TEST BANK
Payroll Accounting 2024
Jeanette Landin
10th Edition
PR
O
FD
O
C
,Table of Contents
1. Payroll Practices and System Fundamentals
2. Payroll System Procedures
3. Gross Pay Computation
4. Fringe Benefits and Voluntary Deductions
5. Employee Net Pay and Pay Methods
6. Employer Payroll Taxes and Labor Planning
7. The Payroll Register, Employees’ Earnings Records, and Accounting System Entries
Appendices
A. Comprehensive Payroll Project: Wayland Custom Woodworking
B. Special Classes of Federal Tax Withholding
C. Federal Income Tax Tables
PR
D. State Income Tax Information
E. State Revenue Department or Labor Information
F. Payroll Certification Information
O
FD
O
C
,Payroll Accounting 2024, 10e (Landin)
Chapter 1 Payroll Practices and System Fundamentals
1) Internal payroll reports are used to inform a firm's managers and decision-makers about labor
costs.
Answer: TRUE
Difficulty: 1 Easy
Topic: Identify Legislation That Pertains to Payroll and Business
Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
Bloom's: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
2) The Lilly Ledbetter Act of 2009 was the first act that mandated equal pay for men and women
PR
who perform identical tasks.
Answer: FALSE
Explanation: The Equal Pay Act of 1963 was the first legislation that addressed pay equity.
Difficulty: 1 Easy
Topic: Identify Legislation That Pertains to Payroll and Business
O
Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
Bloom's: Remember
AACSB: Reflective Thinking
FD
Accessibility: Keyboard Navigation
3) The Age Discrimination in Employment Act (ADEA) prohibits discrimination in employment
practices for workers who are older than age 50.
Answer: FALSE
O
Explanation: ADEA protects workers who are older than age 40.
Difficulty: 1 Easy
Topic: Identify Legislation That Pertains to Payroll and Business
C
Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
Bloom's: Remember
AACSB: Diversity
Accessibility: Keyboard Navigation
4) Payroll-related legislation often reflects emerging issues in societal evolution.
Answer: TRUE
Difficulty: 2 Medium
Topic: Identify Legislation That Pertains to Payroll and Business
Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
Bloom's: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
, 5) The Worker's Compensation Act of 1935 legislated the payment of worker's compensation
insurance.
Answer: FALSE
Explanation: No federal legislation exists regarding the payment of worker's compensation
insurance.
Difficulty: 1 Easy
Topic: Discuss the Legal Framework Specific to Payroll Accounting
Learning Objective: 01-02 Discuss the Legal Framework Specific to Payroll Accounting
Bloom's: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
6) The ethical principle of due care pertains to the upholding of rights and justice of
PR
stakeholders.
Answer: FALSE
Explanation: The principle of due care pertains to the accountant's professional competence.
Difficulty: 2 Medium
Topic: Discuss the Ethical Guidelines for Payroll Accounting
O
Learning Objective: 01-03 Discuss the Ethical Guidelines for Payroll Accounting
Bloom's: Apply
AACSB: Ethics
FD
Accessibility: Keyboard Navigation
7) Payroll accounting systems may involve an integrated software package that contains
business-planning tools.
Answer: TRUE
O
Difficulty: 1 Easy
Topic: Identify Contemporary Payroll Practices
Learning Objective: 01-04 Identify Contemporary Payroll Practices
C
Bloom's: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
8) The IRS uses EINs to track employers for tax purposes.
Answer: TRUE
Difficulty: 1 Easy
Topic: Identify Contemporary Payroll Practices
Learning Objective: 01-04 Identify Contemporary Payroll Practices
Bloom's: Remember
AACSB: Communication
Accessibility: Keyboard Navigation
Payroll Accounting 2024
Jeanette Landin
10th Edition
PR
O
FD
O
C
,Table of Contents
1. Payroll Practices and System Fundamentals
2. Payroll System Procedures
3. Gross Pay Computation
4. Fringe Benefits and Voluntary Deductions
5. Employee Net Pay and Pay Methods
6. Employer Payroll Taxes and Labor Planning
7. The Payroll Register, Employees’ Earnings Records, and Accounting System Entries
Appendices
A. Comprehensive Payroll Project: Wayland Custom Woodworking
B. Special Classes of Federal Tax Withholding
C. Federal Income Tax Tables
PR
D. State Income Tax Information
E. State Revenue Department or Labor Information
F. Payroll Certification Information
O
FD
O
C
,Payroll Accounting 2024, 10e (Landin)
Chapter 1 Payroll Practices and System Fundamentals
1) Internal payroll reports are used to inform a firm's managers and decision-makers about labor
costs.
Answer: TRUE
Difficulty: 1 Easy
Topic: Identify Legislation That Pertains to Payroll and Business
Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
Bloom's: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
2) The Lilly Ledbetter Act of 2009 was the first act that mandated equal pay for men and women
PR
who perform identical tasks.
Answer: FALSE
Explanation: The Equal Pay Act of 1963 was the first legislation that addressed pay equity.
Difficulty: 1 Easy
Topic: Identify Legislation That Pertains to Payroll and Business
O
Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
Bloom's: Remember
AACSB: Reflective Thinking
FD
Accessibility: Keyboard Navigation
3) The Age Discrimination in Employment Act (ADEA) prohibits discrimination in employment
practices for workers who are older than age 50.
Answer: FALSE
O
Explanation: ADEA protects workers who are older than age 40.
Difficulty: 1 Easy
Topic: Identify Legislation That Pertains to Payroll and Business
C
Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
Bloom's: Remember
AACSB: Diversity
Accessibility: Keyboard Navigation
4) Payroll-related legislation often reflects emerging issues in societal evolution.
Answer: TRUE
Difficulty: 2 Medium
Topic: Identify Legislation That Pertains to Payroll and Business
Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
Bloom's: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
, 5) The Worker's Compensation Act of 1935 legislated the payment of worker's compensation
insurance.
Answer: FALSE
Explanation: No federal legislation exists regarding the payment of worker's compensation
insurance.
Difficulty: 1 Easy
Topic: Discuss the Legal Framework Specific to Payroll Accounting
Learning Objective: 01-02 Discuss the Legal Framework Specific to Payroll Accounting
Bloom's: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
6) The ethical principle of due care pertains to the upholding of rights and justice of
PR
stakeholders.
Answer: FALSE
Explanation: The principle of due care pertains to the accountant's professional competence.
Difficulty: 2 Medium
Topic: Discuss the Ethical Guidelines for Payroll Accounting
O
Learning Objective: 01-03 Discuss the Ethical Guidelines for Payroll Accounting
Bloom's: Apply
AACSB: Ethics
FD
Accessibility: Keyboard Navigation
7) Payroll accounting systems may involve an integrated software package that contains
business-planning tools.
Answer: TRUE
O
Difficulty: 1 Easy
Topic: Identify Contemporary Payroll Practices
Learning Objective: 01-04 Identify Contemporary Payroll Practices
C
Bloom's: Understand
AACSB: Technology
Accessibility: Keyboard Navigation
8) The IRS uses EINs to track employers for tax purposes.
Answer: TRUE
Difficulty: 1 Easy
Topic: Identify Contemporary Payroll Practices
Learning Objective: 01-04 Identify Contemporary Payroll Practices
Bloom's: Remember
AACSB: Communication
Accessibility: Keyboard Navigation
