Payroll Processing Quiz

What is the main responsibility of the payroll department in a basic technology payroll system?

• Reconciling personnel and time attendance information, calculating payroll, and preparing paychecks

• Authorizing payroll disbursement and updating accounts

• Depositing payroll funds into an imprest account

• Posting labor costs to work-in-process accounts

Which department authorizes the cash disbursement for payroll?

• Payroll

• Accounts Payable

• General Ledger

• Production

How are payroll funds disbursed in a basic technology payroll system?

• Employees receive payments directly from cost accounting

• Payroll department issues checks to employees from the general fund

• A single check for the total payroll is deposited into a bank imprest account

• Paychecks are distributed electronically by the personnel department

In a basic payroll system, where does the paymaster obtain the paychecks from?

• Cost Accounting

• General Ledger

• Payroll Department

• Accounts Payable

Why is a bank imprest account used in payroll processing?

• To segregate payroll funds and ensure controlled disbursement

• To allow employees direct access to payroll funds

• To avoid reconciliation between payroll and general ledger

• To enable payroll to be paid in cash directly to employees

What is the primary benefit of integrating payroll processing within the HRM system?

• It provides real-time access to personnel records for direct inquiries and status changes.

• It eliminates the need for human resources clerks.

• It reduces the number of employees needed in payroll processing.

• It allows payroll to be processed without any human intervention.

Which technology is used in biometric time clocks to verify employee identities?

• Fingerprint or hand-vein scan technology

• Retinal scan technology

• RFID tracking

• Voice recognition

How does the advanced payroll system handle employee timekeeping for remote workers?

• By allowing employees to clock in using mobile remote devices such as tablets or web browsers.

• By requiring employees to report their hours manually to HR.

• By using a universal time clock that records all employee hours automatically.

• By assuming all employees work the same number of hours per week.

At the end of a work period, what happens to labor costs in an advanced payroll system?

• They are directly deducted from employee paychecks.

• They are distributed to WIP, overhead, and expense accounts in a batch process.

• They are automatically recorded in employee records but not processed.

• They are stored until the next payroll cycle for reconciliation.

How does the system ensure payroll funds are available before issuing payments?

• Funds sufficient to cover payroll are transferred to a payroll imprest account.

• Payroll is deducted from employee accounts in advance.

• Payroll is processed only when cash is available in the general fund.

• Employees must request payments manually from the cash disbursements department.