CPP Certified Payroll Professional APA Master Exam Practice 406 Questions with Verified Answers
Form SS-8 - CORRECT ANSWER Determination of Worker
... [Show More] Status for Purposes of Federal Employment Taxes and Income Tax Withholding
Form W-9 - CORRECT ANSWER First, it is used by third parties to collect identifying information to help file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the person who files the information return for verification purposes.
The information on the Form W-9 and the payment made are reported on a Form 1099.
The second purpose is to help the payee avoid backup withholding. The payer must collect withholding taxes on certain reportable payments for the IRS. However, if the payee certifies on the W-9 they are not subject to backup withholding they generally receive the full payment due them from the payer. This is similar to the withholding exemptions certifications found on Form W-4 for employees.
Form SS-5 - CORRECT ANSWER Apply for an original Social Security card
Apply for a replacement Social Security card
Change or correct information on your Social Security number record
Form SS-4 - CORRECT ANSWER Application for Employer Identification Number (EIN)
Accounting equation (Balance Sheet) - CORRECT ANSWER Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
Asset (Debit or Credit Normal Balance?) - CORRECT ANSWER Debit
Expense (Debit or Credit Normal Balance?) - CORRECT ANSWER Debit
Liability (Debit or Credit Normal Balance?) - CORRECT ANSWER Credit
Capital (Debit or Credit Normal Balance?) - CORRECT ANSWER Credit
Owners Equity (Debit or Credit Normal Balance?) - CORRECT ANSWER Credit
Revenue (Debit or Credit Normal Balance?) - CORRECT ANSWER Credit
Escheat laws - CORRECT ANSWER Refer to unclaimed property obligations. Companies who issue checks-for wages, payroll, employee commissions, returnable garnishments, deferred compensation, payroll services or bonuseshave a potential (and probable) unclaimed property obligation.
Schedule D (Form 941) - CORRECT ANSWER to explain certain discrepancies (caused by acquisitions, statutory mergers, and consolidations) between Forms W-2, Wage and Tax Statement (Copy A), and Forms 941, Employer's QUARTERLY Federal Tax Return, for the totals of social security wages, Medicare wages and tips, social security tips, federal income tax withheld, and advance earned income credit (EIC) payments
Workweek for 14 and 15-year-olds - CORRECT ANSWER Outside school hours, and on school days including Fridays, no more than 3 hours.
No more than 8 hours on a non-school day.
When school is in session, no more than 18 hours per week.
No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m, extended to 9 p.m. Between June 1 and Labor Day.
1) Which form is used for Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding?
A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8 - CORRECT ANSWER D
2) What amount must an independent contractor be paid for services rendered before an employer is obligated to give them a 1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600 - CORRECT ANSWER C
3) Qualified real estate agents and direct sellers are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - CORRECT ANSWER B
4) Under the common law test, the IRS examiners are to group the evidence they gather into three general types or "categories" Which of the following is not one of them?
A. Behavioral control
B. Financial control
C. Location of work
D. Relationship of the parties - CORRECT ANSWER C
5) Which of the following is not regulated by the FLSA?
A. Child labor
B. Overtime pay
C. Minimum Wage Rates
D. 8 hour work day - CORRECT ANSWER D
6) Agent-drivers, commission-drivers and full-time life insurance salespersons are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - CORRECT ANSWER A
7) There are three parts of the ABC test, which is not one of them?
A. Business-unusual and/ or away
B. Risk of loss
C. Customarily independent contractor
D. Absence of control - CORRECT ANSWER B
8) Under the federal new hire reporting requirement how many days does an employer have after hire date?
A. 10 days
B. 20 days
C. 30 days
D. 40 days - CORRECT ANSWER B
9) What is Form I-9 used for?
A. Application for Employer Identification Number
B. Determination of Employee Work Status
C. Application for IRS Individual Taxpayer
D. Employment Eligibility Verification - CORRECT ANSWER D
10) Under the reasonable basis test, which of the following does not support an employer's treatment of a worker as an independent contractor?
A. Past IRS employment tax audit
B. Published IRS rulings
C. Place of work
D. Private letter rulings - CORRECT ANSWER C
11) What does FLSA stand for?
A. Federal Labor Standards Act
B. Fair Labor Standards Act
C. Federal Labor Standards Agency
D. Fair Labor Standards Agency - CORRECT ANSWER B
12) Which of the following is not covered under the FLSA?
A. Regulate how often employees must be paid
B. Mandates equal pay for equal work
C. Requires recordkeeping by employers
D. sets the minimum wage and overtime rates employees must receive for their work - CORRECT ANSWER A
13) Who enforces the Federal Wage-Hour Law?
A. Individual States
B. IRS
C. EEOC
D. DOL - CORRECT ANSWER D
14) Who enforces the equal pay provisions?
A. Individual States
B. IRS
C. EEOC
D. DOL - CORRECT ANSWER C
15) Which is not one of the White Collar Exemption?
A. Administrative
B. Executive
C. Management
D. Professional employees - CORRECT ANSWER C
16) For overtime pay Which one is included in the regular rate?
A. Discretionary bonuses
B. Nondiscretionary bonuses
C. Gifts
D. Reimbursed expenses - CORRECT ANSWER B
17) For calculation of overtime pay Which one is not included in the regular rate?
A. Supplemental disability payments
B. On-call pay
C. Retroactive pay
D. Vacation pay - CORRECT ANSWER D
18) A computer professional must be paid at least what per hour to be exempt from overtime requirements under the FLSA?
A. Minimum wage per hour
B. 21.55 per hour
C. 27.63 per hour
D. 29.67 per hour - CORRECT ANSWER C
20) What is the federal minimum wage rate?
A. 4.25
B. 5.85
C. 6.55
D. 7.25 - CORRECT ANSWER D
21) So long as the employee's tips are enough to make up the remainder of the minimum hourly wage What is the federal minimum wage for tipped employee?
A. 2.01
B. 2.07
C. 2.09
D. 2.13 - CORRECT ANSWER D
22) What is the time limit on filing an FLSA complaint with the Wage and Hour Division?
A. 1 or 2 years
B. 2 or 3 years
C. 3 or 4 years
D. 4 or 5 years - CORRECT ANSWER B
23) A "working condition" fringe benefit is?
A. Discount offered employees that's not more than 20% of the price for services offered to customers
B. A service or an item of such small value as to make accounting for the benefit unreasonable
C. A service the employee could deduct as a business expense if he or she had paid for it
D. Services provided free or at reduced rates by an - CORRECT ANSWER C
24) A "de minimis" fringe benefit is?
A. Discount offered employees that's not more than 20% of the price for services offered to customers 20% of the price for services offered to customers
B. A service or an item of such small value as to make accounting for the benefit unreasonable
C. A service the employee could deduct as a business expense if he or she had paid for it - CORRECT ANSWER B
25) A "Qualified employee discount" is?
A. Discount offered employees that's not more than 20% of the price for services offered to customers 0
B. A service or an item of such small value as to make accounting for the benefit unreasonable
C. A service the employee could deduct as a business expense if he or she had paid for it - CORRECT ANSWER A
26) A "No-additional-cost services" is?
A. Discount offered employees that's not more than 20% of the price for services offered to customers
B. 20% of the price for services offered to customers
C. A service or an item of such small value as to make accounting for the benefit unreasonable
D. A service the employee could deduct as a business expense if he or she had paid for it - CORRECT ANSWER D
27) What is the maximum amount excluded from income by law in 2018 for employer-provided parking?
A. $120.00
B. $125.00
C. $230.00
D. $260.00 - CORRECT ANSWER D
28) What is the maximum amount excluded from income by law in 2018 for Transit passes?
A. $120.00
B. $260.00
C. $230.00
D. $255.00 - CORRECT ANSWER B
29) What is the maximum per round trip an employee may receive under commuting valuation method?
A. $6.00
B. $3.00
C. $1.50
D. 0 - CORRECT ANSWER B
30) Expenses on a job-related move can be considered deductible and reimbursements for them excluded from income when what is met?
A. New workplace must be at least 50 miles farther from the employee's old residence than the previous workplace was
B. 12 months immediately following move, must work fulltime for at least 39 weeks in the general location of the new workplace
C. At least 50 miles from old workplace then new
D. Both A and B - CORRECT ANSWER D
31) An employee's date of birth is April 15, 1974 What age would be used for calculating group term life insurance for January 2012?
A. 27
B. 28
C. 37
D. 38 - CORRECT ANSWER D
32) An employee is temporarily disabled and is being paid by a third party who is not an agent To request federal income tax withheld from third-party sick pay, which of the following form must be completed?
A. Form W-4
B. Form W-4P
C. Form W-4S
D. Form W-5 - CORRECT ANSWER C
33) On what form must wages be reported on if an employee dies after receiving a paycheck but before cashing it and the check is reissued to the employee's personal representative?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R - CORRECT ANSWER B
34) Wages paid after the year of death are subject to what withholding taxes?
A. Social Security, Medicare, Federal income tax and FUTA
B. Social Security, Medicare and FUTA
C. Social Security, Medicare
D. None - CORRECT ANSWER D
35) The IRS approved rate for employer provided fuel for 2018 is?
A. 5 cents per mile
B. 5.5 cents per mile
C. 55.5 cents per mile
D. 58.5 cents per mile - CORRECT ANSWER B
36) Which of the following is not a recordkeeping requirement for business use of company provided vehicles?
A. Trips mileage
B. Trips date
C. Trips usage of car phone
D. Business purpose of the trip - CORRECT ANSWER C
37) Wages paid after the year of death are report on which of the following form?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R - CORRECT ANSWER C
38) The IRS standard business mileage rate for 2018 is?
A. 5.5 cents per mile
B. 51 cents per mile
C. 54.5 cents per mile
D. 58.5 cents per mile - CORRECT ANSWER C
43) What is the maximum amount of employer provided group term life insurance that can be excluded from an employee's income?
A. One times their annual salary
B. $2,000
C. $50,000
D. $100,000 - CORRECT ANSWER C
44) Which of the following is a "de minimis" fringe and is excluded from taxable earnings?
A. $25 gift certificate for Rainbow Foods
B. $25 Target gift certificate
C. $25 company check
D. Gift certificate (e.g. Ham, Turkey) - CORRECT ANSWER D
46) Under the IRC, which section regulates cafeteria plans?
A. 123
B. 125
C. 127
D. 129 - CORRECT ANSWER B
47) What is the maximum amount for 2018 that an employee may elect to defer to a 401 (k) or 403 (b) plan? A. $15,000
B. $15,500
C. $16,500
D. $18,500 - CORRECT ANSWER D
48) What is the maximum amount for 2018 that an employee may elect to defer to a 457 plan?
A. $15,500
B. $16,500
C. $18,500
D. $19,500 - CORRECT ANSWER C
49) What is the maximum amount for 2018 that an employee may elect for FSA dependent care?
A. $2,400
B. $5,000
C. $7,500
D. No Limit - CORRECT ANSWER B
50) An employer with 120 participants offering a cafeteria plan must annually file what form?
A. Suspended in 2002 no filing needed
B. Form 5500 C/R
C. Form 5500
D. Form 5550 C/R - CORRECT ANSWER A
51) Which of the following can not be part of a cafeteria plan?
A. Group-term life insurance
B. Qualified adoption assistance
C. Cash
D. Medical Savings Accounts - CORRECT ANSWER D
52) Under a cafeteria plan, pretax contribution to a 401 (k) are subject to what federal taxes?
A. FICA, FUTA and FIT
B. FICA and FUTA
C. FICA
D. None - CORRECT ANSWER B
53) CODA stand for what?
A. Cash or Deferred Account
B. Cost of Dependent Adoption
C. Cash or Deferred Arrangement
D. Cafeteria or Deferred Account - CORRECT ANSWER C
54) Who is at risk of forfeiture in a cafeteria plan health care FSA?
A. No one is at risk
B. Employee only
C. Employer only
D. Both employee and employer - CORRECT ANSWER D
55) What does FSA stand for?
A. Federal Savings Accounts
B. Flexible Spending Arrangement
C. Fair Standards Act of 1985
D. Federal Service Agency - CORRECT ANSWER B
56) Under a 125 plan pretax deductions are subject to what federal taxes?
A. FICA, FUTA and FIT
B. FICA and FUTA
C. FICA
D. None - CORRECT ANSWER D
57) State and local government employees would participate in which of the following deferred plans?
A. 401 (k)
B. 403 (b)
C. 408
D. 457 - CORRECT ANSWER D
58) Public schools employees would participate in which of the following deferred plans?
A. 401 (k)
B. 403 (b)
C. 408
D. 457 - CORRECT ANSWER B
59) Which of the following employer stock purchase plans might be included in a qualified 401 (k) plan?
A. ERISA
B. ESOP
C. IRA
D. SEP - CORRECT ANSWER B
60) What does ADP stand for?
A. Automatic Deposited Paycheck
B. Automated Data Process
C. Actual Defined Pension
D. Actual Deferral Percentage - CORRECT ANSWER D
61) The defined benefit plans are generally administer by which department?
A. Human Resources
B. Payroll
C. Employment
D. Benefits - CORRECT ANSWER D
62) The Family and Medical Leave Act of 1993 is administered and enforced by what department?
A. Internal Revenue Service
B. Fair Labor Standards Act
C. Department of Labor
D. Equal Employment Opportunity Commission - CORRECT ANSWER C
63) Which of the following may not be regulated by state law?
A. How often employees must be paid
B. What employers must do with unclaimed paychecks
C. How soon employees must be paid after their employment is terminated
D. What minimum wage an employee must receive - CORRECT ANSWER D
65) Which of the following is not a advantage of the direct deposit system to the employer?
A. Direct deposit cannot be made mandatory in most states
B. Prevents lost and stolen checks
C. employees do not have to take time out of their work day to cash or deposit their paycheck
D. Better control of check stock - CORRECT ANSWER A
66) Which of the following is not a disadvantage of the direct deposit system to the employer?
A. Direct deposit is not a paperless system
B. Cannot dictate the bank that the employee uses
C. Do not have to file/store cashed checks and related documents
D. Loss of interest on payroll funds before paychecks clear - CORRECT ANSWER C
67) What are escheat laws?
A. Federal laws governing direct deposit
B. Federal laws governing unclaimed wages as abandoned property
C. State laws governing direct deposit
D. State laws governing unclaimed wages as abandoned property - CORRECT ANSWER D
69) Request for Taxpayer Identification Number and Certification is submitted on which form?
A. Form SS-4
B. Form SS-8
C. Form W-7
D. Form W-9 - CORRECT ANSWER D
70) What is the 2018 social security wage base?
A. $4,624.20
B. $106,800
C. $128,400
D. No maximum amount - CORRECT ANSWER C
71) Verifying Social Security Numbers The SSA has three verification methods available to employers Which of the following is not one of them?
A. Fax
B. Phone
C. Paper list
D. Magnetic tape - CORRECT ANSWER A
72) For employee's who do not have an SSN they can get one by submitting "Application for a Social Security Card" Which of the following is the correct form?
A. Form SS-4
B. Form SS-5
C. Form SS-8
D. Form SSA-7004 - CORRECT ANSWER B
73) When supplemental wage payment is paid separately or clearly indicated when add to regular wages What is the flat withholding rate for 2018?
A. 22%
B. 27%
C. 28%
D. 30% - CORRECT ANSWER A
74) What is the percentage on "backup withholding" for 2018?
A. 25%
B. 27%
C. 28%
D. 35% - CORRECT ANSWER C
75) Employees who want to take advantage of advance EIC must file an Earned Income Credit Advance Payment Certificate annually Which of the following is the correct form?
A. Form W-9
B. Form W-5
C. Form W-2
D. Not available in 2018 - CORRECT ANSWER D
76) Which of the following would not be a supplemental wage payment?
A. Vacation pay
B. Backpay awards
C. Retroactive pay
D. Bonuses - CORRECT ANSWER A
77) Which of the following can a employer refuse to do?
A. Withhold an IRS levy
B. Withhold Support deduction
C. Change their name until a new social security card, with new name is presented 0 - CORRECT ANSWER C
78) A new hire does not submit payroll a W-4 by their first payday, they are married and have three children What withholding status do you use when calculating his withholding?
A. Married with 3 allowances
B. Married with 0 allowances
C. Single with 4 allowances
D. Single with 0 allowances - CORRECT ANSWER D
79) Generally an employer must file Form 940 by what date, of the year after the FUTA liability was incurred?
A. January 31
B. February 28
C. April 1
D. April 30 - CORRECT ANSWER A
80) What is the FUTA taxable wage base for 2018? It is also the SUI minimum taxable wage base
A. $7000
B. $7500
C. $8000
D. $9000 - CORRECT ANSWER A
81) What is the effective FUTA tax rate for 2018?
A. .6%
B. .8%
C. 5.4%
D. 6.0% - CORRECT ANSWER A
82) For depositing and paying FUTA tax If due date falls on a weekend or federal/state holiday when is the payment due?
A. Add to next deposit
B. At the earliest time possible
C. One business day earlier
D. Next business day - CORRECT ANSWER D
83) How many weeks can a terminated employee collect unemployment without filing an extension?
A. 6 Months
B. 26 weeks
C. 39 weeks
D. 52 weeks - CORRECT ANSWER B
84) Which of the following is not one of methods used to determine an employer's unemployment insurance experience rating?
A. Benefit ratio
B. Benefit-wage ratio
C. Payroll ratio
D. Reserve ratio - CORRECT ANSWER C
85) Which of the following is not one of the types of employment that are exempt from FUTA?
A. Life insurance agents who receive only commissions
B. Tipped employees
C. Work performed by statutory nonemployees
D. Work on a foreign ship outside the U.S. - CORRECT ANSWER B
86) What is the credit percentage if an employer receives a full credit on FUTA for 2018?
A. .6%
B. .8%
C. 5.4%
D. 6.0% - CORRECT ANSWER C
88) Employers are assigned one of two depositor status classifications for Payroll Tax Deposit Rules Which of the following is correct?
A. Quarterly or monthly
B. Monthly or weekly
C. Monthly or semiweekly
D. Monthly or semimonthly - CORRECT ANSWER C
89) What is the lookback period for calendar year 2016 for Payroll Tax Deposit Rules?
A. July 1, 2014 - June 30, 2015
B. January 1, 2014 - December 31, 2014
C. Company previous fiscal year
D. Lookback period is 12 months - CORRECT ANSWER A
90) What amount of employment tax liability must an employer reach before the one-day deposit rule is in effect?
A. $25,000 or more
B. $50,000 or more
C. $100,000 or more
D. $150,000 or more - CORRECT ANSWER C
91) The shortfall rule allows an employer to deposit what percentage of their payroll tax liability without a penalty?
A. Must be 100%
B. 98%
C. 95%
D. 90% - CORRECT ANSWER B
92) Which of the following form is use to report backup withholding?
A. Form 940
B. Form 941
C. Form 941c
D. Form 945 - CORRECT ANSWER D
93) What happens when a monthly depositor accumulates $100,000 in tax liability on any day during a month?
A. Is a one day depositor the rest of the year
B. Remains a monthly depositor, but need to deposit on the next business day anytime accumulates $100,000 in tax liability
C. Becomes semiweekly for the rest of the year
D. Becomes semiweekly for the rest of current year and entire next calendar year, also needs to deposit on next business day - CORRECT ANSWER D
94) How long must an employer keep undeliverable copies of employee's Form W-2?
A. Three years
B. Four years
C. Five years
D. Seven years - CORRECT ANSWER B
95) An employee is terminated on 7/1/16 The following week a request in writing was received requesting his 2016 Form W-2 How long does the employer have to send it out?
A. 10 days of the request
B. 20 days of the request
C. 30 days of the request
D. January 31, 2013 - CORRECT ANSWER C
96) Who would use Form 941-M?
A. Semiweekly depositors
B. Monthly depositors
C. Both A and B
D. Employers that fail to withhold or deposit taxes or file returns on time - CORRECT ANSWER D
97) Which of the following is used to deposit withheld federal income and employment taxes?
A. Form 8809
B. Form 941
C. Form 940
D. EFTPS - CORRECT ANSWER D
98) All 2016 Copy A of Form W-2 and Form W-3 must be filed with the SSA by what date following the calendar year in which the wages were paid?
A. January 31
B. By the end of February
C. March 31
D. April 1 - CORRECT ANSWER B
99) If an employer mailed their payroll tax deposits through the US Postal Service, the deposits would be considered timely if postmarked at least how many days before due date?
A. One day
B. Two days
C. Has to be receive by due date or penalties will apply
D. As long as it has the due day or earlier no penalties apply - CORRECT ANSWER B
100) When are employers required to mail copies of Form W-4 to the IRS?
A. Claims more than 10 withholding allowances
B. Claims exempt from withholding
C. IRS request it in writing
D. Claims 10 withholding allowances and is single - CORRECT ANSWER C
101) When is an employee not subject to FICA tax?
A. Over age of 70
B. Over age of 65
C. Over age of 59 1/2
D. None of the above - CORRECT ANSWER D
102) What does OASDI stand for?
A. Old Age Survivors and Disability Insurance
B. Old Age Survivors and Disability Income
C. Old Age Severance and Disability Insurance
D. Old Age Severance and Disability Income - CORRECT ANSWER A
103) Non qualified plans go in which box on the Form W-2?
A. Box 8
B. Box 9
C. Box 10
D. Box 11 - CORRECT ANSWER D
104) In which box on Form W-2 should allocated tips be reported?
A. Box 1
B. Box 1, 3 and 5
C. Box 1, 5 and 7
D. Box 8 - CORRECT ANSWER D
105) An employee's gross for the year is 30,000 In which box on Form W-2 must an employer provided dependent care assistance be included when it exceeds $5,000?
A. Box 1 and 10
B. Box 1, 3 and 5
C. Box 10
D. Box 1, 3, 5 and 10 - CORRECT ANSWER D
106) Group term life insurance over $50,000 is reported in Box 12 on Form W-2 What code is also included?
A. Code A
B. Code C
C. Code L
D. Code P - CORRECT ANSWER B
107) The IRS will send an employer a federal tax levy on which of the following form?
A. Form 668-D 4 part
B. Form 668-D 6 part
C. Form 668-W 4 part
D. Form 668-W 6 part - CORRECT ANSWER D
108) Who sets the maximum amount that can be withhold from an employee's wages for child or spousal support?
A. IRS
B. FLSA
C. CCPA
D. Individual States - CORRECT ANSWER C
109) If an employee is not supporting another child and/or spouse and is not in arrears, what is the maximum amount of disposable earnings that can be withheld?
A. 50%
B. 55%
C. 60%
D. 65% - CORRECT ANSWER C
110) An employer may charge the employee an administrative fee for processing the wage withholding order each payperiod Who sets the maximum amount for the fee?
A. IRS
B. FLSA
C. CCPA
D. Individual States - CORRECT ANSWER D
111) What is the maximum amount an employee's disposable earnings that can be garnished to pay a debt? A. 25%
B. 30%
C. 65%
D. 75% - CORRECT ANSWER A
113) Which of the following is subtracted from earnings to calculate disposable earnings?
A. All active deductions
B. All deductions required by law
C. Union Dues
D. Life insurance premiums - CORRECT ANSWER B
114) Which of the following requires an employee's signature?
A. IRS levy
B. Child support withholding order
C. Federal taxes
D. Company loan repayment deduction - CORRECT ANSWER D
115) If all the following were received at the same time which one would take the highest priority?
A. Child support
B. Student Loans
C. Garnishments
D. IRS tax levy - CORRECT ANSWER A
116) How long must an employer retain an employees W-4 A. Two years after due date of the tax return
B. Three years after due date of the tax return
C. Four years after due date of the tax return
D. Five years after due date of the tax return - CORRECT ANSWER C
117) ADEA requires employer to retain records of an employee's name, address, date of birth, occupation, pay rate and compensation for how long?
A. Two years
B. Three years
C. Four years
D. Five years - CORRECT ANSWER B
118) FLSA requires certain records to be kept by all covered employers for all employees and retained for how many years?
A. Two years
B. Three years
C. Four years
D. Two or three years - CORRECT ANSWER D
119) Form I-9 must be made available for inspection by the Department of Labor within how many days of a request? A. Three days
B. Four days
C. Five days
D. As soon as they arrive - CORRECT ANSWER A
120) Records required by the ADEA must be kept at the employee's worksite or a central recordkeeping location If the records are kept at a central location how long does an employer have to turnover the records for inspection by EEOC?
A. 24 hours
B. 48 hours
C. 72 hours
D. As soon as they arrive - CORRECT ANSWER C
121) Which of the following is not an expense account?
A. Wages payable
B. Employer paid benefit costs
C. Maintenance for computers
D. Office supply costs - CORRECT ANSWER A
122) Of the following accounts which does not have a normal balance as a debit?
A. Income Distributed
B. Expense
C. Asset
D. Equity - CORRECT ANSWER D
123) Of the following accounts which is not a liability account?
A. Accounts payable
B. Contributions owed to a company benefit plan
C. Employer share of payroll taxes
D. Union dues deducted from pay but not yet paid to union - CORRECT ANSWER C
124) Which of the following account does not have a normal balance as a credit?
A. Revenue
B. Expense
C. Contributed Capital
D. Equity - CORRECT ANSWER B
125) Which of the following is not part of the balance sheet?
A. Net earnings
B. Deferred assets
C. Long term liabilities
D. Plant, property and equipment - CORRECT ANSWER A
126) Of the following which is not on the income statement?
A. Shareholder's equity
B. Earnings per share
C. Non-operating expenses
D. Gross margin on sales - CORRECT ANSWER A
127) Which of the following is classified as a record of original entry?
A. General ledger
B. Trail balance
C. Journal
D. Posting - CORRECT ANSWER C
128) Entering an amount on the left side of an account is called? How many hours are paid at the overtime rate?
A. Increasing a revenue account
B. Decreasing a liability account
C. Debiting the account
D. Crediting the account - CORRECT ANSWER C
129) A journal entry containing more than one debit or more than one credit is called?
A. T-account
B. Compound entry
C. Double entry
D. Transaction - CORRECT ANSWER B
130) An accounting period is which of the following?
A. Month
B. Quarter
C. Year
D. Any length of time covered by an income statement - CORRECT ANSWER D
131) The definition of an expense is which of the following? A. Debts of a business that have yet to be paid
B. Resources acquired by a business that are consumed by the business
C. Purchase of goods or services consumed during the accounting period - CORRECT ANSWER C
132) The definition of a liability is:
A. Debts of a business that have yet to be paid
B. Resources acquired by a business that are consumed by the business consumed by the business
C. Purchase of goods or services consumed during the accounting period - CORRECT ANSWER A
133) The definition of equity is:
A. Debts of a business that have yet to be paid
B. Resources acquired by a business that are consumed by the business
C. Purchase of goods or services consumed during the accounting period
D. Result of subtracting liabilities from assets - CORRECT ANSWER D
134) For an expense that was accrued for last month what must an accounting department do the next month?
A. Adjustment entry
B. Nothing
C. An accrual reversal
D. Debit cash, credit expense - CORRECT ANSWER C
135) What is the definition of an asset?
A. Debits of a business that have yet to be paid
B. Resources acquired by businesses that are consumed by the business
C. Purchase of goods or services, or costs incurred on a one time or short term basis
D. Result of subtracting liabilities from assets - CORRECT ANSWER B
136) What does it mean when two systems are interfaced? A. Printers, modems, external drive
B. Data reside on a server
C. Powerful personal computers
D. Sharing data needed by both - CORRECT ANSWER D
139) What is not a disadvantage of a service bureau?
A. Possibly high variable costs
B. Reduction in processing delays
C. Responsibility for filing errors
D. Little time for change - CORRECT ANSWER B
140) What is an environment called where all computers are physically attached to each other and data is transmitted at high speeds over short distances?
A. Network
B. Modem
C. LAN
D. WAN - CORRECT ANSWER C
141) What is not an advantage of a service bureau?
A. New services can be added
B. Fewer research problems
C. Control over security
D. Low processing costs - CORRECT ANSWER C
142) What is not a disadvantage of an in-house microcomputer network?
A. Keep system up to date
B. Data sharing
C. Network manager needed
D. Initial installation cost - CORRECT ANSWER B
143) What is not an advantage of off the shelf software?
A. Small employers only
B. Low cost
C. Ease of use
D. Use it right away - CORRECT ANSWER A
144) What is not a disadvantage of vendor supplied software packages?
A. Improper fit
B. Specific needs may not be met
C. User group networking
D. Training - CORRECT ANSWER C
145) What is not a advantage of customized software?
A. Update responsibility
B. Increased flexibility
C. Control
D. Special needs - CORRECT ANSWER A
146) What is not part of selecting a computerized payroll system?
A. Analyze
B. Build a project team
C. RFP
D. Putting controls into the process - CORRECT ANSWER D [Show Less]