Payroll Accounting 2019, 5e (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
St
who perform identical tasks.
Answer: FALSE
Explanation: The Equal Pay Act of 1963 was the first legislation that addressed pay equity.
ud
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: Remember
AACSB: Reflective Thinking
yN
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
es
Explanation: ADEA protects workers who are older than age 40.
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: Remember
t
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
St
stakeholders.
Answer: FALSE
Explanation: The principle of due care pertains to the accountant's professional competence.
ud
Difficulty: 2 Medium
Topic: Discuss the Ethical Guidelines for Payroll Accounting
Learning Objective: 01-03 Discuss the Ethical Guidelines for Payroll Accounting
Bloom's: Apply
AACSB: Ethics
yN
Accessibility: Keyboard Navigation
7) Payroll accounting systems may involve an integrated software package that contains
business-planning tools.
Answer: TRUE
es
Difficulty: 1 Easy
Topic: Identify Contemporary Payroll Practices
Learning Objective: 01-04 Identify Contemporary Payroll Practices
Bloom's: Understand
AACSB: Technology
t
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
,9) The payroll volume tends to be greater for small companies than for large businesses.
Answer: FALSE
Explanation: Payroll volume is lower for small companies because the number of employees is
smaller, which leads to a lower number of payroll transaction.
Difficulty: 1 Easy
Topic: Compare Payroll Processing Options for Different Businesses
Learning Objective: 01-05 Compare Payroll Processing Options for Different Businesses
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
10) The use of outsourced payroll relieves employers of the responsibility for payroll accuracy.
Answer: FALSE
St
Explanation: The employer is responsible for payroll accuracy regardless of who processes it.
Difficulty: 2 Medium
Topic: Compare Payroll Processing Options for Different Businesses
Learning Objective: 01-05 Compare Payroll Processing Options for Different Businesses
ud
Bloom's: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
11) The Age Discrimination in Employment Act of 1967 prevented mandatory retirement for
yN
workers over the age of:
A) 55.
B) 50.
C) 45.
D) 40.
es
Answer: D
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
t
AACSB: Diversity
Accessibility: Keyboard Navigation
, 12) Which Act extended medical benefits for certain terminated employees?
A) ADEA
B) COBRA
C) OSHA
D) ERISA
Answer: B
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: Reflective Thinking
Accessibility: Keyboard Navigation
13) Within how many days after initially commencing work must an employer report a new
St
employee, according to PRWOR?
A) 7
B) 10
C) 20
ud
D) 30
Answer: C
Difficulty: 1 Easy
Topic: Identify Legislation That Pertains to Payroll and Business
yN
Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
Bloom's: Remember
AACSB: Communication
Accessibility: Keyboard Navigation
14) The Sarbanes-Oxley Act legislated penalties for violations of which Act?
es
A) HIPAA
B) ERISA
C) PRWOR
D) DOMA
t
Answer: B
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: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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
St
who perform identical tasks.
Answer: FALSE
Explanation: The Equal Pay Act of 1963 was the first legislation that addressed pay equity.
ud
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: Remember
AACSB: Reflective Thinking
yN
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
es
Explanation: ADEA protects workers who are older than age 40.
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: Remember
t
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
St
stakeholders.
Answer: FALSE
Explanation: The principle of due care pertains to the accountant's professional competence.
ud
Difficulty: 2 Medium
Topic: Discuss the Ethical Guidelines for Payroll Accounting
Learning Objective: 01-03 Discuss the Ethical Guidelines for Payroll Accounting
Bloom's: Apply
AACSB: Ethics
yN
Accessibility: Keyboard Navigation
7) Payroll accounting systems may involve an integrated software package that contains
business-planning tools.
Answer: TRUE
es
Difficulty: 1 Easy
Topic: Identify Contemporary Payroll Practices
Learning Objective: 01-04 Identify Contemporary Payroll Practices
Bloom's: Understand
AACSB: Technology
t
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
,9) The payroll volume tends to be greater for small companies than for large businesses.
Answer: FALSE
Explanation: Payroll volume is lower for small companies because the number of employees is
smaller, which leads to a lower number of payroll transaction.
Difficulty: 1 Easy
Topic: Compare Payroll Processing Options for Different Businesses
Learning Objective: 01-05 Compare Payroll Processing Options for Different Businesses
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
10) The use of outsourced payroll relieves employers of the responsibility for payroll accuracy.
Answer: FALSE
St
Explanation: The employer is responsible for payroll accuracy regardless of who processes it.
Difficulty: 2 Medium
Topic: Compare Payroll Processing Options for Different Businesses
Learning Objective: 01-05 Compare Payroll Processing Options for Different Businesses
ud
Bloom's: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
11) The Age Discrimination in Employment Act of 1967 prevented mandatory retirement for
yN
workers over the age of:
A) 55.
B) 50.
C) 45.
D) 40.
es
Answer: D
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
t
AACSB: Diversity
Accessibility: Keyboard Navigation
, 12) Which Act extended medical benefits for certain terminated employees?
A) ADEA
B) COBRA
C) OSHA
D) ERISA
Answer: B
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: Reflective Thinking
Accessibility: Keyboard Navigation
13) Within how many days after initially commencing work must an employer report a new
St
employee, according to PRWOR?
A) 7
B) 10
C) 20
ud
D) 30
Answer: C
Difficulty: 1 Easy
Topic: Identify Legislation That Pertains to Payroll and Business
yN
Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
Bloom's: Remember
AACSB: Communication
Accessibility: Keyboard Navigation
14) The Sarbanes-Oxley Act legislated penalties for violations of which Act?
es
A) HIPAA
B) ERISA
C) PRWOR
D) DOMA
t
Answer: B
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: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
