ACCT 160 Chapter 03 Study Guide: Comprehensive Questions and Answers for 2024/2025, Exams of Business Ethics

Download ACCT 160 Chapter 03 Study Guide: Comprehensive Questions and Answers for 2024/2025 and more Exams Business Ethics in PDF only on Docsity! ACCT 160 Chapter 03 Study Guide | Comprehensive Questions and Answers Latest Updated 2024/2025 With 100% Verified Solutions Nonexempt employees are usually workers who: A) Routinely supervise other employees. B) Are exempt from certain company rules. C) Occupy executive positions in the company. D) Perform operative level tasks. - ✔✔D) Perform operative level tasks. The difference between the federal minimum wage and the tipped wage involves: A) The type of work the employee performs. B) An employee's qualifications for the job. C) The size of the town in which the employer is located. D) Supervisory reviews about the employee's performance. - ✔✔A) The type of work the employee performs. Which of the following is always true about tipped employees? A) The minimum wage for tipped employees is consistent among all states. B) They have the opportunity to earn tips from patrons as a regular part of their job. C) They only earn occasional tips from other employees. D) They must earn more than 50% of their income from tips. - ✔✔B) They have the opportunity to earn tips from patrons as a regular part of their job. Vincent is a tipped employee who earns a wage of $2.13 per hour in a tip-credit state and works a standard 40-hour workweek. Last week he earned $60 in tips. Which of the following is true? A) Vincent does not have to report his tips for the week because they were less than $75. B) Vincent's employer may not report his tips for income tax purposes. C) Vincent's employer must pay him the tip credit because his wages and tips for the week were less than the federal minimum wage. D) Vincent must file a request with his employer to have the tip credit applied to his wages for the week. - ✔✔C) Vincent's employer must pay him the tip credit because his wages and tips for the week were less than the federal minimum wage. Cole is a minimum wage employee in Santa Fe, NM where the minimum wage is $11.80 per hour. His employer claims that since the federal minimum wage is $7.25 per hour Cole should only receive the federal amount. What is the correct answer in this situation? A) The employer has the discretion to pay either the federal or the state-designated minimum wage. B) The employer may choose to pay less than the state-designated minimum wage based on the employee's qualifications and job description. C) The employer is correct that the federal minimum wage overrules the state wage. D) The employer must pay the state-designated minimum wage for the area. - ✔✔D) The employer must pay the state-designated minimum wage for the area. Paloma is a 16-year-old who babysits for a local family on an occasional basis. During a calendar year she earned $1,250 in babysitting wages. What is true about Paloma's wages? A) The family must treat her as a domestic employee and abide by FLSA regulations. B) Paloma does not earn enough to be considered a domestic employee so FLSA rules do not apply. C) Paloma is not considered an employee, but certain FLSA provisions apply. D) Since the family conducts no interstate commerce, FLSA provisions cannot apply. - ✔✔B) Paloma does not earn enough to be considered a domestic employee so FLSA rules do not apply. The minimum wage for salaried employees is: A) $455/week. B) $523/week. C) $596/week. D) $580.50 - ✔✔A) $575.00 Breon works as a clerk in the human resources department for her company for which she receives an hourly rate of $9.50. Occasionally she fills in for the receptionist at the front desk and receives a $1.50 per hour differential. During a weekly pay period she worked 35 hours in the human resources department and 5 hours at the front desk. What is Breon's gross pay for the week? A) $387.50 B) $347.50 C) $380.00 D) $393.00 - ✔✔A) $387.50 Al works in the warehouse for his company and receives $12.75/hour. He occasionally works in the Quality Assurance (QA) department as a receiving clerk and earns a 15% differential for hours worked there. During a two-week pay period he worked 72 hours in the warehouse and 12 hours in the QA department. He worked all overtime hours in the warehouse. Standard workweek has 40 hours. What is his gross pay for the pay period? (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $1,071.00 B) $1,096.50 C) $1,042.95 D) $1,119.45 - ✔✔D) $1,119.45 Taylor is an outside salesperson for a firm in Idaho. She earns a 10% commission on all sales she makes. During a one-week pay period she made $3,400 in sales. What is her gross pay? How much does her employer need to contribute toward her pay to meet FLSA standards? A) $340 & $0 B) $315 & $119 C) $434 & $0 D) $340 & $94 - ✔✔A) $340 & $0 Taylor is an outside salesperson for a firm in Idaho. She earns a 10% commission on all sales she makes. During a one-week pay period she made $2,750 in sales. What is her gross pay? How much does her employer need to contribute toward her pay to meet FLSA standards? A) $275 & $0 B) $250 & $205 C) $455 & $0 D) $275 & $180 - ✔✔A) $275 & $0 Lynda works as a sales representative for her company. Her job requires her to travel to customer sites to meet with her customers. Which of the following pay bases would be the most appropriate for her? A) Hourly B) Salary C) Commission D) Piece-rate - ✔✔C) Commission Bill is an exempt employee whose annual pay is $53,600 for 37.5 hours per week. During a two-week period company employees were given a two-day holiday. What is Bill's regular pay and holiday pay for the period? (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $1,649.23 & $412.31 B) $1,785.67 & $602.38 C) $1,630.77 & $615.48 D) $1,529.74 & $603.92 - ✔✔A) $1,649.23 & $412.31 Phillippe is an inside salesperson who earns a base annual salary of $36,600 plus a 5% commission on total sales that he makes during the pay period. During a semimonthly period, he made $30,000 in sales. What is Phillippe's gross pay for the period? (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $3,025.00 B) $3,040.38 C) $2,948.07 D) $3,072.50 - ✔✔A) $3,025.00 Phillippe is an inside salesperson who earns a base annual salary of $24,000 plus a 5% commission on total sales that he makes during the pay period. During a semimonthly period he made $27,500 in sales. What is Phillippe's gross pay for the period? (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $2,298.07 B) $2,390.38 C) $2,375.00 D) $2,422.50 - ✔✔C) $2,375.00 Clark is a piece rate worker who earns $8.25 per completed unit. During a 40-hour workweek Clark completed 57 units. What is Clark's hourly rate? A) $15.21 per hour B) $11.76 per hour C) $13.98 per hour D) $12.22 per hour - ✔✔B) $11.76 per hour Quinn works the following hours during a one-week period: Day Hours Minutes Monday 8 34 Tuesday 7 56 Wednesday 7 58 Brendan is an hourly worker and earns $15.25/hour. During a week's pay period he worked the following hours and minutes: Day Hours Minutes Monday 8 45 Tuesday 7 52 Wednesday 8 0 Thursday 9 36 Friday 8 24 Using the hundredth-hour method what is Brendan's gross pay for the week? The employer pays overtime for all time worked in excess of 40 hours per week. (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $670.00 B) $649.90 C) $669.86 D) $650.00 - ✔✔C) $669.86 Betsy is a salaried nonexempt worker who earns $39,500 per year for a 40-hour workweek. During a weekly pay period she worked the following hours: Day Hours Minutes Monday 8 22 Tuesday 8 45 Wednesday 9 43 Thursday 7 33 Friday 8 8 Her employer uses a hundredth-hour method to compute overtime pay. The employer pays overtime for all time worked in excess of 40 hours per week. What is Betsy's gross pay for the week? (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $819.44 B) $759.62 C) $799.52 D) $831.30 - ✔✔D) $831.30 Thaddeus is a salaried exempt worker who earns $54,500 per year for a 45-hour workweek. During a biweekly pay period he worked 105 hours. What is his gross pay? A) $2,096.15 B) $2,649.03 C) $2,280.44 D) $2,464.46 - ✔✔A) $2,096.15 Thaddeus is a salaried exempt worker who earns $57,500 per year for a 45-hour workweek. During a biweekly pay period he worked 105 hours. What is his gross pay? A) $2,211.54 B) $2,764.42 C) $2,395.83 D) $2,579.85 - ✔✔A) $2,211.54 Maryann is a salaried exempt worker who earns $45,000 per year for a 35-hour workweek. During a biweekly pay period she worked 65 hours. What is her gross pay? A) $1,607.45 B) $1,730.77 C) $1,916.21 D) $1,823.45, - ✔✔B) $1,730.77 Alan is an hourly worker who earns $10.50 per hour and is paid overtime for any time over 40 hours per week. During a weekly period he worked the following hours: Day In Out In Out Monday 7:53 12:04 13:15 17:25 Tuesday 7:42 11:30 12:35 16:45 Wednesday 7:48 12:35 13:28 17:25 Thursday 8:08 12:22 13:45 17:37 Friday 7:35 12:13 13:15 16:42 What is his gross pay for the week using both quarter-hour and hundredth hour methods? (Do not round intermediate calculations. Round final answer to two decimal places.) A) $420.00 & $439.69 B) $435.75 & $439.43 C) $420.00 & $429.67 D) $420.00 & $434.69 - ✔✔B) $435.75 & $439.43 Libby is an hourly employee who earns $14.32/hour. She is paid overtime only for hours worked past 40 in one week. During a weekly pay period she worked the following hours: Day Hours Minutes Monday 8 47 Tuesday 8 22 Wednesday 6 25 Thursday 9 6 Friday 7 58 What is the difference between her pay using the quarter-hour and the hundredth-hour methods? Which method pays Libby the greater amount? (Do not round intermediate calculations. Round final answer to two decimal places.) B) $2,291.67 C) $2,455.39 D) $2,279.11 - ✔✔D) $2,279.11 Bruce is a salaried nonexempt employee who earns $42,500 annually paid semimonthly plus a 0.25% commission on all regional sales, paid monthly on the first pay date of the following month. During the month of May the regional sales were $103,500. What was his gross pay for the first half of June? (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $2,029.58 B) $1,770.83 C) $1,634.62 D) $1,893.37 - ✔✔A) $2,029.58 Lawrin is a real-estate salesperson whose compensation is commission-only. She earns a 3% commission on the sale price of each house that she sells and receives 1.5% commissions at the end of each month (the broker retains the rest per the employment agreement). During the month of July Lawrin sold two houses totaling $392,900. What is her gross pay for the month of July? A) $5,732.20 B) $5,893.50 C) $11,787.00 D) $8,735.70 - ✔✔B) $5,893.50 Lawrin is a real-estate salesperson whose compensation is commission-only. She earns a 3% commission on the sale price of each house that she sells and receives 1.5% commissions at the end of each month (the broker retains the rest per the employment agreement). During the month of July Lawrin sold two houses totaling $385,420. What is her gross pay for the month of July? A) $5,620.00 B) $5,781.30 C) $11,562.00 D) $8,623.50 - ✔✔B) $5,781.30 Alex is a salesperson who receives an annual salary of $18,000 paid semimonthly plus commissions of 5% of the retail price of each unit he sells which is paid on the final pay date of the month. During his first month of employment he sold four units for a total of $1,000 and requested a 5% draw against his $15,000 monthly minimum sales in accordance with his employment agreement. How much should Alex receive in his gross pay for the end of his first month? A) $800.00 B) $1,250.00 C) $1,550.00 D) $1,750.00 - ✔✔C) $1,550.00 During his first month of employment Alix took a draw of 5% against his minimum sales amount of $15,000 in monthly sales that must be deducted from his pay during the first month that he reaches his minimum sales amount. He receives $21,600 annually in base salary plus a 5% commission on his sales. He receives his base salary on a semimonthly basis and receives his commissions on the final pay date of each month. During his second month of employment Alix sold $27,500 of equipment. What is Alix's gross pay for the end of the second month of employment? A) $2,275.00 B) $1,825.00 C) $1,675.00 D) $1,525.00 - ✔✔D) $1,525.00 During his first month of employment Alix took a draw of 5% against his minimum sales amount of $15,000 in monthly sales that must be deducted from his pay during the first month that he reaches his minimum sales amount. He receives $18,000 annually in base salary plus a 5% commission on his sales. He receives his base salary on a semimonthly basis and receives his commissions on the final pay date of each month. During his second month of employment Alix sold $24,000 of equipment. What is Alix's gross pay for the end of the second month of employment? A) $1,950.00 B) $1,500.00 C) $1,350.00 D) $1,200.00 - ✔✔D) $1,200.00 Lloyd is the chief financial officer (CFO) for a firm that uses Incentive stock options (ISOs) as part of its executive compensation plan. He receives $150,000 annually paid semimonthly in base salary plus 25 shares of the firm's stock per month. The stock is omitted from gross pay calculations and is valued at $52.50 per share and he may exercise his option within five years at $0.10 per share. What is Lloyd's gross pay for mid-October? A) $7,250 B) $6,250 C) $7,560 D) $8,250 - ✔✔B) $6,250 Aimee is a salaried nonexempt employee who earns an annual salary of $53,500 for a 33-hour workweek, paid biweekly. The employer pays overtime for any hours worked in excess of 33 per week. During a pay period she worked 70 hours. She has requested that she take compensatory time in lieu of paid overtime. How much compensatory time should she receive assuming that her firm approves the compensatory time? A) 4 hours B) 3.5 hours C) 6 hours D) 11 hours - ✔✔C) 6 hours Aimee is a salaried nonexempt employee who earns an annual salary of $52,500 for a 38-hour workweek paid biweekly. The employer pays overtime for any hours worked in excess of 38 per week. During a pay period she worked 86 hours. She has requested that she take compensatory time in lieu of paid overtime. How much compensatory time should she receive assuming that her firm approves the compensatory time? A) 10 hours Which of the following is not a class of worker that may receive an hourly rate below the Federal minimum wage? A) Disabled employees in occupations unrelated to their disability. B) Full-time college students in agricultural occupations. C) A 16 year-old employee in the first 90 days of work. D) A student learner currently enrolled in a vocational education program. - ✔✔A) Disabled employees in occupations unrelated to their disability. Dorothy is a full-time student in a medical assisting program at a vocational education program. She works part-time for a nursing home as a nurse's assistant and worked 17.5 hours during the last weekly pay period. What should Dorothy's gross pay be for that week? (Do not round intermediate calculations. Round final answer to two decimal places.) A) $290.00 B) $170.00 C) $147.25 D) $95.16 - ✔✔D) $95.16 Internal Revenue Service (IRS) Form ________ is used to assist employers in the determination of exempt vs. nonexempt employees. A) SS-4 B) ID-8 C) W-10 D) SS-8 - ✔✔D) SS-8 The difference between the tipped employee minimum wage and the federal minimum wage is called the ________. A) Tip allowance B) Wage credit C) Tip credit D) Wage allowance - ✔✔C) Tip credit A nonexempt salaried worker who received $37,500 in annual compensation for a 40-hour standard workweek has an hourly rate of ________. (Round to the nearest cent.) A) $19.03 B) $18.53 C) $18.31 D) $18.03 - ✔✔D) $18.03 A nonexempt salaried worker who received $46,500 in annual compensation for a 40-hour standard workweek has an hourly rate of ________. (Round to the nearest cent.) A) $23.26 B) $22.86 C) $22.64 D) $22.36 - ✔✔D) $22.36 Joanna a salaried nonexempt employee earns a salary of $38,950 for a standard 37.5-hour workweek and is paid weekly. During a weekly period she worked 6 hours of overtime. Her gross pay for the week would be________. (Do not round intermediate calculations. Round final answer to two decimal places.) A) $928.81 B) $936.52 C) $868.88 D) $894.22 - ✔✔A) $928.81 Mac is a cook at a local restaurant and earns $9.15 per hour. He occasionally serves as the crew chief for which he receives an additional $2.50 per hour. During a biweekly pay period he had the following time data: Cook: 75 hours (including 8 hours overtime) Crew chief: 13 hours His gross pay for the pay period would be ________. (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $841.80 B) $902.58 C) $878.31 D) $874.30 E) $841.80 - ✔✔D) $874.30 Huynh is a piece rate worker who creates custom molds for a plastics manufacturer. During a 40-hour workweek he created 22 molds at a piece rate of $38.25 per mold. His hourly rate during the workweek is ________. (Do not round intermediate calculations. Round final answer to two decimal places.) A) $18.38 B) $21.04 C) $19.46 D) $20.96 - ✔✔B) $21.04 Maya is compensated using a salary-plus-commission basis for her work. Her annual base salary is $32,000. During a semimonthly pay period she made $18,500 in sales for which she receives a 2% commission. Her gross pay for the semimonthly period is ________. (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $1,333.33 B) $1,523.55 D) Computing the column and row totals. - ✔✔C) Ensuring that the sum of the column totals equals the sum of the row totals. According to the FLSA when must overtime be paid to nonexempt employees? A) Any time the employee works more than 8 hours per day. B) Any time the employee works more than 6-days during a one-week period. C) Any hours worked in excess of 40 in a 7-day 168-hour period. D) Any hours deemed overtime by the employee's supervisor. - ✔✔C) Any hours worked in excess of 40 in a 7-day 168-hour period. Adam is a nonexempt employee who is single with one dependent and earns $15 per hour and has a standard 40-hour workweek. During a weekly pay period he worked 46 hours. What is Adam's gross pay for the period? (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $600.00 B) $690.00 C) $735.00 D) $1,035.00 - ✔✔C) $735.00 Daanyal is a salaried nonexempt employee who is married with two dependents and earns $34,000 per year. During a biweekly pay period he worked 88 hours. His standard workweek is 40 hours. What is Daanyal's gross pay for the period? (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $1,307.69 B) $1,438.80 C) $1,489.26 D) $1,503.85 - ✔✔D) $1,503.85 Cyrus is a tipped employee in Illinois. He is single with one dependent and the minimum cash wage in Illinois is $4.95 per hour for a 40-hour workweek. The tip credit in Illinois is $3.30 per hour (i.ethe minimum wage in Illinois is $8.25 per hour), and tips are NOT included in overtime calculations. During a one-week period Cyrus worked 52 hours and earned $180 in tips. What is his gross pay? (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $351.60 B) $526.50 C) $426.80 D) $510.00, - ✔✔B) $526.50 Maribeth is a wedding cake designer who earns $120 per completed cake. She is married with zero dependents and earns minimum wage (i.e. $7.25 per hour) for non-productive time during a 40-hour workweek. During a weekly pay period she worked 45 hours 3 of which were non-productive time and completed 9 cakes. What is Maribeth's gross pay? Note: Do not consider any overtime hours while calculating the gross pay. (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $1,101.75 B) $1,161.75 C) $1,176.25 D) $1,569.38, - ✔✔A) $1,101.75 Bruce is a nonexempt employee at Grissom Industries where he works in both the manufacturing and design departments. He is married with three dependents and is paid biweekly. He earns $25 per hour in the manufacturing department and $31.50 per hour in the design department. During the most recent biweekly pay period he worked a total of 92 hours 20 of which were in the design department. All overtime was in the manufacturing department. What is his gross pay? (Do not round intermediate calculations. Round final answer to 2 decimal places.) A) $2,580.00 B) $2,638.50 C) $2,697.00 D) $3,147.00 - ✔✔A) $2,580.00 Wyman is a doctor who works at Central Hospital which has different shift lengths. During a two-week period he worked 95 hours. Under the _________ rule how many hours worked would be considered as overtime? A) 4 and 40 & 10 hours B) 4 and 40 & 15 hours C) 8 and 80 & 10 hours D) 8 and 80 & 15 hours - ✔✔D) 8 and 80 & 15 hours Gross pay is the amount of employee compensation prior to deducting any amounts for taxes or other withholdings. true or false - ✔✔true Salaried employees may be classified as nonexempt. true or false - ✔✔true A firm is always exempt from FLSA provisions if it has fewer than 5 employees. true or false - ✔✔false The tipped minimum wage is $2.13 per hour for all states. true or false - ✔✔false Federal policy explains clear differences between exempt and nonexempt employees. true or false - ✔✔false To compute the hourly rate for an employee with a 40-hour standard workweek you would divide the annual salary by 2, 080. true or false - ✔✔true