1. Which form is used for Determination of Employee Work Status for Purposes of Federal
Employment Taxes and Income Tax Withholding?
A.
B.
C.
D.
Form I-9
Form SS-4
Form SS-5
Form SS-8
2. What amount must an independent contractor be paid for services rendered before an
employer is obligated to give them a 1099-MISC?
A.
B.
C.
D.
Once total reaches $600 or more
Total payments reach $600 or more for company’s fiscal year
Total payments reach $600 or more for calendar year
Any individual payment makes during calendar year exceeding $600
3. Qualified real estate agents and direct sellers are which of the following?
A.
B.
C.
D.
Statutory Employees
Statutory Nonemployees
Employees
Independent Contractors
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.
B.
C.
D.
Behavioral control
Financial control
Location of work
Relationship of the parties
5. Which of the following is not regulated by the FLSA?
A.
B.
C.
D.
Child labor
Overtime pay
Minimum Wage Rates
8 hour work day
6. Agent-drivers, commission-drivers and full-time life insurance salespersons are which of
the following?
A.
B.
C.
D.
Statutory Employees
Statutory Nonemployees
Employees
Independent Contractors
7. There are three parts of the ABC test, which is not one of them?
A.
B.
C.
D.
Business-unusual and/ or away
Risk of loss
Customarily independent contractor
Absence of control
8. Under the federal new hire reporting requirement how many days does an employer have
after hire date?
A.
B.
C.
D.
10 days
20 days
30 days
40 days
9. What is Form I-9 used for?
A.
B.
C.
D.
Application for Employer Identification Number
Determination of Employee Work Status
Application for IRS Individual Taxpayer Identification Number
Employment Eligibility Verification
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.
B.
C.
D.
Past IRS employment tax audit
Published IRS rulings
Place of work
Private letter rulings
11. What does FLSA stand for?
A.
B.
C.
D.
Federal Labor Standards Act
Fair Labor Standards Act
Federal Labor Standards Agency
Fair Labor Standards Agency
12. Which of the following is not covered under the FLSA?
A.
B.
C.
D.
Regulate how often employees must be paid
Mandates equal pay for equal work
Requires recordkeeping by employers
sets the minimum wage and overtime rates employees must receive for their work
13. Who enforces the Federal Wage-Hour Law?
A.
B.
C.
D.
Individual States
IRS
EEOC
DOL
14. Who enforces the equal pay provisions?
A.
B.
C.
D.
Individual States
IRS
EEOC
DOL
15. Which is not one of the White Collar Exemption?
A.
B.
C.
D.
Administrative
Executive
Management
Professional employees
16. For overtime pay. Which one is included in the regular rate?
A.
B.
C.
D.
Discretionary bonuses
Nondiscretionary bonuses
Gifts
Reimbursed expenses
17. For calculation of overtime pay. Which one is not included in the regular rate?
A.
B.
C.
D.
Supplemental disability payments
On-call pay
Retroactive pay
Vacation pay
18. A computer professional must be paid at least what per hour to be exempt from overtime
requirements under the FLSA?
A.
B.
C.
D.
Minimum wage per hour
21.55 per hour
27.63 per hour
29.67 per hour
19. Ryan’s regular workweek is 37.50 hours and he is paid biweekly. Ryan worked 38 hours
in the first week and worked 45 hours in the second. How many hours are paid at the
overtime rate?
A.
B.
C.
D.
2.50
5
7.5
8
20. What is the federal minimum wage rate?
A.
B.
C.
D.
4.25
5.85
6.55
7.25
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
22. What is the time limit on filing an FLSA complaint with the Wage and Hour Division?
A.
B.
C.
D.
1 or 2 years
2 or 3 years
3 or 4 years
4 or 5 years
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
employer in the line of business in which the employee works
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
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 employer in the line of business in
which the employee works
25. A “Qualified employee discount” 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 employer in the line of business in
which the employee works
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. 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 employer in the line of business in
which the employee works
27. What is the maximum amount excluded from income by law in 2014 for employerprovided parking?
A.
B.
C.
D.
$125.00
$130.00
$245.00
$250.00
28. What is the maximum amount excluded from income by law in 2014 for Transit passes?
A.
B.
C.
D.
$125.00
$130.00
$245.00
$250.00
29. What is the maximum per round trip an employee may receive under commuting
valuation method?
A.
B.
C.
D.
$6.00
$3.00
$1.50
0.00
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
31. An employee’s date of birth is April 15, 1976. What age would be used for calculating
group term life insurance for January 2014?
A.
B.
C.
D.
27
28
37
38
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.
B.
C.
D.
Form W-4
Form W-4P
Form W-4S
Form W-5
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.
B.
C.
D.
Form W-2D
Form W-2
Form 1099-MISC
Form 1099-R
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
35. The IRS approved rate for employer provided fuel for 2014 is?
A. 5 cents per mile
B. 5.5 cents per mile
C. 55.5 cents per mile
D. 56.5 cents per mile
36. Which of the following is not a recordkeeping requirement for business use of company
provided vehicles?
A.
B.
C.
D.
Trips mileage
Trips date
Trips usage of car phone
Business purpose of the trip
37. Wages paid after the year of death are report on which of the following form?
A.
B.
C.
D.
Form W-2D
Form W-2
Form 1099-MISC
Form 1099-R
38. The IRS standard business mileage rate for 2014 is?
A.
B.
C.
D.
5.5 cents per mile
51 cents per mile
56 cents per mile
56.5 cents per mile
39. What are the two types of deductible moving expenses?
A. Transportation of household goods and expenses of moving employee (and
family) including meals
B. All expenses of the move are deductible
C. Transportation of household goods and expenses of moving employee (and
family) not including meals
D. Hotel, meals and mileage
40. Employee’s personal use of a company provided vehicle is generally a taxable benefit.
Which of the following is not one of the three special valuation methods used to determine
the taxable amount?
A. Annual lease value
B. Commuting
C. Parking
D. Vehicle cents per mile
41. Under the “fixed date” method, an advance for substantiated business travel expenses
can be provided no more than how many days before an expense is incurred?
A.
B.
C.
D.
10 days
30 days
60 days
120 days
42. An employee has three children and her dependent care expenses are $7,500 for 2014.
The employer reimburses her the full $7,500 in 2014. How much if any is taxable?
A.
B.
C.
D.
$0
$300 (only amount above 2,400 per child)
$2,500
$7,500
43. What is the maximum amount of employer provided group term life insurance that can
be excluded from an employee’s income?
A.
B.
C.
D.
One times their annual salary
$2,000
$50,000
$100,000
44. Which of the following is a “de minimis” fringe and is excluded from taxable earnings?
A.
B.
C.
D.
$25 gift certificate for Rainbow Foods
$25 Target gift certificate
$25 company check
Gift certificate (e.g. Ham, Turkey)
45. Which of the following is a non-taxable moving expense?
A.
B.
C.
D.
Meal
Pre-move househunting
Packing
Temporary living
46. Under the IRC, which section regulates cafeteria plans?
A.
B.
C.
D.
123
125
127
129
47. What is the maximum amount for 2014 that an employee may elect to defer to a 401 (k)
or 403 (b) plan?
A.
B.
C.
D.
$15,000
$15,500
$17,000
$17,500
48. What is the maximum amount for 2014 that an employee may elect to defer to a 457
plan?
A.
B.
C.
D.
$15,500
$17,000
$17,500
$19,500
49. What is the maximum amount for 2014 that an employee may elect for FSA dependent
care?
A.
B.
C.
D.
$2,400
$5,000
$7,500
No Limit
50. An employer with 120 participants offering a cafeteria plan must annually file what
form?
A.
B.
C.
D.
Suspended in 2002 no filing needed
Form 5500 C/R
Form 5500
Form 5550 C/R
51. Which of the following can not be part of a cafeteria plan?
A.
B.
C.
D.
Group-term life insurance
Qualified adoption assistance
Cash
Medical Savings Accounts
52. Under a cafeteria plan, pretax contribution to a 401 (k) are subject to what federal taxes?
A.
B.
C.
D.
FICA, FUTA and FIT
FICA and FUTA
FICA
None
53. CODA stand for what?
A.
B.
C.
D.
Cash or Deferred Account
Cost of Dependent Adoption
Cash or Deferred Arrangement
Cafeteria or Deferred Account
54. Who is at risk of forfeiture in a cafeteria plan health care FSA?
A.
B.
C.
D.
No one is at risk
Employee only
Employer only
Both employee and employer
55. What does FSA stand for?
A.
B.
C.
D.
Federal Savings Accounts
Flexible Spending Arrangement
Fair Standards Act of 1985
Federal Service Agency
56. Under a 125 plan pretax deductions are subject to what federal taxes?
A.
B.
C.
D.
FICA, FUTA and FIT
FICA and FUTA
FICA
None
57. State and local government employees would participate in which of the following
deferred plans?
A.
B.
C.
D.
401 (k)
403 (b)
408
457
58. Public schools employees would participate in which of the following deferred plans?
A.
B.
C.
D.
401 (k)
403 (b)
408
457
59. Which of the following employer stock purchase plans might be included in a qualified
401 (k) plan?
A.
B.
C.
D.
ERISA
ESOP
IRA
SEP
60. What does ADP stand for?
A.
B.
C.
D.
Automatic Deposited Paycheck
Automated Data Process
Actual Defined Pension
Actual Deferral Percentage
61. The defined benefit plans are generally administer by which department?
A.
B.
C.
D.
Human Resources
Payroll
Employment
Benefits
62. The Family and Medical Leave Act of 1993 is administered and enforced by what
department?
A.
B.
C.
D.
Internal Revenue Service
Fair Labor Standards Act
Department of Labor
Equal Employment Opportunity Commission
63. Which of the following may not be regulated by state law?
A.
B.
C.
D.
How often employees must be paid
What employers must do with unclaimed paychecks
How soon employees must be paid after their employment is terminated
What minimum wage an employee must receive
64. What day of the week occurs 53 times in 2014?
A.
B.
C.
D.
Monday
Tuesday
Wednesday
Thursday
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
66. Which of the following is not a disadvantage of the direct deposit system to the
employer?
A.
B.
C.
D.
Direct deposit is not a paperless system
Cannot dictate the bank that the employee uses
Do not have to file/store cashed checks and related documents
Loss of interest on payroll funds before paychecks clear
67. What are escheat laws?
A.
B.
C.
D.
Federal laws governing direct deposit
Federal laws governing unclaimed wages as abandoned property
State laws governing direct deposit
State laws governing unclaimed wages as abandoned property
68. An employee is married and has three children ages 5, and 10, what is the maximum
income the employee can earn to be eligible for EIC in 2014?
A.
B.
C.
D.
$35,353
$40,352
$40,363
No AEIC in 2014
69. Request for Taxpayer Identification Number and Certification is submitted on which
form?
A.
B.
C.
D.
Form SS-4
Form SS-8
Form W-7
Form W-9
70. What is the 2014 social security wage base?
A.
B.
C.
D.
$110,400
$113,700
$117,000
No maximum amount
71. Verifying Social Security Numbers. The SSA has three verification methods available to
employers. Which of the following is not one of them?
A.
B.
C.
D.
Fax
Phone
Paper list
Magnetic tape
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.
B.
C.
D.
Form SS-4
Form SS-5
Form SS-8
Form SSA-7004
73. When supplemental wage payment is paid separately or clearly indicated when add to
regular wages. What is the flat withholding rate for 2014?
A.
B.
C.
D.
25%
27%
28%
30%
74. What is the percentage on “backup withholding” for 2014?
A.
B.
C.
D.
25%
27%
28%
35%
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.
B.
C.
D.
Form W-9
Form W-5
Form W-2
Not available in 2014
76. Which of the following would not be a supplemental wage payment?
A.
B.
C.
D.
Vacation pay
Backpay awards
Retroactive pay
Bonuses
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
D. Withhold final check from employee until all company badges and keys are
returned
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.
B.
C.
D.
Married with 3 allowances
Married with 0 allowances
Single with 4 allowances
Single with 0 allowances
79. Generally an employer must file Form 940 by what date, of the year after the FUTA
liability was incurred?
A.
B.
C.
D.
January 31
February 28
April 1
April 30
80. What is the FUTA taxable wage base for 2014? It is also the SUI minimum taxable
wage base.
A.
B.
C.
D.
$7000
$7500
$8000
$9000
81. What is the effective FUTA tax rate for 2014?
A.
B.
C.
D.
.6%
.8%
5.4%
6.0%
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
83. How many weeks can a terminated employee collect unemployment without filing an
extension?
A.
B.
C.
D.
6 Months
26 weeks
39 weeks
52 weeks
84. Which of the following is not one of methods used to determine an employer’s
unemployment insurance experience rating?
A.
B.
C.
D.
Benefit ratio
Benefit-wage ratio
Payroll ratio
Reserve ratio
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.
86. What is the credit percentage if an employer receives a full credit on FUTA for 2014?
A.
B.
C.
D.
.6%
.8%
5.4%
6.0%
87. Employers pay FUTA tax on their employee’s wages of $7,000 at a rate of 6.0%, What
is the federal state credit that employers receive for paying state SUI on time?
A.
B.
C.
D.
There is no credit
.6%
5.4%
.8%
88. Employers are assigned one of two depositor status classifications for Payroll Tax
Deposit Rules. Which of the following is correct?
A.
B.
C.
D.
Quarterly or monthly
Monthly or weekly
Monthly or semiweekly
Monthly or semimonthly
89. What is the lookback period for calendar year 2014 for Payroll Tax Deposit Rules?
A.
B.
C.
D.
July 1, 2012 - June 30, 2013
January 1, 2012 - December 31, 2012
Company previous fiscal year
Lookback period is 12 months
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
91. The shortfall rule allows an employer to deposit what percentage of their payroll tax
liability without a penalty?
A.
B.
C.
D.
Must be 100%
98%
95%
90%
92. Which of the following form is use to report backup withholding?
A.
B.
C.
D.
Form 940
Form 941
Form 941c
Form 945
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
94. How long must an employer keep undeliverable copies of employee’s Form W-2?
A.
B.
C.
D.
Three years
Four years
Five years
Seven years
95. An employee is terminated on 7/1/14. The following week a request in writing was
received requesting his 2014 Form W-2. How long does the employer have to send it out?
A.
B.
C.
D.
10 days of the request
20 days of the request
30 days of the request
January 31, 2015
96. Who would use Form 941-M?
A.
B.
C.
D.
Semiweekly depositors
Monthly depositors
Both A and B
Employers that fail to withhold or deposit taxes or file returns on time
97. Which of the following is used to deposit withheld federal income and employment
taxes?
A.
B.
C.
D.
Form 8809
Form 941
Form 940
EFTPS
98. All 2014 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.
B.
C.
D.
January 31
By the end of February
March 31
April 1
99. If an employer mailed their payroll tax deposits through the U.S. Postal Service, the
deposits would be considered timely if postmarked at least how many days before due date?
A.
B.
C.
D.
One day
Two days
Has to be receive by due date or penalties will apply
As long as it has the due day or earlier no penalties apply
100. When are employers required to mail copies of Form W-4 to the IRS?
A.
B.
C.
D.
Claims more than 10 withholding allowances
Claims exempt from withholding
IRS request it in writing
Claims 10 withholding allowances and is single
101. When is an employee not subject to FICA tax?
A.
B.
C.
D.
Over age of 70
Over age of 65
Over age of 59 1/2
None of the above
102. What does OASDI stand for?
A.
B.
C.
D.
Old Age Survivors and Disability Insurance
Old Age Survivors and Disability Income
Old Age Severance and Disability Insurance
Old Age Severance and Disability Income
103. Non qualified plans go in which box on the Form W-2?
A.
B.
C.
D.
Box 8
Box 9
Box 10
Box 11
104. In which box on Form W-2 should allocated tips be reported?
A.
B.
C.
D.
Box 1
Box 1, 3 and 5
Box 1, 5 and 7
Box 8
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.
B.
C.
D.
Box 1 and 10
Box 1, 3 and 5
Box 10
Box 1, 3, 5 and 10
106. Group term life insurance over $50,000 is reported in Box 12 on Form W-2. What
code is also included?
A.
B.
C.
D.
Code A
Code C
Code L
Code P
107. The IRS will send an employer a federal tax levy on which of the following form?
A.
B.
C.
D.
Form 668-D 4 part
Form 668-D 6 part
Form 668-W 4 part
Form 668-W 6 part
108. Who sets the maximum amount that can be withhold from an employee’s wages for
child or spousal support?
A.
B.
C.
D.
IRS
FLSA
CCPA
Individual States
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.
B.
C.
D.
50%
55%
60%
65%
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.
B.
C.
D.
IRS
FLSA
CCPA
Individual States
111. What is the maximum amount an employee’s disposable earnings that can be garnished
to pay a debt?
A.
B.
C.
D.
25%
30%
65%
75%
112. IRC 170(f)(8), which prohibits taxpayers from deducting charitable contributions of
what amount, without substantiation of the gift and any substantial goods or services
received in return?
A. $100 or more per payperiod
B. $100 or more per year
C. $250 or more per payperiod
D. $250 or more per year
113. Which of the following is subtracted from earnings to calculate disposable earnings?
A.
B.
C.
D.
All active deductions
All deductions required by law
Union Dues
Life insurance premiums
114. Which of the following requires an employee’s signature?
A.
B.
C.
D.
IRS levy
Child support withholding order
Federal taxes
Company loan repayment deduction
115. If all the following were received at the same time which one would take the highest
priority?
A.
B.
C.
D.
Child support
Student Loans
Garnishments
IRS tax levy
116. How long must an employer retain an employees W-4
A.
B.
C.
D.
Two years after due date of the tax return
Three years after due date of the tax return
Four years after due date of the tax return
Five years after due date of the tax return
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.
B.
C.
D.
Two years
Three years
Four years
Five years
118. FLSA requires certain records to be kept by all covered employers for all employees
and retained for how many years?
A.
B.
C.
D.
Two years
Three years
Four years
Two or three years
119. Form I-9 must be made available for inspection by the Department of Labor within
how many days of a request?
A.
B.
C.
D.
Three days
Four days
Five days
As soon as they arrive
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
121. Which of the following is not an expense account?
A.
B.
C.
D.
Wages payable
Employer paid benefit costs
Maintenance for computers
Office supply costs
122. Of the following accounts which does not have a normal balance as a debit?
A.
B.
C.
D.
Income Distributed
Expense
Asset
Equity
123. Of the following accounts which is not a liability account?
A.
B.
C.
D.
Accounts payable
Contributions owed to a company benefit plan
Employer share of payroll taxes
Union dues deducted from pay but not yet paid to union
124. Which of the following account does not have a normal balance as a credit?
A.
B.
C.
D.
Revenue
Expense
Contributed Capital
Equity
125. Which of the following is not part of the balance sheet?
A.
B.
C.
D.
Net earnings
Deferred assets
Long term liabilities
Plant, property and equipment
126. Of the following which is not on the income statement?
A.
B.
C.
D.
Shareholder’s equity
Earnings per share
Nonoperating expenses
Gross margin on sales
127. Which of the following is classified as a record of original entry?
A.
B.
C.
D.
General ledger
Trail balance
Journal
Posting
128. Entering an amount on the left side of an account is called?
A.
B.
C.
D.
Increasing a revenue account
Decreasing a liability account
Debiting the account
Crediting the account
129. A journal entry containing more than one debit or more than one credit is called?
A.
B.
C.
D.
T-account
Compound entry
Double entry
Transaction
130. An accounting period is which of the following?
A.
B.
C.
D.
Month
Quarter
Year
Any length of time covered by an income statement
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
D. Result of subtracting liabilities from assets
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
D. Purchase of goods or services consumed during
the accounting period
D. Result of subtracting liabilities from assets
133. The definition of equity is:
A.
B.
C.
D.
Debts of a business that have yet to be paid
Resources acquired by a business that are consumed by the business
Purchase of goods or services consumed during the accounting period
Result of subtracting liabilities from assets
134. For an expense that was accrued for last month what must an accounting department
do the next month?
A.
B.
C.
D.
Adjustment entry
Nothing
An accrual reversal
Debit cash, credit expense
135. What is the definition of an asset?
A.
B.
C.
D.
Debits of a business that have yet to be paid
Resources acquired by businesses that are consumed by the business
Purchase of goods or services, or costs incurred on a one time or short term basis
Result of subtracting liabilities from assets
136. What does it mean when two systems are interfaced?
A.
B.
C.
D.
Printers, modems, external drive
Data reside on a server
Powerful personal computers
Sharing data needed by both
137. What is a peripheral?
A.
B.
C.
D.
Printers, modems, external drive
Data reside on a server
Powerful personal computers
Sharing data needed by both
138. What is an environment called that can transmit information over long distances at
slower transmission speeds using telephone lines?
A.
B.
C.
D.
Network
Modem
LAN
WAN
139. What is not a disadvantage of a service bureau?
A.
B.
C.
D.
Possibly high variable costs
Reduction in processing delays
Responsibility for filing errors
Little time for change
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.
B.
C.
D.
Network
Modem
LAN
WAN
141. What is not an advantage of a service bureau?
A.
B.
C.
D.
New services can be added
Fewer research problems
Control over security
Low processing costs
142. What is not a disadvantage of an in-house microcomputer network?
A.
B.
C.
D.
Keep system up to date
Data sharing
Network manager needed
Initial installation cost
143. What is not an advantage of off the shelf software?
A.
B.
C.
D.
Small employers only
Low cost
Ease of use
Use it right away
144. What is not a disadvantage of vendor supplied software packages?
A.
B.
C.
D.
Improper fit
Specific needs may not be met
User group networking
Training
145. What is not a advantage of customized software?
A.
B.
C.
D.
Update responsibility
Increased flexibility
Control
Special needs
146. What is not part of selecting a computerized payroll system?
A.
B.
C.
D.
Analyze
Build a project team
RFP
Putting controls into the process
147. Which of the following is not part of a system edit?
A.
B.
C.
D.
Report with negative net pay
Report with active employees with no pay
Report with union dues payable
Report with employees over 40 hours
148. What should not be a part of the system documentation?
A.
B.
C.
D.
Schedules
Adjustment and corrections entry
Reports
Company policies
149. Which of the following should be part of a disaster recovery plan?
A.
B.
C.
D.
Arrange office equipment rental
Keep backup files off premises
Communicate the plan
All the above
150. Which internal control method requires employees to show identification before
getting paid, also known as stopping phantom employees?
A.
B.
C.
D.
Rotating jobs
Physical payouts
System edits
Verifying
151. What is not part of the system security?
A.
B.
C.
D.
System access
Backing up data
Checking for adequate power
Secure files
152. There are four different management styles according to Hersey and Blanchard. Which of the following is
known as high task/high relationship?
A.
B.
C.
D.
Manager controls the job and procedures; and will coach employees
Little control sought by the manager; good deal of mutual trust
Most jobs delegated; little personal contact
Controls staff with little feedback
153. Which of the following management theory characterizes the Japanese style?
A.
B.
C.
D.
Theory W
Theory X
Theory Y
Theory Z
154. Which of the following is not a planning concern?
A.
B.
C.
D.
Evaluating the costs
Delegating tasks
Defining the objectives
Defining time
155. Which of the following is a basic management skill that involves setting goals?
A.
B.
C.
D.
Staffing
Planning
Controlling
Directing
156. A Manager should never delegate to his or her subordinate which of the following?
A.
B.
C.
D.
Responsibility
Authority
Accountability
Reporting
157. Which of the following is not currently a popular management theory?
A.
B.
C.
D.
Theory Y
Theory X
Theory W
Situational Leadership
158. Which management skill is have the right person with the right job?
A. Staffing
B. Planning
C. Controlling
D. Directing
159. A manager who takes a negative view of his or her employees is best categorized as
what management theory?
A.
B.
C.
D.
Theory Y
Theory X
Theory W
Theory Z
160. Of the following which is not one of the three “P” of management?
A.
B.
C.
D.
Payroll
People
Process
Proficiency
161. Communicating, motivating and providing guidance to ones employees belongs to
which of the management skill?
A.
B.
C.
D.
Staffing
Planning
Controlling
Directing
162. During the planning and organizing process which of the following activities need not
be include?
A.
B.
C.
D.
Subtasks
How each part is processed
Goals and objectives
The time frame
163. There are four communication skills managers must possess when directing employees
which is not one of them?
A.
B.
C.
D.
Providing feedback
Coaching
Listening
Controlling Performance
164. There are many different types of performance evaluation systems and formats and there are several
elements that are generally found within them. Which is not one of them?
A. Employees who disagree with the evaluation are allowed to challenge it
B. There are written guidelines for administering the evaluation system
C. They make subjective conclusions in very broad terms
D. Communicated clear and in writing to employees
165. Time management has four combinations of time categories. Which of the following
are you in a crisis mode and putting out fires?
A.
B.
C.
D.
Not Urgent but Important
Not Urgent and Not Important
Urgent and Important
Urgent but Not Important
166. Time management has four combinations of time categories. A manager’s goal should
be to prioritize duties and responsibilities so enough time is spent in which quadrant also
known as Not Urgent but Important?
A. Quadrant 1
B. Quadrant 2
C. Quadrant 3
D. Quadrant 4
167. There are four different management styles according to Hersey and Blanchard. Which
of the following is known as supporting or as low task/high relationship?
A.
B.
C.
D.
Manager controls the job and procedures; and will coach employees
Little control sought by the manager; good deal of mutual trust
Most jobs delegated; little personal contact
Controls staff with little feedback
168. Stephen Covey’s principle centered leadership has four interdependent dimensions
which of the following is one of them?
A.
B.
C.
D.
Security
Guidance
Wisdom
All of the above
169. There are four different management styles according to Hersey and Blanchard. Which
of the following is known as Directing or as high task/low relationship?
A.
B.
C.
D.
Manager controls the job and procedures; and will coach employees
Little control sought by the manager; good deal of mutual trust
Most jobs delegated; little personal contact
Controls staff with little feedback
170. What skill is not a management skill?
A.
B.
C.
D.
Reporting
Strategic planning
Staffing
Documentation
171. A U.S. citizen or resident alien who lives and works outside the U.S. is called?
A.
B.
C.
D.
Foreign employee
Expatriate
Alien
Employee
172. U.S. and foreign countries prevent double social security and Medicare taxation of
U.S. employees working abroad and aliens working in the U.S.. What is it called?
A.
B.
C.
D.
Treaty benefits
Tax treaty impact
Tax equalization plans
Totalization agreements
173. Aliens who are not eligible for a social security number and must file a tax or
information return, would request from the IRS an Individual Taxpayer Identification
Number (ITIN). What form number is it?
A.
B.
C.
D.
W-7
W-9
SS-5
SS-9
174. Nonresident aliens must do which of the following when completing a Form W-4?
A.
B.
C.
D.
Check only “Single” on line 3
Claim only one withholding allowance on line 5
Must write “NRA” above the dotted line in line 6
All the above
175. If a person has a “Green Card” which visa number is it?
A.
B.
C.
D.
L-1
I-551
P-1
H-1
176. Which of the following would not generally be a factor indicating an employee’s
domicile?
A.
B.
C.
D.
Physical presence
Where an employee votes
Where the employee’s immediate family lives
State issuing the employee’s driver’s license
177. What amount of foreign earned income can be excluded from a U.S. citizens or
resident alien gross income, when working outside the U.S.?
A.
B.
C.
D.
$99,200
$97,600
$95,100
$91,500
178. What visa would a student have?
A.
B.
C.
D.
T-1
S-1
Q-1
F-1
179. Which of the following would not qualify as a foreign country under the 911 exclusion?
A.
B.
C.
D.
Canada
Spain
Mexico
Guam
180. On what income are US citizens and resident aliens subject to federal income tax?
A.
B.
C.
D.
World-wide income
U.S income
Foreign income
only amount over 99,200