The Employer Records Deductions from the Employee's Paycheque

question 62

Multiple Choice

The employer records deductions from the employee's paycheque

• A) as debits to expense accounts.
• B) as credits to liability accounts until paid.
• C) as debits to asset accounts until paid.
• D) as credits to capital accounts.

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Definitions:

Rate Variance

Rate Variance is the difference between the standard cost and actual cost paid for something, often analyzed in budgeting to manage financial performance.

Budget Reports

Budget Reports compare the actual financial operations against the planned or budgeted figures to help in financial planning and control.

Monthly

Pertaining to or calculated on the basis of one month.

Master Budget

A comprehensive financial planning document that consolidates all of a business's budgets and plans for the future, including sales, production, and financial budgets.