If a Company Uses a Special Payroll Bank Account

question 161

Multiple Choice

If a company uses a special payroll bank account:

• A) The company does not need to issue paychecks.
• B) The company draws one check for the entire payroll on the regular bank account and deposits it in the payroll bank account.
• C) The company must use a federal depository bank for the payroll bank account.
• D) There is no need for a payroll register.
• E) There is no need to issue W-2's.

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Definitions:

Per-annum Rate

Another term for annual rate, indicating the interest rate or growth rate over a single year.

Bank Loan

Money lent by a bank to a customer, usually with interest, that is expected to be repaid within a certain period.

Outstanding Principal

The remaining amount of money borrowed that has not yet been repaid.

Accrued

Accumulated over time but not yet paid or received, typically referring to interest or income.