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UC Payroll Process FE

Final exam for students of 2nd year.

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gelilalemlemadem043640
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31 views

UC Payroll Process FE

Final exam for students of 2nd year.

Uploaded by

gelilalemlemadem043640
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Jigjiga Universal Medical and Business College

Department of Accounting and Finance

Level III Evening program-2015 Entries


Final Exam for the Unit of Competency: Process Payroll
Maximum Allowed Time: 80 minutes Exam Date: September 5, 2024
Trainer’s Name: Adem Mohammed (MBA)
Part I-TRUE or FALSE Items
Instruction: Write the word “TRUE” if the given statement is correct otherwise write the word
“FALSE” on the answer sheet.
1. The concept payroll is often referred to the total amount paid to employees of a firm as a
compensation for the service rendered to a firm in a given period of time.
2. A payroll discrepancy is any difference between what should be calculated and what is included
on the employee's paycheck.
3. Payroll activities involve four functions: hiring employees, timekeeping, preparing the payroll,
and paying the payroll.
4. A pay period is a recurring length of time over which employee time is recorded and paid for.
5. Employee additions are the amounts subtracted from an employee’s gross pay to reach net pay.
6. Hardship allowance is a sum of money given to an employee by his employer to compensate for
an inconvenient circumstance caused by the employer on the employee.
7. An allowance payable to cashiers to cover the risk of possible cash shortage is known as medical
allowance.
8. Representation allowance refers to an allowance payable to an employee who represents his/r
employer (undertaking) in different places.
9. Educational allowance is a common practice in all governmental and private organizations in
Ethiopia.
10. Compensation for Accident or Death treated as an employment income since it is a pay for
exerted damage or death.
Part II-Multiple Choice Items
Instruction: Choose the correct answer from the given alternatives under each questions and write
your answer on the answer sheet.
1. Which one of the following is correctly stated?
A. Termination of employment contract can take place by resignation, dismissal, compulsory
retirement, attaining superannuation, or voluntary retirement.
B. Retirement benefit contribution by an employer to his employee is considered as additional
employment benefit to the employee.
C. Severance pay is a payment from an employer to his employee who has completed his
probation.
D. For salaried employees, annual gross pay is simply their salary.
E. All of the above

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2. The length of time covered by each payroll payment is known as_________________.
A. The Pay Day B. The Pay Period C. Gross Payment D. Net Payment

3. _________________the last day of the pay period.


A. The Pay Day B. The Pay Period C. Gross Payment D. Net Payment
4. The entire list of employees of a business along with each employee’s gross earnings, deductions
and net pay (or the take home pay) for a particular payroll period is known as______.
A. Employee Earnings Record C. Pay Check
B. Payroll Register (Sheet) D. Withholding Taxes
5. ________________ A monthly allowance given to an employee because of assignment to a
relatively hot region.
A. Hardship Allowance B. House allowance
B. Position Allowance D. Desert Allowance
6. Select the odd one among the listed below
A. Hardship allowance C. Education allowance
B. Milk allowance D. Position allowance
7. Which one of the following is true about over time payment rate?
A. A worker shall be entitled to be paid at the rate of 1.25 if he/she has worked an overtime
hours form 10 P.M. in the evening to 6 A.M in the morning.
B. A worker shall be entitled to be paid at the rate of 1.5 if he/she has worked an overtime hours
form 5 P.M. in the evening to 10 P.M in the evening.
C. A worker shall be entitled to be paid at the rate of 2.5 if he/she has worked an overtime hours
on rest days.
D. A worker shall be entitled to be paid at the rate of 2.5 if he/she has worked an overtime hours
on holidays.
8. Which on of the following is wrongly stated?
A. No pregnant woman shall be assigned to night work between 10 PM and 6AM or be
employed on overtime work.
B. It is prohibited to employ young worker on: night work between 10 PM and 6 AM overtime
work, rest days; or public holidays.
C. Normal hours of work for young workers shall not exceed seven hours a day.
D. It is permissible to employ persons less than 14 years of age.
9. Which one of the following is correct about payments in cash or benefits in kind are exempted
from taxation?
A. Medical costs incurred by employer for treatment of employees.
B. Transportation allowances paid by employer to its employees.
C. Reimbursement by employer of traveling expenses incurred on duty by employees.
D. Traveling expenses paid to transport employees from elsewhere to place of employment and
to return them upon completion of employment.
E. All of the above
10. One of the following is not correct about pension contribution of an employee?
A. Only permanent employees are subjected to pension contribution.
B. Only temporary employees are subjected to pension contribution
C. In Ethiopia the retirement age of an employee is 65 years of old.
D. NGOs’ are also pension contribution deduction in the form of provident fund

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Part III- Practical workout Item
Instruction: Correctly work out the following question with a clear and neat handwriting.
1. Assume that Ethiopian Federal Government Tax Authority, pays the salary of its employees
during Sene 30, 2016.The following blow are data related to the month of Sene, 2016.

Employe Name of Employee Basic salary Overtime hours Duration of overtime work
e ID No.
01 Ahmed Abdi Birr 7,800 50 25 hours on rest days and the remaining
hours on holidays
02 Helen Bedilu 10,000 125 25 hours from 10 p.m. in the evening to 6
a.m. in the morning and the remaining hours
from 5 p.m. in the afternoon to 10 p.m. in
the evening
03 Nimo Mohammed 5,750 25 All hours are done on holidays
04 Tesfaye Abera 3,480 60 ¼ of the hours on rest days and ¾ of the
hours on holidays
05 Raju Kemal 11,900 15 All hours are done from 10 p.m.in the
evening till 6 a.m. in the morning

Additional Information
 Management of the factory usually expects a worker to work 40 hours in a week and during Sene,
2016, all workers have done as they have been expected except Raju Kemal he must work 48
hours per week.
 All employees are permanent employees except Tesfaye Abera .
Required
I. Prepare the payroll register
II. Prepare a journal entry to record the salary expense for the month of June 2016
III. Prepare journal entries to record the payments of amounts withheld to the concerned
authorities
Answer Sheet
Name: _________________________________ID.No.__________________

Part I-TRUE or FALSE Items (15%) Part II- Multiple Choice Items (15%)
1.____________6.____________ 1.____________6.____________
2.____________7.____________ 2.____________7.____________
3.____________8.____________ 3.____________8.____________
4.____________9.____________ 4.____________9.____________
5.___________10.____________ 5.___________10.____________

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Part III-Workout Item (30%)

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