CPP Domain 7: Accounting Welcome to your CPP Domain 7: Accounting 1. CPP: Accounting When analyzing the variance between actual and budgeted payroll costs, which of the following would not be a likely cause of variance? A. Changes in employee headcount B. Implementation of a new payroll system C. Fluctuations in exchange rates for multinational companies D. Periodic depreciation of fixed assets None 2. CPP: Accounting In payroll accounting, what is the primary purpose of a reconciliation process? A. To ensure compliance with labor laws B. To verify the accuracy of payroll transactions against bank statements C. To calculate gross wages for employees D. To prepare financial statements None 3. CPP: Accounting Which of the following best describes the term "accrued payroll"? A. Payroll that has been disbursed but not yet earned by employees B. Payroll that has been earned by employees but not yet disbursed C. The process of adjusting payroll expenses for tax purposes D. The total amount of payroll expenses before taxes None 4. CPP: Accounting How is the journal entry to record the payment of payroll typically structured? A. Debit Payroll Expense; Credit Cash B. Debit Accrued Payroll; Credit Payroll Expense C. Debit Cash; Credit Accrued Payroll D. Debit Payroll Expense; Credit Accrued Payroll None 5. CPP: Accounting In the context of payroll, what does the term "FUTA" stand for, and what is its significance? A. Federal Unemployment Tax Act; a payroll tax paid by employers to fund state workforce agencies B. Federal Uniform Tax Assessment; a uniform tax rate applied across all states C. Federal Utilized Tax Allocation; a method for allocating taxes among employees D. Federal Underpayment Tax Assessment; penalties assessed for underpayment of payroll taxes None 6. CPP: Accounting Which financial statement reflects the total payroll expense for a specific period? A. Balance Sheet B. Income Statement C. Statement of Cash Flows D. Statement of Changes in Equity None 7. CPP: Accounting What is the accounting treatment for bonuses paid to employees? A. Treated as a reduction in equity B. Recorded as a liability until paid C. Treated as an advance payment for services D. Recorded as an expense in the period they are declared None 8. CPP: Accounting How does the implementation of a new payroll system impact financial reporting? A. It has no impact on financial reporting. B. It may result in temporary discrepancies in payroll-related expenses. C. It decreases payroll expenses due to increased efficiency. D. It increases payroll expenses due to the capitalization of system costs. None 9. CPP: Accounting What role does the payroll department play in the internal control system of an organization? A. Designing financial statements B. Managing company investments C. Ensuring the accuracy and confidentiality of payroll information D. Directly overseeing the auditing process None 10. CPP: Accounting What is the significance of the "payroll register" in payroll accounting? A. It lists the company's current stock prices. B. It is used to reconcile bank statements. C. It records detailed information about each payroll transaction. D. It outlines the company's investment strategies. None 1 out of 10 Time is Up! Time's up
