EXAMINATION QUESTIONS
To aid instructors using Payroll Accounting, we have provided a section of examination
questions in this manual. The section contains true-false and multiple-choice questions
for Chapter 1, with the addition of short problems for Chapters 2, 3, 4, 5, and 6, ar-
ranged according to the presentation of the subject matter within these chapters of the
textbook.
There is a sufficient number of test questions so that you may vary your examina-
tions from semester to semester or prepare different examinations for each section of
the course you may be teaching. Each of the true-false and multiple-choice questions is
preceded by a letter answer to the question and a page reference to the textbook page
upon which the answer may be found.
CHAPTER 1
True-False Questions
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Wage and Hour Law.
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employees of the provisions of the law.
All states have set their minimum wage to be the same as the federal
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government.
Under the Federal Insurance Contributions Act, the Medicare portion
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of the tax is only paid by the employer.
The FLSA provides health insurance for the aged and disabled
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(Medicare).
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used for paying state and federal administrative expenses of the un-
employment program.
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ings from self-employment derived by an individual from any trade or
business.
Each state imposes an income tax on employees that is 2 percent of
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gross wages.
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in their state.
The Fair Labor Standards Act is commonly known as the Federal
E–2 Chapter 1/Examination Questions
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employer must have 15 or more workers.
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dismissal.
T 13.
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By the use of executive orders, the federal government has banned
discrimination in employment on government contracts.
Employers not subject to Title VII coverage may come within the scope
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of the Civil Rights Act by reason of a contract or subcontract involving
federal funds.
T 15.
Under the Civil Rights Act of 1964, the U.S. government is classified
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as an exempt employer.
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ment Act provides for all workers over 40 involves executives who are
65 or older and who have held high policy-making positions during the
two-year period prior to retirement.
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onciliation Act, every employer is required to report the name, address,
and social security number of each new employee to the appropriate
state agency.
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F 19.
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documents.
In order for the Walsh-Healey Public Contracts Act to protect laborers
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for contractors who furnish materials to any agency of the United
States, the contract amount must be at least $10,000.
F 21.
Under FMLA, the time off must be used in one uninterrupted period of
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time.
Under the Family and Medical Leave Act, employers can exempt an
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employee who has not worked for the employer for at least 1 year and
has worked for the company at least 1,250 hours in the last year.
F 23.
FUTA was designed to ensure that workers who are covered by pen-
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sion plans receive benefits from those plans.
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retirement fund in the event they are terminated before the normal
retirement age.
T 11.
One of the provisions of coverage of the Civil Rights Act is that the
Examination Questions/Chapter 1 E–3
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after reaching age 21 or completing one year of service, whichever is
later.
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years or gradually over six.
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employees.
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cording to the different degrees of danger in various classes of jobs
and employers’ accident experience rate.
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ployees absent from their jobs due to illness, accident, or disease not
arising out of their employment.
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that the new employee can be properly added to the payroll.
Employment application forms are usually discarded when the appli-
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cant is hired.
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allowed on application forms when these are bona fide occupational
qualifications for a job.
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by the IRS.
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must be notified in writing by the employer that such a report is being
sought.
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files.
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employee.
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the amount of remuneration, the deductions, and the net amount paid
for each pay period.
The amounts needed for the payroll entries in the journal come from
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the employee’s earnings record.
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recent years.
E–4 Chapter 1/Examination Questions
Multiple-Choice Questions
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a. Fair Labor Standards Act
b. Federal Income Tax Act
c. Federal Insurance Contributions Act
d. Federal Unemployment Tax Act
e. Fair Employment Laws
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a. Federal Income Tax Law
b. Federal Old-Age and Survivors’ Trust Fund
c. Medicare
d. Self-Employment Contributions Act
e. All are part of the social security program.
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that is credited to the Federal Old-Age and Survivors’ Trust Fund and
the Federal Disability Insurance Trust Fund?
a. Federal Income Tax Act
b. Federal Insurance Contributions Act
c. Fair Labor Standards Act
d. Federal Unemployment Tax Act
e. Employee Retirement Income Security Act
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Form I-9, which is completed by each employee, deals with:
virtually all workers up to the age of:
a. 50.
b. 65.
c. 70.
d. 75.
e. 40.
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Which of the following acts deals with the minimum wage paid to
a. contributions to individual retirement accounts.
b. verification of employment eligibility.
c. eligibility for unemployment benefits.
d. eligibility for Medicare benefits.
e. none of the above.
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laborers for contractors on federal government construction contracts?
a. Walsh-Healey Public Contracts Act
b. Fair Labor Standards Act
c. McNamara-O’Hara Service Contract Act
d. Occupational Safety and Health Act
e. None of the above
Examination Questions/Chapter 1 E–5
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employee’s pension fund in three years or gradually over:
a. ten years.
b. five years.
c. six years.
d. seven years.
e. No gradual vesting is allowed.
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are allowed if:
a. all employees are asked the same questions.
b. only foreign-born applicants are asked these questions.
c. these factors are bona fide occupational qualifications for the job.
d. they are not in written form.
e. the applicant is married.
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add a new employee to the payroll?
a. Employee’s earnings record
b. Change in payroll rate form
c. Reference inquiry form
d. Hiring notice
e. None of the above
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tion, the amount of remuneration, the deductions, and the net amount
paid for each payroll period?
a. Employee history record
b. Payroll register
c. Change in payroll rate form
d. Reference inquiry form
e. None of the above