance
One reason many companies use a Zero Balance Checking Account is that:
a. cash is available for investment until items are presented for payment at the
company's bank
b. funds do not have to be deposited until the employee cashes the check
c. the company receives interest on the account
d. bank reconciliations are not required - ANSWER-cash is available for investment
until items are presented for payment at the company's bank
Each of the following items qualifies as a de minimis fringe benefit EXCEPT:
a. occasional parties and picnics for employees
b. occasional supper money for working overtime
c. traditional holiday gifts, such as food items
d. group legal services worth less than $100 annually - ANSWER-group legal
services worth less than $100 annually
All of the following steps are required when initiating direct deposit for an employee
EXCEPT:
a. prenotification
b. receiving financial institution routing number
c. getting authorization from the employee
d. receiving employee's bank account number - ANSWER-prenotification
In a customer service situation, Payroll should:
a. assure the caller everything is okay, even when it is not
b. get in the last word avoid addressing stressful issues
d. remain assertive and stay focused - ANSWER-remain assertive and stay focused
Which of the following plans describes a cafeteria plan under section 125 of the
Internal Revenue Code?
a. a quantified and accountable expense reimbursement plan
b. tax-qualified retirement plan for public educational institutions
c. a plan which permits employees to select from two or more qualified taxable and
nontaxable benefits
d. plan whereby state government employees may request that pretax dollars be set
aside in a re-tirement account until age 59 - ANSWER-plan which permits
employees to select from two or more qualified taxable and nontaxable benefits
Which of the following items determines the disposition of unclaimed wages?
a. state law only
b. federal law only
, c. federal and state law
d. no recognized procedure exists - ANSWER-state law only
What does it mean if, at the end of an accounting period, a company has a debit
balance in a liability account?
a. The company has underdeposited taxes withheld from employee wages. b. The
company has not yet paid the third party.
c. The company has withheld too much from the employee.
d. The company has paid to a third party more than was withheld from the employee.
- ANSWER-The company has paid to a third party more than was withheld from the
employee.
All of the following factors are advantages of having an in-house developed
payroll/HR system EXCEPT:
a. scheduling flexibility
b. user groups
c. security
d. control of the system - ANSWER-user groups
A payroll department manager should assure:
a. an independent mission statement
b. appropriate training and equipment resources for staff members
c. immediate enactment of employee suggestions
d. top payment of staff - ANSWER-appropriate training and equipment resources for
staff members
A report has been requested that is NOT a standard report from the system. This
type of report is called a(n):
a. ad-hoc report
b. integrated report
c. batch system report
d. edit report - ANSWER-ad-hoc report
A procedure to have a time record signed by an employee indicates:
a. authorization for payment
b. confirmation of total hours
c. hours cannot be challenged
d. time spent at the establishment - ANSWER-confirmation of total hours
For an employee earning $10.20 per hour and participating in a 401(k) plan with a
deferral per pay period of $50, compute the federal income taxable wages based on
the following:
Biweekly pay period
Regular 80 hours
4 hours overtime
3 hours double-time
a. $731.40
b. $888.40
c. $898.60
d. $938.40 - ANSWER-$888.40
