Chap 2 Quiz

Question 1

Personnel in certain full-time occupations are classified as ________ instead of independent contractors.

Multiple Choice

• Non-statutory workers
• Executive workers
• Statutory employees
• Contract employees

Answer 1

Statutory employees

Question 2

The format of the Employee Information Form is standardized by federal law.

T/F

Answer 2

False

No federal law standardizes the employee information form.

Question 3

A ___________ employee is eligible for company benefits whereas a ________ employee is not.

Multiple Choice

• independent contractor; temporary
• temporary; part-time
• leased; temporary
• temporary; leased

Answer 3

leased; temporary

Question 4

Which pay frequency has 12 pay periods?

Multiple Choice

• Daily
• Monthly
• Semimonthly
• Weekly

Answer 4

Monthly

Question 5

The IRS stipulates that no more than ____ percent of a company’s employees may be leased employees.

Multiple Choice

• 10%
• 20%
• 30%
• 40%

Answer 5

20%

Question 6

Ibrahim is the payroll accountant for a firm. He notes that the firm has hired a new employee. What forms must he collect from the new employee?

Multiple Choice

• W-4 and I-8
• W-3 and I-9
• W-2 and I-9
• W-4 and I-9

Answer 6

W-4 and I-9

Question 7

FATCA enforcement has been difficult because the Internal Revenue Service relies on ________ for reporting purposes.

Multiple Choice

• intermediaries (e.g., banks)
• foreign countries
• personal income tax returns
• employers and employees

Answer 7

intermediaries (e.g., banks)

Question 8

Stan works for a bakery for which part of his compensation is based on the decoration of wedding and other specialty cakes. His compensation has a ________ element.

Multiple Choice

• Nonexempt
• Piece-rate
• Performance incentive
• Commission

Answer 8

Piece-rate

Question 9

Which aspect of internal controls for payroll relates to the Sarbanes-Oxley Act?

Multiple Choice

• Protecting employee retirement funds
• Cross-training employees and altering duties
• Limiting the number of employees authorized to disburse payroll
• Ensuring the complexity of the audit trail

Answer 9

Cross-training employees and altering duties

Question 10

Mako was an employee of the Jaeger Corporation. After she voluntarily terminated employment, auditors discovered evidence of fraudulent activity that they traced to her. Mako’s records must be retained:

Multiple Choice

• For 15 years.
• Indefinitely.
• For 10 years.
• For 20 years.

Answer 10

Indefinitely