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Chapter Test - HRM&Payroll Cycle

This document contains a chapter test on human resources management and the payroll cycle. It has three parts: 1) a 10 question multiple choice section; 2) a matching section that matches payroll terms to their definitions; and 3) an identification section that asks what internal controls would prevent common payroll errors. The test covers topics like payroll processing tasks, threats to the payroll cycle, payroll documents, and responsibilities within the payroll process.

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Faith Reyna Tan
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271 views3 pages

Chapter Test - HRM&Payroll Cycle

This document contains a chapter test on human resources management and the payroll cycle. It has three parts: 1) a 10 question multiple choice section; 2) a matching section that matches payroll terms to their definitions; and 3) an identification section that asks what internal controls would prevent common payroll errors. The test covers topics like payroll processing tasks, threats to the payroll cycle, payroll documents, and responsibilities within the payroll process.

Uploaded by

Faith Reyna Tan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CHAPTER TESTS

Name: _________________________ Date: _________________

The Human Resources Management and Payroll Cycle


Part I-Multiple Choice. Read each question and answer choice carefully and choose the ONE
best answer.
1. Which of the following is not a task performed by the human resource management/payroll
cycle?
a. Recruiting and hiring new employees
b. Training
c. Job assignment
d. Access right management

2. Which of the following is not a general threat to the HRM/payroll cycle?


a. Inaccurate employee master data
b. Unauthorized disclosure of sensitive information
c. The loss or destruction of master data
d. Poor product design

3. Which document lists the current amount and year-to-date totals of gross pay, deductions,
and net pay for one employee?
a. Payroll register
b. Time card
c. Paycheck
d. Earnings statement

4. The HRM department is responsible for updating the payroll master database for internally
initiated changes related to employment.
a. True b. False

5. Use of a payroll service bureau or a PEO provides which of the following benefits?
a. Fewer staff needed to process payroll
b. Lower cost of processing payroll
c. Less need for developing and maintaining payroll tax expertise
d. All of the above

6. Many companies use a __________ to record daily arrival and departure times of
employees, who are paid on an hourly basis.
a. Time card
b. Time sheet
c. Punch card
d. Entry card

7. Which department should have responsibility for authorizing pay rate changes?
a. Timekeeping
b. Payroll
c. HRM
d. Accounting

8. To maximize effectiveness of internal controls over payroll, which of the following persons
should be responsible for distributing employee paychecks?
a. Departmental secretary
b. Payroll clerk
c. Controller
d. Departmental supervisor
9. Where should unclaimed paychecks be returned?
a. HRM department
b. Cashier
c. Payroll department
d. Absent employee’s supervisor

10. Which of the following is an supporting document to authorize the transfer of funds to the
payroll bank account?
a. Earnings statement
b. Time card
c. Payroll register
d. W-2 form

Part II- Matching Type. Match the following terms with their definitions.

Terms Definitions
1. Payroll service a. A list of each employee’s gross pay, payroll
bureau deductions, and net pay in a multicolumn format
2. Payroll clearing b. Used to record the activities performed by a salaried
account professional for various clients
3. Earnings statement c. Used to record time worked by an hourly wage
employee
4. Payroll register d. An organization that processes payroll and provides
other HRM services
5. Time card e. An organization that processes payroll
6. Time sheet f. A list of all the deductions for each employee
g. A document given to each employee that shows
gross pay, net pay, and itemizes all deductions both
for the current pay period and for the year-to-date.
h. Special general ledger account used for payroll
processing

Part III- Identification. What internal control procedure(s) would be most effective in preventing
the following errors or fraudulent acts?
a. An inadvertent data entry error caused an employee’s wage rate to be overstated in the
payroll master file.

b. A fictitious employee payroll record was added to the payroll master file.

c. During data entry, the hours worked on an employee’s time card for one day were
accidentally entered as 80 hours, instead of 8 hours.
d. A computer operator used an online terminal to increase her own salary.

e. A factory supervisor failed to notify the HRM department that an employee had been fired.
Consequently, paychecks continued to be issued for that employee. The supervisor
pocketed and cashed those paychecks.

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