ACCT 3310 Exam 2 (2025) Actual Exam
Questions and Answers A+ Graded
Conceptual .Payroll .System: .
-Personnel .dept. .(human .resources) .uses .personnel .action .forms .to: .-
.CORRECT .ANSWER--activate .new .employees
-change .the .pay .rate .of .employees
-change .marital .status .and/or .number .of .dependents
-terminate .employees
*many .companies .may .outsource .payroll .functions
-initiated .by .HR .(personnel), .processed .by .payroll .dept. .(separation .of .duties)
-all .relates .to .COSO .framework, .especially .Control .Environment-hiring .qualified
.employees, .training .them .well, .establishing .tone .at .the .top.
Conceptual .Payroll .System:
-Production .employees .fill .out .two .forms: .- .CORRECT .ANSWER--job .tickets
-time .cards .(not .all .employees .have .time .cards. .ex: .salaried .employees .with .a
.base .salary).
job .tickets .- .CORRECT .ANSWER-Account .for .the .time .spent .by .the .worker .on
.each .production .job .(used .by .cost .accounting)
time .cards .- .CORRECT .ANSWER-Used .to .capture .the .total .time .worked .each
.pay .period .for .calculations. .Must .be .signed .by .a .supervisor .(typically .signed
.by .a .manager).
Conceptual .Payroll .System:
,-Payroll .dept. .receives .personnel .action .forms .and .time .cards. .
-Uses .them .to: .- .CORRECT .ANSWER--prepare .the .payroll .register
-enter .the .information .into .the .employee .payroll .records
-prepare .paychecks
-send .paychecks .to .Cash .Disbursements
Conceptual .Payroll .System:
-Cash .Disbursements .dept: .- .CORRECT .ANSWER--reviews .and .signs .the
.paychecks .and .forwards .them .to .a .paymaster .for .distribution .to .the .employees
.(typically .use .an .independent .person .to .disburse .checks)
-writes .a .check .for .the .payroll .and .deposits .it .into .the .payroll .imprest .account
imprest .payroll .account .- .CORRECT .ANSWER-An .account .set .up .just .for
.payroll .accounts, .separate .from .main .account.
Two .Primary .Subcycles .- .CORRECT .ANSWER--Receipt .and .payment .of
.employee .services
-Payroll .accruals
Payroll .subcycle .documents: .- .CORRECT .ANSWER--Hire .employees-personnel
.record .(action .form), .deduction .authorization .form .(W-4)(withholdings .based .on
.tables .of .IFRS; .when .hired .you .fill .out .a .W-4 .form, .and .you .give .them .info
.about .your .lifestyle .so .they .know .how .much .to .deduct .for .taxes).
-Receive .employee .services-time .cards, .job .tickets
-Pay .for .employee .services-checks
Calculating .payrolls:
Payroll .Deductions
Taxes: .- .CORRECT .ANSWER--Social .Security .Taxes
-Income .Tax .Withholding
, Taxes .Employee .Pays: .- .CORRECT .ANSWER--Income .Tax .Withholding
-FICA .Taxes-employee .share
-Union .dues
*Employer .reports .these .amounts .as .liabilities .until .remitted
Taxes .Employer .Pays: .- .CORRECT .ANSWER--FICA .taxes-employer .share
-Federal .unemployment
-State .unemployment
*Employer .reports .these .amounts .as .liabilities .until .remitted
*The .biggest .one .besides .income .tax .withholding .is .FICA
Payroll .calculation:
Assume .a .weekly .payroll .of .$10,000 .entirely .subject .to .F.I.C.A. .and .Medicare
.(7.65%), .federal .(0.8%) .and .state .(4%) .unemployment .taxes, .with .income .tax
.withholding .of .$1,320 .and .union .dues .of .$88 .deducted. .The .company .records
.the .salaries .and .wages .paid .and .the .employee .payroll .deductions .as .follows: .-
.CORRECT .ANSWER-Wages .and .salaries .expense .10,000
.Withholding .taxes .payable .1,320
.FICA .taxes .payable .765
.Union .dues .payable .88
.Cash .7,827
*When .you .pay .Social .Security .and .Medicare .of .7.65%, .your .employer .must
.also .match .that .7.65%
*If .this .was .an .accruing .entry .at .the .end .of .the .year, .cash .would .be .wages .and
.salaries .payable .instead.
Payroll .calculation:
Assume .a .weekly .payroll .of .$10,000 .entirely .subject .to .F.I.C.A. .and .Medicare
.(7.65%), .federal .(0.8%) .and .state .(4%) .unemployment .taxes, .with .income .tax
Questions and Answers A+ Graded
Conceptual .Payroll .System: .
-Personnel .dept. .(human .resources) .uses .personnel .action .forms .to: .-
.CORRECT .ANSWER--activate .new .employees
-change .the .pay .rate .of .employees
-change .marital .status .and/or .number .of .dependents
-terminate .employees
*many .companies .may .outsource .payroll .functions
-initiated .by .HR .(personnel), .processed .by .payroll .dept. .(separation .of .duties)
-all .relates .to .COSO .framework, .especially .Control .Environment-hiring .qualified
.employees, .training .them .well, .establishing .tone .at .the .top.
Conceptual .Payroll .System:
-Production .employees .fill .out .two .forms: .- .CORRECT .ANSWER--job .tickets
-time .cards .(not .all .employees .have .time .cards. .ex: .salaried .employees .with .a
.base .salary).
job .tickets .- .CORRECT .ANSWER-Account .for .the .time .spent .by .the .worker .on
.each .production .job .(used .by .cost .accounting)
time .cards .- .CORRECT .ANSWER-Used .to .capture .the .total .time .worked .each
.pay .period .for .calculations. .Must .be .signed .by .a .supervisor .(typically .signed
.by .a .manager).
Conceptual .Payroll .System:
,-Payroll .dept. .receives .personnel .action .forms .and .time .cards. .
-Uses .them .to: .- .CORRECT .ANSWER--prepare .the .payroll .register
-enter .the .information .into .the .employee .payroll .records
-prepare .paychecks
-send .paychecks .to .Cash .Disbursements
Conceptual .Payroll .System:
-Cash .Disbursements .dept: .- .CORRECT .ANSWER--reviews .and .signs .the
.paychecks .and .forwards .them .to .a .paymaster .for .distribution .to .the .employees
.(typically .use .an .independent .person .to .disburse .checks)
-writes .a .check .for .the .payroll .and .deposits .it .into .the .payroll .imprest .account
imprest .payroll .account .- .CORRECT .ANSWER-An .account .set .up .just .for
.payroll .accounts, .separate .from .main .account.
Two .Primary .Subcycles .- .CORRECT .ANSWER--Receipt .and .payment .of
.employee .services
-Payroll .accruals
Payroll .subcycle .documents: .- .CORRECT .ANSWER--Hire .employees-personnel
.record .(action .form), .deduction .authorization .form .(W-4)(withholdings .based .on
.tables .of .IFRS; .when .hired .you .fill .out .a .W-4 .form, .and .you .give .them .info
.about .your .lifestyle .so .they .know .how .much .to .deduct .for .taxes).
-Receive .employee .services-time .cards, .job .tickets
-Pay .for .employee .services-checks
Calculating .payrolls:
Payroll .Deductions
Taxes: .- .CORRECT .ANSWER--Social .Security .Taxes
-Income .Tax .Withholding
, Taxes .Employee .Pays: .- .CORRECT .ANSWER--Income .Tax .Withholding
-FICA .Taxes-employee .share
-Union .dues
*Employer .reports .these .amounts .as .liabilities .until .remitted
Taxes .Employer .Pays: .- .CORRECT .ANSWER--FICA .taxes-employer .share
-Federal .unemployment
-State .unemployment
*Employer .reports .these .amounts .as .liabilities .until .remitted
*The .biggest .one .besides .income .tax .withholding .is .FICA
Payroll .calculation:
Assume .a .weekly .payroll .of .$10,000 .entirely .subject .to .F.I.C.A. .and .Medicare
.(7.65%), .federal .(0.8%) .and .state .(4%) .unemployment .taxes, .with .income .tax
.withholding .of .$1,320 .and .union .dues .of .$88 .deducted. .The .company .records
.the .salaries .and .wages .paid .and .the .employee .payroll .deductions .as .follows: .-
.CORRECT .ANSWER-Wages .and .salaries .expense .10,000
.Withholding .taxes .payable .1,320
.FICA .taxes .payable .765
.Union .dues .payable .88
.Cash .7,827
*When .you .pay .Social .Security .and .Medicare .of .7.65%, .your .employer .must
.also .match .that .7.65%
*If .this .was .an .accruing .entry .at .the .end .of .the .year, .cash .would .be .wages .and
.salaries .payable .instead.
Payroll .calculation:
Assume .a .weekly .payroll .of .$10,000 .entirely .subject .to .F.I.C.A. .and .Medicare
.(7.65%), .federal .(0.8%) .and .state .(4%) .unemployment .taxes, .with .income .tax
