Hall 5e TB Ch06.rtf RTF

Title	Hall 5e TB Ch06.rtf
Author	Hector louis Fabiana
File Size	119 KB
File Type	RTF
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Chapter 6—The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures TRUE/FALSE 1. Time cards are used by cost accounting to allocate direct labor charges to work in process. ANS: F 2. The personnel department authorizes changes in employee pay rates. ANS: T 3. Most payroll systems for mid-size firms use real-time data processing. ANS: F 4. To improve internal control, paychecks should be distributed by the employee's supervisor. ANS: F 5. Employee paychecks should be drawn against a special checking account. ANS: T 6. Because a time clock is used, no supervision is required when employees enter and leave the work place. ANS: F 7. Inventory control performs the formal record keeping function for fixed assets. ANS: F 8. The depreciation schedule shows when assets are fully depreciated. ANS: T 9. Authorization to dispose of fixed assets should be issued by the user of the asset. ANS: F 10. Work-in-process records are updated by payroll personnel. ANS: F 11. Ideally, payroll checks are written on a special bank account used only for payroll. ANS: T 12. The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks....