FPC-Remote APA Exam Questions and Free Practice Test

Question 31

- (Topic 2)
The withholding of federal income tax is regulated by the:

A. ACA

B. IRC

C. FICA

D. FUTA

Correct Answer:B
✑ The Internal Revenue Code (IRC) regulates the withholding of federal income tax (FIT).
✑ FICA (C) governs Social Security & Medicare taxes.
✑ FUTA (D) applies to unemployment tax but does not regulate withholding. References:
✑ Internal Revenue Code (IRC) Section 3402
✑ IRS Publication 15 (Employer??s Tax Guide)

Question 32

- (Topic 2)
Which activity does NOT indicate a data breach has occurred?

A. Employee personal data change in the self-service portal

B. Activity in the payroll system outside normal work times

C. Excessive requests received for certain files or information

D. Employee accounts have been locked without explanation

Correct Answer:A
✑ Employee data changes in a self-service portal (A) are normal activitiesunless unauthorized.
✑ Payroll activity outside normal work hours (B), excessive file access (C), and
unexplained account locks (D) may indicate security breaches. References:
✑ Payroll System Security Standards (Payroll.org)
✑ IRS Data Security Guidelines

Question 33

- (Topic 1)
The DOL can issue fines for all the following violations EXCEPT:

A. Overtime

B. Sick Leave

C. Child Labor

D. Minimum Wage

Correct Answer:B
Comprehensive and Detailed Explanation:TheDepartment of Labor (DOL)enforces violations related to:
✑ Overtime (A)– Under theFair Labor Standards Act (FLSA).
✑ Child Labor (C)– Protecting workers underage 18.
✑ Minimum Wage (D)– Enforcing thefederal minimum wage.
✑ Option B (Sick Leave) is incorrectbecause the DOLdoes not regulate paid sick leave at the federal level.Sick leave laws vary by state, but there isno federal mandaterequiring paid sick leave.
Reference:
FLSA – Wage and Hour Division (DOL) Enforcement Payroll.org – Federal and State Payroll Compliance

Question 34

- (Topic 1)
Where should a firm??s business transactions FIRST be recorded?

A. Balance Sheet

B. General Ledger

C. Journal

D. Trial Balance

Correct Answer:C
Comprehensive and Detailed Explanation:AJournal(Option C) is thefirst placewhere business transactions are recorded inchronological orderbefore posting to theGeneral Ledger.
✑ Option A (Balance Sheet)is incorrect because it is afinancial statement, not a
transaction log.
✑ Option B (General Ledger)is incorrect because transactionsmust first be recorded
in a journal before being posted.
✑ Option D (Trial Balance)is incorrect because it isa summary of ledger balances used for reconciliation.
Reference:
GAAP Accounting Principles – Transaction Recording Process Payroll.org – Payroll Accounting Workflow

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