Chapter 6

Question 1

Personnel dept. uses personnel action forms to:

Answer 1

• activate new employees
• change the pay rate of employees
• change marital status and/or number of dependents
• terminate employees

Question 2

Production employees fill out two forms

Answer 2

• Job Ticket
• Time Cards

Question 3

account for the time spent by the worker on each production job

Answer 3

Job Ticket

Question 4

used to capture the total time
worked each pay period for payroll calculations

Answer 4

Time Cards

Question 5

Job Ticket and Time cards must be

Answer 5

signed by a supervisor

Question 6

Cost Accounting dept. uses the job tickets to

Answer 6

allocate labor costs to WIP accounts

Question 7

Payroll dept receives personnel action forms and time cards and uses them to:

Answer 7

1. Prepare the payroll register
2. enter the information into the
   employee payroll records
3. prepare paychecks
4. send paychecks to Cash Disbursements and a copy of the payroll register to Accounts Payable

Question 8

Accounts Payable dept prepares a

Answer 8

• cash disbursements voucher for the total amount of the payroll
• sends copies to the Cash
  Disbursements and G/L depts

Question 9

Cash Disbursements dept reviews and signs

Answer 9

• the paychecks and forwards them to a paymaster for distribution to the employees
• writes a check for the payroll and deposits it into the payroll imprest account

Question 10

Begins when a dept. manager determines that an old fixed asset needs to be replaced or that a new fixed asset is warranted

Answer 10

Asset Acquisition

Question 11

Involves adjusting FAS subsidiary account balances
as assets depreciate

Answer 11

Asset Maintenance

Question 12

At the end of an asset’s useful life (or earlier disposition), the asset must be removed from the records and depreciation schedule

Answer 12

Asset Disposal

Question 13

Disposals require ___________ as source documents.

Answer 13

Disposal request forms
and disposal reports