What Is the Effect of Payroll-Related Legislation on Payroll Practice

question 23

Multiple Choice

What is the effect of payroll-related legislation on payroll practice?

• A) Legislation explicitly dictates specific activities of payroll accountants.
• B) Legislation has prescribed the format and delivery of a payroll system.
• C) Legislation highlights the need for firms to create well-designed payroll systems.
• D) Legislation has alleviated the need for a company to design its own payroll system.

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Definitions:

Development Costs

Costs incurred in the design and implementation of new products or processes, which can often be capitalized and amortized over time.

Actuarial Gains

Increases in the projected benefits of a pension plan resulted from changes in actuarial assumptions or variance from expected experience.

Transition Date

The specific point in time at which a new policy, regulation, or accounting principle is adopted by an entity.

Reporting

The process of preparing and distributing financial statements that reflect a company's financial performance and position.