CPP Practice Exam 6

25 Questions | Total Attempts: 1194

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CPP Quizzes & Trivia

This is a practice quiz to help you prepare for the Certified Payroll Professional certification. The quiz is based on a bank of 25 multiple choice questions that reveal the correct answer before you move on to the next question. The questions and their associated answers are randomized every time you take the quiz to avoid pattern development. Questions requiring calculations that change from year to year have been omitted. Good luck as you pursue this goal. I hope this helps you prepare. Inspired by my lovely wife as she pursued this goal as well.


Questions and Answers
  • 1. 
    For purposes of the FLSA, a payroll register must be retained for a period of not less than how many years?
    • A. 

      4

    • B. 

      2

    • C. 

      3

    • D. 

      5

  • 2. 
    Under the federal requirements, a restaurant establishme with 10 or more employees is required to report allocated tips if reported tips are less than what percentage of gross receipts?
    • A. 

      8%

    • B. 

      10%

    • C. 

      25%

    • D. 

      6%

  • 3. 
    The employer must withhold FICA and federal income taxes, and pay FUTA tax, when the employee's tips exceed what amount?
    • A. 

      $50 per month

    • B. 

      $20 per year

    • C. 

      $20 per month

    • D. 

      $50 per year

  • 4. 
    Federal unemployment tax must be accrued for which of the following?
    • A. 

      Wages paid to federal employees

    • B. 

      Taxable group-term life

    • C. 

      Tip income under $20 per month

    • D. 

      Deceased worker's final wage payment in year of death

  • 5. 
    An employee of a state law enforcement agency worked 45 hours in the workweek.  Under FLSA, how much compensatory time off must this employee receive in lieu of overtime pay?
    • A. 

      2.5 hours

    • B. 

      7.5 hours

    • C. 

      5.5 hours

    • D. 

      10.0 hours

  • 6. 
    Which of the following is not likely to be included in payroll documentation?
    • A. 

      Tax Set Up

    • B. 

      Correcting Errors

    • C. 

      Proofing and Balancing Payroll

    • D. 

      Auditors' Questionnaire

  • 7. 
    The propler entry to record the payment of accrued wages is:
    • A. 

      Debit accrued wages, credit cash

    • B. 

      Debit cash, credit accrued wages

    • C. 

      Debit salary expense, credit accrued wages

    • D. 

      Debit cash, credit salary expense

  • 8. 
    In a relational database, a field is represented as :
    • A. 

      A highlighted area of the monitor

    • B. 

      An entry on a row in a table

    • C. 

      A command button on the panel or screen

    • D. 

      An icon on the graphical user interface

  • 9. 
    If an employee fails to furnish the employer with a Form W-4, the employer is required to withhold federal income tax at the rate of:
    • A. 

      Married and 0 allowances

    • B. 

      Single and 1 allowance

    • C. 

      Single and 0 allwoances

    • D. 

      Married and 2 allowances

  • 10. 
    Under the special accounting rule, employers may treat benefits earned near the end of teh yare as having been earned in the subsequent year for tax and reporting purposes.  Benefits for which month(s) may be treated as having been earned in the follwoing tax year?
    • A. 

      December only

    • B. 

      November and December

    • C. 

      The last 3 months of the year

    • D. 

      The last 6 months of the year

  • 11. 
    A plan to ensure business can continue in the event of a flood is called a:
    • A. 

      Strategic business plan

    • B. 

      Disaster recovery plan

    • C. 

      Implementation plan

    • D. 

      Group term life plan

  • 12. 
    The FLSA term "exempt" generally means the employer need NOT:
    • A. 

      Withhold federal income tax

    • B. 

      Pay federal income tax

    • C. 

      Pay a minimum amount

    • D. 

      Pay overtime

  • 13. 
    A prenotification may be used when an employee:
    • A. 

      Is relocated

    • B. 

      Changes banking institutions

    • C. 

      Loses a paycheck

    • D. 

      Has insufficient funds in a checking account

  • 14. 
    Which of the following describes the system step needed nearest in time to the start of the processing with a new system?
    • A. 

      Feasibility

    • B. 

      Parallel

    • C. 

      Evaluation

    • D. 

      Needs anaylisis

  • 15. 
    Which of the following is usually considered an advantage for outsourcing payroll?
    • A. 

      Business decisions transfer to the outsource provider

    • B. 

      Tax withholding updates in the system are the responsibility of the service provider

    • C. 

      The employer is relieved of all compliance responsibility

    • D. 

      All of the business needs can be met with no customizations

  • 16. 
    Which of the following would probably not require an electronic interface from the payroll/human resources system?
    • A. 

      External audit firm

    • B. 

      401(k) administrator

    • C. 

      Payer of push money

    • D. 

      Originating bank for direct deposit

  • 17. 
    The obligations of the common paymaster include:
    • A. 

      Absorbing the salary expenses for the individuals employed concurrently by the related corporatins

    • B. 

      Deducting from its corporate tax return the salary and wage expenses for all of the individuals employed concurrently by the related corporations

    • C. 

      Depositing and reporting the taxes withheld from the individuals it pays who are concurrently employed by the related corporations

    • D. 

      Absorbing the employer tax expenses for the individuals employed concurrently by the related corporations

  • 18. 
    What is the difference between policy and a procedure?
    • A. 

      None, they serve the same purpose

    • B. 

      Policies are rules; procedures are instructions

    • C. 

      Policies can be overridden; procedures may not

    • D. 

      Procedures need to be documented; policies do not

  • 19. 
    Which of the following is most likely to be included in expenses on an organizations's financial statement?
    • A. 

      Company-matched Social Security tax paid to IRS

    • B. 

      Cash

    • C. 

      Wages payable in subsequent month

    • D. 

      Wages payable in subsequent year

  • 20. 
    Which of the following is not a by-product of documentation?
    • A. 

      Consistency

    • B. 

      Simplified training

    • C. 

      Reference material

    • D. 

      Firewall violation prevention

  • 21. 
    As enhancements direclty for a vendor-supplied software program, a quality assurance step includes:
    • A. 

      Applying the enhancements directly into production as soon as they are recieved

    • B. 

      Executing a test of the new enhancements in parallel with the current processing

    • C. 

      Waiting until several vendor releases or enhancements are received and installing all at the same time

    • D. 

      Conducting telephone interviews with other users of the vendor's software

  • 22. 
    If a company is examinng the feasibility of purchasing an intergrated human resource information system (HRIS), what approach is best?
    • A. 

      Assign the search task to the information systems staff who have prior experience in each HRIS discipline

    • B. 

      Instruct each user area to conduct an independent search for a software vendor

    • C. 

      Assemble a team of information system staff and potential users to conduct the search

    • D. 

      Authorize the company's payroll manager to select the vendors from which to choose

  • 23. 
    The annual "bright-line" salary test to meet the definition of exempt under the FLSA is:
    • A. 

      $100,000

    • B. 

      $50,000

    • C. 

      $90,000

    • D. 

      $45,500

  • 24. 
    How should a manager provide negative feedback to an employee?
    • A. 

      At a department meeting

    • B. 

      In the privacy of an office or conference room

    • C. 

      Through an email-message

    • D. 

      On a voice-mail

  • 25. 
    Which of the following is an example of a system production control technique?
    • A. 

      A check list is created of sequential activities to run the payroll

    • B. 

      Job descriptions are updated as the incumbents of the jobs change

    • C. 

      Forms W-9 are obtained for all independent contractors

    • D. 

      Computers and other hardware are kept in climate controlled rooms

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