Test Bank for Payroll Accounting 2019 5th Edition By Landin

Test Bank for Payroll Accounting 2019 5th Edition By Landin

Payroll Accounting 2019, 5e (Landin)

Chapter 1   Payroll Practices and System Fundamentals

1) Internal payroll reports are used to inform a firm’s managers and decision-makers about labor costs.

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Identify Legislation That Pertains to Payroll and Business

Learning Objective:  01-01 Identify Legislation That Pertains to Payroll and Business

Bloom’s:  Understand

AACSB:  Communication

Accessibility:  Keyboard Navigation

2) The Lilly Ledbetter Act of 2009 was the first act that mandated equal pay for men and women who perform identical tasks.

Answer:  FALSE

Explanation:  The Equal Pay Act of 1963 was the first legislation that addressed pay equity.

Difficulty: 1 Easy

Topic:  Identify Legislation That Pertains to Payroll and Business

Learning Objective:  01-01 Identify Legislation That Pertains to Payroll and Business

Bloom’s:  Remember

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

3) The Age Discrimination in Employment Act (ADEA) prohibits discrimination in employment practices for workers who are older than age 50.

Answer:  FALSE

Explanation:  ADEA protects workers who are older than age 40.

Difficulty: 1 Easy

Topic:  Identify Legislation That Pertains to Payroll and Business

Learning Objective:  01-01 Identify Legislation That Pertains to Payroll and Business

Bloom’s:  Remember

AACSB:  Diversity

Accessibility:  Keyboard Navigation

4) Payroll-related legislation often reflects emerging issues in societal evolution.

Answer:  TRUE

Difficulty: 2 Medium

Topic:  Identify Legislation That Pertains to Payroll and Business

Learning Objective:  01-01 Identify Legislation That Pertains to Payroll and Business

Bloom’s:  Analyze

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

5) The Worker’s Compensation Act of 1935 legislated the payment of worker’s compensation insurance.

Answer:  FALSE

Explanation:  No federal legislation exists regarding the payment of worker’s compensation insurance.

Difficulty: 1 Easy

Topic:  Discuss the Legal Framework Specific to Payroll Accounting

Learning Objective:  01-02 Discuss the Legal Framework Specific to Payroll Accounting

Bloom’s:  Understand

AACSB:  Communication

Accessibility:  Keyboard Navigation

6) The ethical principle of due care pertains to the upholding of rights and justice of stakeholders.

Answer:  FALSE

Explanation:  The principle of due care pertains to the accountant’s professional competence.

Difficulty: 2 Medium

Topic:  Discuss the Ethical Guidelines for Payroll Accounting

Learning Objective:  01-03 Discuss the Ethical Guidelines for Payroll Accounting

Bloom’s:  Apply

AACSB:  Ethics

Accessibility:  Keyboard Navigation

7) Payroll accounting systems may involve an integrated software package that contains business-planning tools.

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Identify Contemporary Payroll Practices

Learning Objective:  01-04 Identify Contemporary Payroll Practices

Bloom’s:  Understand

AACSB:  Technology

Accessibility:  Keyboard Navigation

8) The IRS uses EINs to track employers for tax purposes.

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Identify Contemporary Payroll Practices

Learning Objective:  01-04 Identify Contemporary Payroll Practices

Bloom’s:  Remember

AACSB:  Communication

Accessibility:  Keyboard Navigation

9) The payroll volume tends to be greater for small companies than for large businesses.

Answer:  FALSE

Explanation:  Payroll volume is lower for small companies because the number of employees is smaller, which leads to a lower number of payroll transaction.

Difficulty: 1 Easy

Topic:  Compare Payroll Processing Options for Different Businesses

Learning Objective:  01-05 Compare Payroll Processing Options for Different Businesses

Bloom’s:  Understand

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

10) The use of outsourced payroll relieves employers of the responsibility for payroll accuracy.

Answer:  FALSE

Explanation:  The employer is responsible for payroll accuracy regardless of who processes it.

Difficulty: 2 Medium

Topic:  Compare Payroll Processing Options for Different Businesses

Learning Objective:  01-05 Compare Payroll Processing Options for Different Businesses

Bloom’s:  Analyze

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation