The Employer Should Record Deductions from Employee Pay As

question 106

Multiple Choice

The employer should record deductions from employee pay as:

• A)Employee receivables.
• B)Payroll taxes.
• C)Current liabilities.
• D)Wages payable.
• E)Employee payables.

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Definitions:

Adjusted Cash Balance

The cash amount reflected in the accounting records after adjustments for items like outstanding checks and deposits-in-transit.

Deposits In Transit

Funds that have been sent to a bank but not yet recorded by the bank in the account holder's bank statement.

Outstanding Checks

Checks that have been issued by a company but have not yet been cashed or cleared by the bank.

Petty Cash

A small amount of cash on hand used for minor or incidental expenses within a business.