Chapter 14—The Human Resources Process (HR) Management and
Payroll Processes Key
1. A job time record is used to calculate the gross amount of each employee’s pay.
2. Attendance time records reflect the start and stop times on specific jobs to allow the distribution of payroll
costs to jobs in process (or to other accounts).
3. Attendance time records show the time periods that employees are in attendance at the job site and available
for work.
4. The imprest payroll account should show a zero balance after both the debit for gross pay paid to employees
and the credit for gross pay distributed to jobs in process or to expense categories has been posted to the
account.
5. An imprest payroll bank account is one to which cash transfers are made in an amount exactly equal to the
amount of payroll checks cashed.
6. Human capital management is the process of managing how people are hired, trained, assigned, motivated
and retained.
7. The human capital management process is an interacting structure of people equipment, activities, and
controls that supports the repetitive work routines and decision needs of the HR department.
8. The payroll process maintains records containing data for payroll taxes and fringe benefits, attendance
reporting, timekeeping, and paying employees for work performed.
9. The manager of safety, health services and benefits usually reports to the controller.
10. The manager of employee and industrial relations helps to settle employee complaints and grievances.
11. The manager of safety, health services and benefits has key functions that include plans and forecasts of an
organization’s short-term and long-term HR needs.
12. Systems that allow employees to access their personnel information and related functions are known as
human resources self-service systems.
13. Data in the employee/payroll master data originates in HR and payroll.
14. Factory workers record attendance and job time at a payroll service bureau.
15. The skills inventory data maintains data concerning an organization’s short-term and long-term staffing
requirements.
16. The labor-force planning data catalogs each employee’s set of relative skills.
17. HR self-service systems can reduce HR and payroll-related operational costs up to 85%.
18. The chief financial officer usually has direct supervision of the treasurer and controller and indirect
supervision of the payroll supervisor.
19. The GL supervisor usually reports to the treasurer.
20. A payroll service bureau often makes tax and insurance payments for the client.
21. The general ledger supervisor is in charge of payroll preparation.
22. The cashier is in charge of payroll check disbursement.
23. The trigger for the payroll process “pay employees” is the payroll register.
24. The data flow between “prepare paychecks” and “prepare disbursement voucher” is the payroll register.
25. The employee/payroll master data is the central repository of data about people who work for an
organization.
26. The employee wage and tax statement is known as a W-4.
27. Annuities, pensions, and retirement pay are reported on Form 1099–P.
28. Wages taxable under FICA are reported on Form 941.
29. An electronic time management system is a computer based system that captures, stores, and reports time.
30. A company that specializes in rendering payroll services to client companies for a fee is a payroll service
bureau.
31. For good internal control, there should be a segregation of duties between personnel data
creation/modification, payroll preparation, and disbursement of the checks.
32. The control plan “use an imprest bank account” entails having paychecks distributed to employees by an
entity not otherwise involved in payroll processing.
33. In an imprest system, the bank account is reimbursed for the exact amount of the disbursements made from
the fund.
34. A payroll clearing account is a separate bank account used solely for payroll purposes. Funds are transferred
into the account to cover payroll checks to be issued.
35. Moving from bi-weekly to monthly payroll can reduce costs by 30 to 50 percent.
36. The process of preparing paychecks for hourly employees is triggered by which of the following data
flows?
37. Information for distributing labor charges to jobs, departments, or other accounts comes primarily from:
38. In a payroll system logical DFD, all of the following processes likely would provide updates to the general
ledger except for:
39. The control plan independent reconciliation of payroll bank account is directed primarily at achieving which
of the following control goals?
40. Which of the following activities related to payroll is not an effective control plan?
41. According to the text, what is the process of managing how people are hired, trained, assigned, motivated
and retained and presumes that employees are a strategic investment?
42. Which of the following began with the handling of payroll, personnel administration, and later added the
functions of recruiting and employee relations?
43. Which of the following recognized the importance of personnel in achieving organizational objectives, but
viewed personnel as something that could be controlled?
44. Which of the following emphasizes an individuals’ value to the organization, personnel development to
maximize the benefits that an individual can provide to the organization and retention of employees to ensure
that important skills are not lost?
A. human resource management
45. Which of the following is not part of the information provided by HR management to support management
decisions?
A. generating a variety of HR forms and documents
46. Which of the following is false regarding the payroll process?
47. The HR module in most ERP systems includes all of the following except:
A. cafeteria benefits administration
48. Including HR data within the enterprise system allows sharing of common data providing benefits except:
49. The key functions of planning and forecasting HR needs, analyzing jobs to determine required skills,
assisting in recruiting, and helping new hires adjust to their work environment is the job position of the manager
of:
A. personnel appraisal and development
50. The key functions of handling employee complaints and negotiating with unions is the job position of the
manager of:
51. The key functions of ensuring that the information needs of HR managers and staff workers are satisfied and
serving as the liaison between the IT department and the HR department is the job position of the manager of:
52. The key functions of assisting managers in setting rewards for good employee performance, helping line
managers provide training or take disciplinary action, and reducing employee turnover by helping workers
achieve their career goals is the job position of the manager of:
53. Which of the following is not one of the HR related events performed by the HR management process?
54. Inputs to the HR management process are provided by:
A. various departments
55. With an enterprise system, updates of employee/payroll master data is performed by:
56. In an HR management process, needs requests, supervisor review, employee termination, and employee
requests are approved by:
A. various departments
57. Payroll reports may be provided to all of the following except:
A. Unions
58. Which of the following data stores is updated when employees gain new on the job training?
59. Which of the following data stores is updated for job specifications?
60. The payroll supervisor usually reports directly to:
61. For good internal control an organization should segregate the duties of:
A. HR and payroll
62. Which of the following shows when employees are at work, may be maintained near the entrance of the
workplace and take the physical form of cards?
63. Which of the following shows start and stop times on specific job with the purpose of allowing the
distribution of payroll costs to work in process?
64. Which of the following is a data flow that generally goes to insurance companies?
65. Which of the following is a data flow that generally goes to government agencies?
A. attendance time records
66. Payroll processing is typically conducted in:
A. immediate mode
67. Payroll tax reports are initially remitted to:
68. Updates of the tax rates data are stored in:
69. What is the process that compares total hours of each worker as shown by the attendance record with the
hours reflected on the job time records for that employee?
70. What is the process that interfaces with the GL to provide the necessary journal entries for the distribution
of labor charges?
71. What is the process that is initiated by validated attendance time records?
A. accrue employer taxes
72. Which of the following is processed in batches?
73. Which of the following is processed in the immediate mode?
74. Which of the following is an example of processing the company’s payroll for a fee?
A. electronic time management
75. Which of the following has the inputs of attendance and work on specific jobs?
76. The payroll register is used to:
77. The approved payroll disbursement voucher is used to:
A. record time worked
78. Which of the following payroll-related frauds may involve non-existent employees?
79. Which of the following payroll-related frauds can have a direct impact on the organization’s insurance
company?
A. ghost employees
80. Employee fraud schemes in the area of reimbursement of expenses include all of the following except:
81. Which of the following control plans transfers the exact amount of funds necessary to reimburse the account
for payroll checks cashed?
A. approve attendance time data and job time data