The Pay Cheques Journal Has No Column On-Screen to Allocate

question 24

Multiple Choice

The pay cheques journal has no column on-screen to allocate payroll expenses,therefore -

• A)we must open a new division for payroll
• B)we must post the payroll entry before allocating expenses
• C)we must choose the allocate tool or the allocate menu option to open the division allocation screen
• D)we must access the division account from the payroll journal

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Definitions:

Accrual Basis

An accounting method that recognizes revenue when earned and expenses when incurred, regardless of when cash is exchanged.

Wages Expense

The cost incurred by a company for the work performed by its employees, reflected in its financial statements.

Wages Payable

An account that shows the total amount of wages earned by employees that the company has not yet paid.

Accounting System

A methodical procedure of accurately and timely recording and organizing financial transactions and information.