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APA Certified Payroll Professional Sample Questions (Q107-Q112):

NEW QUESTION # 107
One of the employees of the Great Company called to report to the payroll department that his payroll check was incorrect. Which of the following is the most appropriate response or action for the payroll department representative who spoke to the caller?

A. Acknowledge immediately that a mistake is likely and assure the caller an adjustment will be processed the same day
B. Record the caller's name and telephone number and promise to call him back as soon as time permits
C. Record the caller's name, employee number and telephone number, his analysis of the payroll check, including the reasons he believes his paycheck is incorrect, and provide a time and date for returning his call with a response to his inquiry.
D. Explain that due to the intense schedule under which payroll operates, someone will look into the problem before the next regular payday and make an adjustment at that time if one is warranted.

Answer: C

NEW QUESTION # 108
Which of the following employees' wages is likely to be exempt from FICA?

A. A statutory employee
B. A spouse working for a spouse
C. A parent working for a child
D. A child under age 18 employed by a parent

Answer: D

NEW QUESTION # 109
Which of the following describes a plan involving the entire organization for carrying on a company's business in the event of a major disaster?

A. Groupware
B. Production plan
C. Business continuity
D. Implementation plan

Answer: C

NEW QUESTION # 110
The purpose of a payroll accrual entry is to post:

A. estimated expenses.
B. actual liabilities.
C. estimated assets.
D. actual revenue.

Answer: A

Explanation:
Comprehensive and Detailed in-Depth Explanation:
A payroll accrual entry is made to recognize expenses that have been incurred but not yet paid by the end of an accounting period. This ensures that financial statements accurately reflect the company ' s financial position by matching expenses to the period in which they were incurred, regardless of when the cash payment is made. In the context of payroll, this involves recording wages and related expenses (such as taxes and benefits) that employees have earned but have not yet been paid. Therefore, the correct answer is D.
estimated expenses.
References:
The Payroll Source, Chapter 4: Accounting for Payroll

NEW QUESTION # 111
An employer may exclude a business reimbursement from income when the employee's expenses meet which of the following requirements?

A. Expenses are substantiated and excess advances are returned
B. Reimbursements are made with regular payroll
C. Expenses are business-related, substantiated, and excess advances are retained for future travel.
D. Expenses are business-related, substantiated, and excess advances are returned timely.

Answer: D

NEW QUESTION # 112
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