Question 1

Explain the integration of payroll with the human resource management (HRM)system that often happens in moderate- and large-sized organizations.

Accepted Answer

The HRM system captures and processes a ...

Question 2

The fixed asset system performs all of the following except

Accepted Answer

A)  determines the need for new assets
B)  maintains depreciation records
C)  records retirement and disposal of assets
D)  tracks the physical location of fixed assets

Question 3

Describe an internal control that would prevent the acquisition of office equipment which is not needed by the firm.

Accepted Answer

A higher organizational level ...

Question 4

Employee paychecks should be drawn against a special checking account.

Accepted Answer

A) True 
 B)False

Question 5

What is a personnel action form?

Accepted Answer

The personnel action form provides the p...

Question 6

Which control is not a part of the fixed asset system?

Accepted Answer

A)  formal analysis of the purchase request
B)  review of the assumptions used in the capital budgeting model
C)  development of an economic order quantity model
D)  estimates of anticipated cost savings

Question 7

Three major tasks are handled by the fixed asset system.What is the purpose of each? What special control issues affect each?

Accepted Answer

Asset acquisition handles the steps lead...

Question 8

The personnel action form provides authorization control by

Accepted Answer

A)  preventing paychecks for terminated employees
B)  verifying pay rates for employees
C)  informing payroll of new hires
D)  all of the above

Question 9

Work-in-process records are updated by payroll personnel.

Accepted Answer

A) True 
 B)False

Question 10

Outline the key steps taken in a basic technology payroll system when preparing the weekly payroll for a manufacturing firm.

Accepted Answer

Personnel action and time and attendance...

Question 11

Time cards capture the total time an individual worker spends on each production job.

Accepted Answer

A) True 
 B)False

Question 12

Which transaction is not processed in the fixed asset system?

Accepted Answer

A)  purchase of building
B)  improvement of equipment
C)  purchase of raw materials
D)  sale of company van

Question 13

Asset maintenance involves only the recording of depreciation charges.Physical improvements are always expensed.

Accepted Answer

A) True 
 B)False

Question 14

Which department authorizes changes to employee pay rates?

Accepted Answer

The personnel depart...

Question 15

The fixed asset disposal report authorizes the user department to dispose of a fixed asset.

Accepted Answer

A) True 
 B)False

Question 16

Inventory control performs the formal record keeping function for fixed assets.

Accepted Answer

A) True 
 B)False

Question 17

The payroll department performs all of the following except

Accepted Answer

A)  prepares paychecks
B)  transfers adequate funds to the payroll imprest account
C)  updates employee payroll records
D)  prepares the payroll register

Question 18

Discuss the fundamental risk and control issues associated with fixed assets that are different from raw materials and finished goods.

Accepted Answer

Authorization Controls.Because fixed ass...

Question 19

Describe an internal control that would prevent an employee from stealing a computer and then reporting it as scrapped.

Accepted Answer

Supervisors must authorize the...

Question 20

Which of the following statements is not true?

Accepted Answer

A)  Routine payroll processing begins with the submission of time cards.
B)  Payroll clerks must verify the hours reported on the time cards.
C)  Payroll reconciles personnel action forms with time cards and prepares paychecks.
D)  Cash disbursements signs paychecks and forwards them to the paymaster for distribution.

Exam 6: The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

What is a personnel action form?

Correct AnswerverifiedThe personnel action form provides the p...View AnswerShow Answer

Discuss the fundamental risk and control issues associated with fixed assets that are different from raw materials and finished goods.

Correct AnswerverifiedAuthorization Controls.Because fixed ass...View AnswerShow Answer

Explain the integration of payroll with the human resource management (HRM)system that often happens in moderate- and large-sized organizations.

Correct AnswerverifiedThe HRM system captures and processes a ...View AnswerShow Answer

Which department authorizes changes to employee pay rates?

Correct AnswerverifiedThe personnel depart...View AnswerShow Answer

Time cards capture the total time an individual worker spends on each production job.

Correct AnswerverifiedShow Answer

Which of the following statements is not true?

Correct AnswerverifiedShow Answer

Asset maintenance involves only the recording of depreciation charges.Physical improvements are always expensed.

Correct AnswerverifiedShow Answer

Describe an internal control that would prevent an employee from stealing a computer and then reporting it as scrapped.

Correct AnswerverifiedSupervisors must authorize the...View AnswerShow Answer

The personnel action form provides authorization control by

Correct AnswerverifiedShow Answer

Three major tasks are handled by the fixed asset system.What is the purpose of each? What special control issues affect each?

Correct AnswerverifiedAsset acquisition handles the steps lead...View AnswerShow Answer

Employee paychecks should be drawn against a special checking account.

Correct AnswerverifiedShow Answer

Outline the key steps taken in a basic technology payroll system when preparing the weekly payroll for a manufacturing firm.

Correct AnswerverifiedPersonnel action and time and attendance...View AnswerShow Answer

Inventory control performs the formal record keeping function for fixed assets.

Correct AnswerverifiedShow Answer

Describe an internal control that would prevent the acquisition of office equipment which is not needed by the firm.

Correct AnswerverifiedA higher organizational level ...View AnswerShow Answer

The fixed asset system performs all of the following except

Correct AnswerverifiedShow Answer

Which control is not a part of the fixed asset system?

Correct AnswerverifiedShow Answer

The fixed asset disposal report authorizes the user department to dispose of a fixed asset.

Correct AnswerverifiedShow Answer

Which transaction is not processed in the fixed asset system?

Correct AnswerverifiedShow Answer

Work-in-process records are updated by payroll personnel.

Correct AnswerverifiedShow Answer

The payroll department performs all of the following except

Correct AnswerverifiedShow Answer

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The personnel action form provides the p...
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Authorization Controls.Because fixed ass...
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The HRM system captures and processes a ...
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The personnel depart...
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Correct Answer
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Correct Answer
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Correct Answer
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Supervisors must authorize the...
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Asset acquisition handles the steps lead...
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Personnel action and time and attendance...
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A higher organizational level ...
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