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THE PAYROLL SOURCE CPP FINAL EXAM NEWEST 2025/2026
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS) |ALREADY
GRADED A+| ||PROFESSOR VERIFIED||
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
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
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All of the following practices are acceptable to an external auditor
EXCEPT:
A. the accounting department reconciling the payroll checking
account
B. the payroll supervisor verifying that the deposits are made
timely
C. storage of blank payroll checks in the payroll department
D. the treasury department being responsible for the signature of
payroll checks - ANSWER-C. Storage of blank payroll checks in
the payroll department
All of the following types of compensation are subject to social
security EXCEPT:
A. tips under $100
B. deferred bonus
C. third party sick pay up to $3,000
D. workers compensation benefits - ANSWER-D. Workers
compensation benefits
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Which of the following outcomes is the PRIMARY advantage of
developing an in-house system?
A. Outsiders are not involved in a firm's daily operations
B. Costs are reduced and can be distributed on an equitable basis
C. The employer controls the entire computer system
D. Time is saved by not having to explain business policies and
practices - ANSWER-C. The employer controls the entire
computer system
An employee covered by group health insurance at the time his
employment terminates to return to school is entitled to COBRA
continuation rights for:
A. 12 months
B. 18 months
C. 24 months
D. 30 months - ANSWER-B. 18 months
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
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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
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 PAYROLL SOURCE CPP FINAL EXAM NEWEST 2025/2026
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS) |ALREADY
GRADED A+| ||PROFESSOR VERIFIED||
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
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
,2|Page
All of the following practices are acceptable to an external auditor
EXCEPT:
A. the accounting department reconciling the payroll checking
account
B. the payroll supervisor verifying that the deposits are made
timely
C. storage of blank payroll checks in the payroll department
D. the treasury department being responsible for the signature of
payroll checks - ANSWER-C. Storage of blank payroll checks in
the payroll department
All of the following types of compensation are subject to social
security EXCEPT:
A. tips under $100
B. deferred bonus
C. third party sick pay up to $3,000
D. workers compensation benefits - ANSWER-D. Workers
compensation benefits
,3|Page
Which of the following outcomes is the PRIMARY advantage of
developing an in-house system?
A. Outsiders are not involved in a firm's daily operations
B. Costs are reduced and can be distributed on an equitable basis
C. The employer controls the entire computer system
D. Time is saved by not having to explain business policies and
practices - ANSWER-C. The employer controls the entire
computer system
An employee covered by group health insurance at the time his
employment terminates to return to school is entitled to COBRA
continuation rights for:
A. 12 months
B. 18 months
C. 24 months
D. 30 months - ANSWER-B. 18 months
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
, 4|Page
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
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
