Free Access APA.CPP-Remote.v2025-11-01.q92 Practice Test (Page 8)

Question 31

The Fair Labor Standards Act specifically governs which of the following?

A.How vacation pay is accrued

B.When severance pay must be paid

C.When holiday pay must be provided

D.Record keeping requirements

Question 32

When implementing a payroll system update, it is important to perform all EXCEPT:

A.Verifying system security

B.Updating company policies

C.Verifying control procedures

D.Updating system documentation

Question 33

Nice Guys Inc. has a short-term disability plan, provided by a third-party insurance company, for its factory workers. Employees do not pay for this benefit. Roberta received $400 a month for four months during the six-month coverage period. How did the third-party payer tax Roberta's disability payments?

A.Social Security and Medicare taxes were withheld on $400 in each of the four months.

B.No tax was withheld on any payments

C.Social Security and Medicare taxes were withheld on the value of the premium paid by the employer

D.Federal Income tax was withheld on $400 in each of the four months

Question 34

Flawless Flower Shops accepts payments for flowers and local delivery from customers anywhere in the United States. The employees of Flawless typically work 6 days a week. How must they be compensated?

A.Overtime is due for hours worked over 40 in a workweek

B.Double time is required for work on holidays

C.Overtime must be paid on a daily basis

D.Compensatory pay is allowed for hours over 80 in a biweekly pay period

Question 35

What is the purpose of the payroll accrual entry?

A.to recognize expenses in the period in which they were paid

B.to recognize expenses in the period in which they were incurred

C.to reverse an entry from a previous period

D.to reverse an entry made in error

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