Payroll Accounting 2019 – 5th Edition by Jeanette Landin & Paulette Schirmer – Complete Test Bank for Chapters 1–7

,Payroll Accounting 2019, 5e (Landin)
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Chapter 1 Payroll Practices and System Fundamentals
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1) Internal payroll reports are used to inform a firm's managers and decision-makers about labor
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costs.
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Answer: TRUE i v



Difficulty: 1 Easy
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Topic: Identify Legislation That Pertains to Payroll and Business
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Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
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Bloom's: Understand
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AACSB: Communication i v



Accessibility: Keyboard
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Navigation
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2) The Lilly Ledbetter Act of 2009 was the first act that mandated equal pay for men and women
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who perform identical tasks.
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Answer: FALSE i v



Explanation: The Equal Pay Act of 1963 was the first legislation that addressed pay equity.
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Difficulty: 1 Easy
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Topic: Identify Legislation That Pertains to Payroll and Business
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Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
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Bloom's: Remember
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AACSB: Reflective Thinkingi v iv



Accessibility: Keyboard
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Navigation
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3) The Age Discrimination in Employment Act (ADEA) prohibits discrimination in employment
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practices for workers who are older than age 50.
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Answer: FALSE i v



Explanation: ADEA protects workers who are older than age 40.
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Difficulty: 1 Easy
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Topic: Identify Legislation That Pertains to Payroll and Business
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Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
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Bloom's: Remember
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AACSB: Diversity i v



Accessibility: Keyboard Navigation i v iv




4) Payroll-related legislation often reflects emerging issues in societal evolution.
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Answer: TRUE i v



Difficulty: 2 Medium
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Topic: Identify Legislation That Pertains to Payroll and Business
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Learning Objective: 01-01 Identify Legislation That Pertains to Payroll and Business
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Bloom's: Analyze
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1
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,AACSB: Reflective Thinking
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Accessibility: Keyboard
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Navigation
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2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
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No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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, 5) The Worker's Compensation Act of 1935 legislated the payment of worker's compensation
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insurance.
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Answer: FALSE i v



Explanation: No federal legislation exists regarding the payment of worker's compensation
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insurance.
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Difficulty: 1 Easy iv iv



Topic: Discuss the Legal Framework Specific to Payroll Accounting
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Learning Objective: 01-02 Discuss the Legal Framework Specific to Payroll Accounting
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Bloom's: Understand
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AACSB: Communication i v



Accessibility: Keyboard
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Navigation
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6) The ethical principle of due care pertains to the upholding of rights and justice of
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stakeholders.
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Answer: FALSE i v



Explanation: The principle of due care pertains to the accountant's professional competence.
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Difficulty: 2 Medium
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Topic: Discuss the Ethical Guidelines for Payroll Accounting
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Learning Objective: 01-03 Discuss the Ethical Guidelines for Payroll Accounting
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Bloom's: Apply
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AACSB: Ethics i v



Accessibility: Keyboard Navigation i v iv




7) Payroll accounting systems may involve an integrated software package that contains
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business-planning tools.
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Answer: TRUE i v



Difficulty: 1 Easy
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Topic: Identify Contemporary Payroll Practices
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Learning Objective: 01-04 Identify Contemporary Payroll Practices
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Bloom's: Understand
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AACSB: Technology i v



i Accessibility: Keyboard
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Navigation
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8) The IRS uses EINs to track employers for tax purposes.
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Answer: TRUE i v



Difficulty: 1 Easy
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Topic: Identify Contemporary Payroll Practices
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Learning Objective: 01-04 Identify Contemporary Payroll Practices
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Bloom's: Remember
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AACSB: Communication i v



3
Copyright © 2019 McGraw-Hill Education. All rights reserved. iv iv iv iv iv iv iv


No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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