Question 1

Payroll disbursements are to be authorized by the accounts payable department on the basis of the company's need to satisfy its obligation to its employees.

Accepted Answer

Payroll disbursements are the responsibility of the accounts payable department, and they are authorized based on the company's need to pay its employees.

Question 2

The paymaster should be independent from the departmental supervision responsibilities, so that it can be determined that the paychecks are being distributed to active employees.

Accepted Answer

This separation of duties helps to prevent any conflicts of interest or potential fraud. The paymaster should have a separate and independent role in ensuring that employees are paid accurately and timely.

Question 3

A challenging area of payroll computation is computing the amount of deductions related to each employee's pay.

Accepted Answer

Deductions related to each employee's pay can vary greatly, including taxes, insurance premiums, retirement contributions, and other benefits. Determining the correct amount of each deduction can be complex and requires attention to detail.

Question 4

It is the responsibility of the payroll department to make certain that all time sheets represent actual time worked by currently active employees.

Accepted Answer

The answer of It is the responsibility of the payroll...

Question 5

Overtime hours are paid at a rate different from the regular hours, usually one and one-half times the standard rate.

Accepted Answer

Overtime hours are usually paid at a rate of 1.5 times the regular pay rate.

Question 6

The human resources department should be responsible for the record keeping function related to payroll.

Accepted Answer

The record-keeping function related to payroll is typically managed by the payroll department or finance department to ensure accuracy and compliance, while the human resources department handles employee-related data and benefits.

Question 7

Payroll outsourcing has become popular and prevalent) become is offers increased convenience and confidentiality.

Accepted Answer

Payroll outsourcing allows companies to hand over the responsibility of payroll management to a third-party provider, which can offer increased convenience and confidentiality. This has led to its popularity and prevalence in today's business world.

Question 8

The cash disbursements department should have the responsibility of signing and essentially approving all paychecks.

Accepted Answer

The cash disbursements department is responsible for issuing and distributing paychecks, but the approval and signing of paychecks should be done by someone else, such as a payroll manager or authorized signer designated by the company. This segregation of duties helps to prevent fraud and errors.

Question 9

Payroll information includes personal information about employees, such as their pay rate and performance, and must be kept confidential.

Accepted Answer

Payroll information is sensitive in nature and contains personal details about employees, including their salary, bonuses, benefits, and performance data. As such, it must be kept confidential in order to protect employees' privacy and prevent potentially damaging leaks of information. Only authorized personnel, such as HR staff and payroll administrators, should have access to this data in order to ensure that it remains secure and confidential.

Question 10

Strong internal controls are just as important for small organizations with few employees paid once per month as it is for large organizations with numerous employees being paid weekly.

Accepted Answer

The answer of Strong internal controls are just as important...

Question 11

It is common that personnel related expenses are one of the largest expenses reported on the company's income statement.

Accepted Answer

Personnel-related expenses such as salaries, benefits, and bonuses are usually a significant cost for companies and can be one of the largest expenses reported on the income statement.

Question 12

The investment in fixed assets is often the largest asset reported on the income statement.

Accepted Answer

The investment in fixed assets is reported on the balance sheet, not the income statement. The income statement reports revenues, expenses, and net income or loss.

Question 13

Before the paychecks are sent to management for authorization, the human resources department should compare the hours reported on the time sheets with the hours shown on the payroll register.

Accepted Answer

The answer of Before the paychecks are sent to management...

Question 14

Although it is uncommon, some companies maintain separate checking accounts that are used for payroll transactions.

Accepted Answer

The answer of Although it is uncommon, some companies maintain...

Question 15

An alternative to batch processing is the use of electronic timekeeping devices, such as time clocks or badge readers.

Accepted Answer

Electronic timekeeping devices allow for real-time tracking of employee hours and can eliminate the need for batch processing of time and attendance data.

Question 16

Accounting software is available to assist with payroll but it is not very efficient because of all the changes that occur to all payroll variables during the period.

Accepted Answer

Modern accounting software is designed to efficiently handle payroll changes, including tax rates and employee information, through regular updates and automation features.

Question 17

Preparing payroll manually is extremely time consuming due to the process of extracting all these inputs from the records and performing the mathematical computations.

Accepted Answer

Preparing payroll manually is a time-consuming process as it involves the extraction of various inputs from records and performing mathematical computations to arrive at the final payroll figures.

Question 18

Because of the infrequency of payroll processing and the sequential nature of the payroll process, many companies find that real-time processing is well-suited for payroll activities.

Accepted Answer

The statement is incorrect. Real-time processing is not well-suited for payroll activities because of the sequential nature of the payroll process and the infrequency of payroll processing. Payroll processing typically occurs on a regular schedule, such as weekly or bi-weekly, and involves multiple steps that must be completed in a specific order. Real-time processing, which involves immediate processing of each transaction as it occurs, is better suited for activities that require immediate processing, such as online purchases or bank transactions.

Question 19

When an organization uses a separate checking account to handle payroll transactions, it is easier to account for the payroll transactions and to distinguish them from cash disbursements for other business purposes.

Accepted Answer

By using a separate checking account for payroll transactions, it ensures that these transactions are easily tracked, documented and accounted for separately, which makes the accounting process more efficient and less prone to errors. It also makes it easier to reconcile the account, detect fraudulent activities or errors, and file payroll reports accurately.

Question 20

The electronic timekeeping devices accumulated data throughout the period and automatically calculate batch totals.At this time, the data batches are not able to prepare the paychecks or the payroll register.

Accepted Answer

The answer of The electronic timekeeping devices accumulated data throughout...

Quiz 10: Expenditures Processes and Controls Payroll and Fixed Assets