APA Updated CPP-Remote Exam Questions and Answers by margo

In fundamental accounting, an asset is a resource owned or controlled by a company that possesses economic value and is expected to provide future benefit. Accounts receivable is a classic example of a current asset, representing money that is owed to the business by its customers for goods or services that have already been delivered but not yet paid for. This contrasts with liabilities, such as accounts payable (Option A), which represent debts or obligations the company owes to third parties. Employee salaries (Option B) are typically categorized as expenses on the income statement once the work is performed, although unpaid amounts at the end of a period are recorded as liabilities. A payroll system lease (Option D) is generally recorded as an operating expense or a liability depending on the lease structure. Recognizing these classifications is essential for accurate balance sheet management.

Comprehensive and Detailed in Depth Explanation:

Base Pay for 46 hours: 46 × $10.00 = $460.00

Production Bonus: 460 units × $0.05 = $23.00

Total Regular Earnings (before OT calc): $460 + $23 = $483.00

Regular Rate of Pay: $483 / 46 hrs = $10.50/hour

Overtime Pay (6 hrs): 6 × $10.50 × 0.5 = $31.50

Total Gross Pay: $483 + $31.50 = $514.50

✅ So, Answer C is correct.

Comprehensive and Detailed in Depth Explanation:

Regular Hours (non-overtime): 87 – 4 (OT) – 3 (DT) = 80 hours

Regular Pay: 80 × $10.20 = $816.00

Overtime Pay: 4 × ($10.20 × 1.5) = 4 × $15.30 = $61.20

Double Time Pay: 3 × ($10.20 × 2) = 3 × $20.40 = $61.20

Total Gross Pay: $816.00 + $61.20 + $61.20 = $938.40

✅ Correct answer: D – $938.40

Note: The 401(k) deferral affects net pay, not gross pay .

Comprehensive and Detailed In-Depth Explanation:

Under IRS Code Section 129 , the maximum dependent care assistance exclusion is:

$5,000 if single or married filing jointly

$2,500 if married filing separately

So, an employee filing as married but separately is limited to $2,500 in pre-tax dependent care benefits annually.