Proper Payroll Accounting Methods Are Important for a Business for All

question 65

Multiple Choice

Proper payroll accounting methods are important for a business for all the reasons below except

• A) good employee morale requires timely and accurate payroll payments.
• B) payroll is subject to various federal and state regulations.
• C) to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies.
• D) payroll and related payroll taxes have a significant effect on the net income of most businesses.

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Definitions:

Fair Value Allocations

The process of assigning fair value to the individual assets and liabilities acquired during a business combination.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit over time.

Acquisition Method

An accounting process used during the consolidation of financial statements that involves combining the buying and selling entities' assets and liabilities.

Consolidated Financial Statements

Financial documents that combine the accounting records of a parent company and its subsidiaries, presenting the financial position as if they were a single entity.