Upon successful completion of this course, participants will be able to:

Chapter 1

• Define a payroll cycle.
• Identify when employees are paid in a biweekly payroll system and in a semimonthly payroll system and a key difference between the two systems.
• Name a timekeeping solution for an hourly employee who nearly always works 40 hours a week.
• Choose an action that will not help protect the confidentiality of payroll information.

Chapter 2

• Identify a characteristic of the chart of accounts.
• Cite why wages are accrued.
• List a permissible way to record a commission expense.
• Name a reason a company with few hourly staff might avoid wage accrual.
• Specify when a bonus expense should not be accrued.
• Cite why the accrued benefits journal entry is not commonly used.
• Identify how to classify an employee advance and a use of a stock subscription plan.

Chapter 3

• Specify proper accounting when stock is issued to an employee.
• Define the reload feature and implicit service period.
• List a characteristic of stock with a highly volatile price.
• Name a consequence of a stock option expiring unused.
• Cite an assumption of the lattice pricing model for stock options.
• Identify when a stock-based compensation arrangement is likely to be classified as a liability.