In General, How Are the Expenses Associated with the Payroll

question 44

Multiple Choice

In general, how are the expenses associated with the payroll accountant's labor allocated in a firm?

• A) They are allocated to one department.
• B) They are billed directly to a customer.
• C) They are reported as part of the firm's overhead.
• D) They are billed directly to each department manager.

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Definitions:

Capitalize

The accounting practice of recording a cost or expense on the balance sheet for purposes of delaying full recognition of the expense over time through depreciation or amortization.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Minimum Lease Payments

The lowest amount that a lessee is expected to pay over the lease term for the lease of property, plant, or equipment.

Leased Asset's Fair Value

The estimated market value of an asset under lease determined at the inception or revaluation point of the lease agreement.