Small Corporation Uses a Wages Clearing Account for Its Payroll

question 17

Multiple Choice

Small Corporation uses a Wages Clearing Account for its payroll disbursements.At the end of February a reasonably large debit balance remained in this account.The most likely reason for this is that

• A)More labour cost had been assigned to the expense accounts than had been paid.
• B)Some labour cost had not been properly classified in the expense accounts.
• C)Some employees had not yet cashed their cheques.
• D)Not enough cash had been transferred to the bank account.

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Definitions:

Warm Currents

Oceanic water movements that transfer heat from tropical to polar regions, influencing climate and weather patterns.

Precipitation

Any form of water, such as rain, snow, sleet, or hail, that falls from the atmosphere to the Earth's surface.

Curved Ridges

Natural elevations or landforms that form a curved or arc-shaped pattern, typically the result of tectonic, erosional, or volcanic activities.

Glacier

A large, slow-moving mass of ice, formed by the accumulation and compaction of snow, which shapes the landscape as it flows.