If a fiRm Accrues the Payroll Due but Not Paid

question 60

Multiple Choice

If a firm accrues the payroll due but not paid at the end of a financial period, what should it do on the first day of the next financial period?

• A)It should create a reminder about the accrual to ensure accuracy of computations on the next pay date.
• B)It should make a note to create the reversing entry at the end of the next financial period.
• C)It should disburse the accrued pay to the employees.
• D)It should create a reversing entry in the General Journal.

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