1
The Payroll Source CPP Practice Exam Questions
Which of the following is LEAST likely to be considered when looking at
the security of a new payroll system?
A. regular data back-up and storage
B. protection against computer viruses
C. limited system access
D. system edits - Correct Answer-D. system edits
Company deadlines for payroll data input documents are essential for:
A. timely processing of the payroll
B. accurate entry of data
C. guaranteeing that all information is processed
D. adequate auditing purposes - Correct Answer-A. timely processing of
the payroll
An employee earns $9 per hour and an additional 10 cents per hour for
hours worked after 7:00 p.m. If an employee works from 2:00p.m. to
11:00p.m., with an unpaid meal break from 6:00 p.m. to 7:00p.m.,
Monday through Friday, what is the employee's weekly gross pay under
the Fair Labor Standards Act?
A. $360
B. $361
C. $362
D. $364 - Correct Answer-C. $362 (40x$9) +(20x$.10) =$362
1
, 2
The BEST reason for tracking pay-related problem statistics is to enable
Payroll to:
A. identify root causes and take actions to prevent similar recurrences
B. apologize to clients in a more professional manner
C. direct problems to those who caused the problem
D. justify more resources to handle more problems - Correct Answer-A.
identify rout caused and take actions to prevent similar recurrences
With regard to employees' reported tips, the employer must:
A. withhold and pay only the employees' portion of social security and
Medicare taxes on tips
B. report taxes on tips separately when making an employment tax
deposit
C. report tips as wages on Form W-2 and pay the employer portion of
social security and Medicare taxes
D. report and pay the employer portion of social security and Medicare
taxes on the portion of cash tips above the federal minimum wage -
Correct Answer-C. report tips as wages on Form W-2 and pay the
employer portion of social security and Medicare taxes
Transactions are recorded in chronological order into books of original
entry called:
A. registers
B. vouchers
C. invoices
D. journals - Correct Answer-D. journals
The KEY advantage of using an automated time and attendance system
is that it:
2
, 3
A. identifies phantom employees
B. reduces errors
C. interfaces with the payroll system
D. frees supervisors from having to review hours - Correct Answer-B
reduces errors
As part of the implementation of a new payroll system, all transactions
from the most recent actual payroll are processed in the new system
prior to using the system to run payrolls. This is an example of what type
of testing?
A. compliance
B. back-up
C. ongoing
D. parallel - Correct Answer-D. parallel
To exhibit good customer service skills, payroll staff must understand
and be able to explain:
A. payroll forms
B. benefits enrollment techniques
C. systems design decisions
D. strategic departmental direction - Correct Answer-A. payroll forms
Under FLSA, what is the compensation due an employee whose rate of
pay is $8 per hour and who is paid for 52 hours during one workweek,
including 8 hours of sick pay?
A. $416
B. $432
C. $448
3
, 4
D. $464 - Correct Answer-B. $432 (52 x $8) + ($8x.5x4) = $432
All of the following data elements are required to be maintained in the
employee Masterfile EXCEPT:
A. social security number
B. birth date
C. marital status
D. hourly rate of pay - Correct Answer-C. marital status
Upward communication involves:
A. dissemination of management decisions to the staff
B. interactions between you and your manager
C. passing information to management
D. conducting quality circle meetings - Correct Answer-C. passing
information to management
The fact that transactions affect two separate accounts of a business is
called:
A. compound-entry accounting
B. double-entry accounting
C. accrual accounting
D. T-accounting - Correct Answer-B. double-entry accounting
A company pays all executives semimonthly. The FLSA requires all other
employees to be paid on:
A. a weekly cycle
B. a biweekly cycle
4
The Payroll Source CPP Practice Exam Questions
Which of the following is LEAST likely to be considered when looking at
the security of a new payroll system?
A. regular data back-up and storage
B. protection against computer viruses
C. limited system access
D. system edits - Correct Answer-D. system edits
Company deadlines for payroll data input documents are essential for:
A. timely processing of the payroll
B. accurate entry of data
C. guaranteeing that all information is processed
D. adequate auditing purposes - Correct Answer-A. timely processing of
the payroll
An employee earns $9 per hour and an additional 10 cents per hour for
hours worked after 7:00 p.m. If an employee works from 2:00p.m. to
11:00p.m., with an unpaid meal break from 6:00 p.m. to 7:00p.m.,
Monday through Friday, what is the employee's weekly gross pay under
the Fair Labor Standards Act?
A. $360
B. $361
C. $362
D. $364 - Correct Answer-C. $362 (40x$9) +(20x$.10) =$362
1
, 2
The BEST reason for tracking pay-related problem statistics is to enable
Payroll to:
A. identify root causes and take actions to prevent similar recurrences
B. apologize to clients in a more professional manner
C. direct problems to those who caused the problem
D. justify more resources to handle more problems - Correct Answer-A.
identify rout caused and take actions to prevent similar recurrences
With regard to employees' reported tips, the employer must:
A. withhold and pay only the employees' portion of social security and
Medicare taxes on tips
B. report taxes on tips separately when making an employment tax
deposit
C. report tips as wages on Form W-2 and pay the employer portion of
social security and Medicare taxes
D. report and pay the employer portion of social security and Medicare
taxes on the portion of cash tips above the federal minimum wage -
Correct Answer-C. report tips as wages on Form W-2 and pay the
employer portion of social security and Medicare taxes
Transactions are recorded in chronological order into books of original
entry called:
A. registers
B. vouchers
C. invoices
D. journals - Correct Answer-D. journals
The KEY advantage of using an automated time and attendance system
is that it:
2
, 3
A. identifies phantom employees
B. reduces errors
C. interfaces with the payroll system
D. frees supervisors from having to review hours - Correct Answer-B
reduces errors
As part of the implementation of a new payroll system, all transactions
from the most recent actual payroll are processed in the new system
prior to using the system to run payrolls. This is an example of what type
of testing?
A. compliance
B. back-up
C. ongoing
D. parallel - Correct Answer-D. parallel
To exhibit good customer service skills, payroll staff must understand
and be able to explain:
A. payroll forms
B. benefits enrollment techniques
C. systems design decisions
D. strategic departmental direction - Correct Answer-A. payroll forms
Under FLSA, what is the compensation due an employee whose rate of
pay is $8 per hour and who is paid for 52 hours during one workweek,
including 8 hours of sick pay?
A. $416
B. $432
C. $448
3
, 4
D. $464 - Correct Answer-B. $432 (52 x $8) + ($8x.5x4) = $432
All of the following data elements are required to be maintained in the
employee Masterfile EXCEPT:
A. social security number
B. birth date
C. marital status
D. hourly rate of pay - Correct Answer-C. marital status
Upward communication involves:
A. dissemination of management decisions to the staff
B. interactions between you and your manager
C. passing information to management
D. conducting quality circle meetings - Correct Answer-C. passing
information to management
The fact that transactions affect two separate accounts of a business is
called:
A. compound-entry accounting
B. double-entry accounting
C. accrual accounting
D. T-accounting - Correct Answer-B. double-entry accounting
A company pays all executives semimonthly. The FLSA requires all other
employees to be paid on:
A. a weekly cycle
B. a biweekly cycle
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