The Payroll Source CPP Practice Exam
Which of the following features 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 answersd. 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 answersa. timely processing of the payroll
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 answersa. identify root causes and take
actions to prevent similar recurrences
With regard to EEs' reported tips, the ER must:
a. withhold and pay only the EEs' portion of FICA taxes on tips
b. report tax on tips separately when making an employment tax deposit
c. report tips as wages on Form W-2 and pay the ER portion of FICA taxes
d. report and pay the ER portion of FICA taxes on the portion of cash tips above the federal minimum
wage correct answersc. report tips as wages on Form W-2 and pay the ER portion of FICA taxes
,Transactions are recorded in chronological order into books of original entry called:
a. registers
b. vouchers
c. invoices
d. journals correct answersd. journals
The KEY advantage of using an automated time and attendance system is that it:
a. identifies phantom EEs
b. reduces errors
c. interfaces with the payroll system
d. frees supervisors from having to review hours correct answersb. 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 answersd. 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 answersa. payroll forms
All of the following data elements are required to be maintained in the EE masterfile EXCEPT:
a. SSN
b. DOB
, c. marital status
d. hourly rate of pay correct answersc. 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 answersc. 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 answersb. double-entry accounting
A company pays all executives semimonthly. The FLSA requires all other EEs to be paid on:
a. a weekly cycle
b. a biweekly cycle
c. a semimonthly cycle
d. any established cycle correct answersd. any established cycle
Which of the following answers BEST defines the term nonexempt under the FLSA?
a. a lower-paid class of EEs
b. hourly-paid workers only
c. EEs who must be paid OT
d. a special class of EEs as determined by the ER correct answersc. EEs who must be paid OT
For how many years must the ER's copy of Form 940 be retained?
a. 2
Which of the following features 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 answersd. 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 answersa. timely processing of the payroll
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 answersa. identify root causes and take
actions to prevent similar recurrences
With regard to EEs' reported tips, the ER must:
a. withhold and pay only the EEs' portion of FICA taxes on tips
b. report tax on tips separately when making an employment tax deposit
c. report tips as wages on Form W-2 and pay the ER portion of FICA taxes
d. report and pay the ER portion of FICA taxes on the portion of cash tips above the federal minimum
wage correct answersc. report tips as wages on Form W-2 and pay the ER portion of FICA taxes
,Transactions are recorded in chronological order into books of original entry called:
a. registers
b. vouchers
c. invoices
d. journals correct answersd. journals
The KEY advantage of using an automated time and attendance system is that it:
a. identifies phantom EEs
b. reduces errors
c. interfaces with the payroll system
d. frees supervisors from having to review hours correct answersb. 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 answersd. 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 answersa. payroll forms
All of the following data elements are required to be maintained in the EE masterfile EXCEPT:
a. SSN
b. DOB
, c. marital status
d. hourly rate of pay correct answersc. 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 answersc. 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 answersb. double-entry accounting
A company pays all executives semimonthly. The FLSA requires all other EEs to be paid on:
a. a weekly cycle
b. a biweekly cycle
c. a semimonthly cycle
d. any established cycle correct answersd. any established cycle
Which of the following answers BEST defines the term nonexempt under the FLSA?
a. a lower-paid class of EEs
b. hourly-paid workers only
c. EEs who must be paid OT
d. a special class of EEs as determined by the ER correct answersc. EEs who must be paid OT
For how many years must the ER's copy of Form 940 be retained?
a. 2
