Salaries & wages cycle Flashcards
(10 cards)
1
Q
what are salaries and wages?
A
- material expense
- wages influence stock valuation (cost allocatin)
- impacts cash: fraud/ theft
- small amounts vs high volume of transaction
- internally generated transaction without physical documentation
2
Q
salaries?
A
- fixed, pre-determined amount, not affected by hours worked (basic salary)
- paid monthly by EFT
- NB: calc, payment
3
Q
wages?
A
- paid for productive hours
- timekeeping required
- paid weekly with cash
- NB: time worked, calcs, payment, control over cash
4
Q
initiate?
A
- appointment and authorisation
- personal records
5
Q
execute?
A
time keeping & checking of hours worked
6
Q
record?
A
calculation & prep of payroll
7
Q
processing?
A
- transfer of deductions
- payments
- unclaimed wages
8
Q
report?
A
account
9
Q
segregation of duties?
A
- appointment
- maintenance of permanent files
- safe gaurding of clock cards & calcs
- account
- pay-out
10
Q
A
