Why Must Pay Period Information Be a Part of an Employee's

question 75

Multiple Choice

Why must pay period information be a part of an employee's payroll file?

• A) To document satisfaction of court-ordered obligations.
• B) As a means of ensuring pay equality among employees.
• C) To ensure that the employee receives all compensation earned.
• D) As a means of tracking time worked for overtime compensation purposes.

---

Definitions:

Revenues

The total amount of money received by the company for goods sold or services provided during a specific time period before any expenses are subtracted.

Closing Entries

Entries recorded at the close of an accounting period to move balances from temporary accounts to permanent ones.

Owner's Equity Account

An account on a company's balance sheet that represents the total amount invested by the owners plus any retained earnings or losses.

Real Accounts

Accounts related to assets, liabilities, and equity that are not closed at the end of the accounting period and are carried forward to the next period.