Outsourcing the Payroll Process

question 67

Multiple Choice

Outsourcing the payroll process:

• A) Relieves the company of certain task completion but not the review process.
• B) Relieves the company of the review process but not the task completion.
• C) Relieves the company of all liability for payroll completion and accuracy.
• D) Relieves the company of the task completion and the review process.

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Definitions:

AASB 2

An Australian Accounting Standards Board standard that specifies the accounting requirements for share-based payment transactions.

Option Pricing Models

Mathematical models used to determine the fair value of options, considering various factors such as the underlying asset price, strike price, volatility, and time to expiration.

Share-based Payment

Share-based payment is a transaction in which the entity acquires goods or services by issuing shares, share options, or other equity instruments, or by incurring liabilities to the supplier for amounts based on the price of the entity’s shares or other equity instruments.

Fair Value

The price at which one could sell an asset or the cost to assign a liability in a systematic transaction with individuals in the marketplace on the date of valuation.