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THE PAYROLL SOURCE CPP FINAL EXAM AND PRACTICE EXAM
NEWEST 2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
When determining the value of employer-provided parking, which
of the following valuations methods is allowed?
A. employer's cost
B. employee's cost
C. lower of employee's cost or fair market value
D. fair market value - ANSWER-D. Fair Market Value
What is the purpose of the payroll accrual entry?
A. to recognize expenses in the period in which they were
incurred
B. to reverse an entry made in error
C. to recognize expenses in the period in which they were paid
D. to reverse an entry from a previous period - ANSWER-A. To
recognize expenses in the period in which they were incurred
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Which of the following steps is LEAST important during the
parallel testing phase of a new payroll system?
A. the testing of employee earnings and deductions accruacy
B. the verification of employees transferred to the new system
from the old system
C. the verification of tax withholding calculations for employees
D. testing the functionality of a wage attachment process -
ANSWER-D. testing the functionality of a wage attachment
process
Which of the following is LEAST likely to be considered when
looking at the security of a new payroll system?
A. regular data back-up and storage
B. protection against computer viruses
C. limited system access
D. system edits - ANSWER-D. system edits
Company deadlines for payroll data input documents are
essential for:
A. timely processing of the payroll
B. accurate entry of data
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C. guaranteeing that all information is processed
D. adequate auditing purposes - ANSWER-A. timely processing of
the payroll
An employee earns $9 per hour and an additional 10 cents per
hour for hours worked after 7:00 p.m. If an employee works from
2:00p.m. to 11:00p.m., with an unpaid meal break from 6:00 p.m.
to 7:00p.m., Monday through Friday, what is the employee's
weekly gross pay under the Fair Labor Standards Act?
A. $360
B. $361
C. $362
D. $364 - ANSWER-C. $362 (40x$9)+(20x$.10)=$362
The BEST reason for tracking pay-related problem statistics is to
enable Payroll to:
A. identify root causes and take actions to prevent similar
recurrences
B. apologize to clients in a more professional manner
C. direct problems to those who caused the problem
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D. justify more resources to handle more problems - ANSWER-A.
identify rout caused and take actions to prevent similar
recurrences
With regard to employees' reported tips, the employer must:
A. withhold and pay only the employees' portion of social security
and Medicare taxes on tips
B. report taxes on tips separately when making an employment
tax deposit
C. report tips as wages on Form W-2 and pay the employer
portion of social security and Medicare taxes
D. report and pay the employer portion of social security and
Medicare taxes on the portion of cash tips above the federal
minimum wage - ANSWER-C. report tips as wages on Form W-2
and pay the employer portion of social security and Medicare
taxes
Transactions are recorded in chronological order into books of
original entry called:
A. registers
THE PAYROLL SOURCE CPP FINAL EXAM AND PRACTICE EXAM
NEWEST 2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
When determining the value of employer-provided parking, which
of the following valuations methods is allowed?
A. employer's cost
B. employee's cost
C. lower of employee's cost or fair market value
D. fair market value - ANSWER-D. Fair Market Value
What is the purpose of the payroll accrual entry?
A. to recognize expenses in the period in which they were
incurred
B. to reverse an entry made in error
C. to recognize expenses in the period in which they were paid
D. to reverse an entry from a previous period - ANSWER-A. To
recognize expenses in the period in which they were incurred
,2|Page
Which of the following steps is LEAST important during the
parallel testing phase of a new payroll system?
A. the testing of employee earnings and deductions accruacy
B. the verification of employees transferred to the new system
from the old system
C. the verification of tax withholding calculations for employees
D. testing the functionality of a wage attachment process -
ANSWER-D. testing the functionality of a wage attachment
process
Which of the following is LEAST likely to be considered when
looking at the security of a new payroll system?
A. regular data back-up and storage
B. protection against computer viruses
C. limited system access
D. system edits - ANSWER-D. system edits
Company deadlines for payroll data input documents are
essential for:
A. timely processing of the payroll
B. accurate entry of data
,3|Page
C. guaranteeing that all information is processed
D. adequate auditing purposes - ANSWER-A. timely processing of
the payroll
An employee earns $9 per hour and an additional 10 cents per
hour for hours worked after 7:00 p.m. If an employee works from
2:00p.m. to 11:00p.m., with an unpaid meal break from 6:00 p.m.
to 7:00p.m., Monday through Friday, what is the employee's
weekly gross pay under the Fair Labor Standards Act?
A. $360
B. $361
C. $362
D. $364 - ANSWER-C. $362 (40x$9)+(20x$.10)=$362
The BEST reason for tracking pay-related problem statistics is to
enable Payroll to:
A. identify root causes and take actions to prevent similar
recurrences
B. apologize to clients in a more professional manner
C. direct problems to those who caused the problem
, 4|Page
D. justify more resources to handle more problems - ANSWER-A.
identify rout caused and take actions to prevent similar
recurrences
With regard to employees' reported tips, the employer must:
A. withhold and pay only the employees' portion of social security
and Medicare taxes on tips
B. report taxes on tips separately when making an employment
tax deposit
C. report tips as wages on Form W-2 and pay the employer
portion of social security and Medicare taxes
D. report and pay the employer portion of social security and
Medicare taxes on the portion of cash tips above the federal
minimum wage - ANSWER-C. report tips as wages on Form W-2
and pay the employer portion of social security and Medicare
taxes
Transactions are recorded in chronological order into books of
original entry called:
A. registers
