An Important Reconciliation in the Payroll System Is

question 50

Multiple Choice

An important reconciliation in the payroll system is

• A) general ledger compares the labor distribution summary from cost accounting to the disbursement voucher from accounts payable
• B) personnel compares the number of employees authorized to receive a paycheck to the number of paychecks prepared
• C) production compares the number of hours reported on job tickets to the number of hours reported on time cards
• D) payroll compares the labor distribution summary to the hours reported on time cards

---

Definitions:

Statement of Stockholders' Equity

A financial statement showing the changes in the equity section of the balance sheet during a certain period, including shares issued, dividends paid, and earnings.

Income Statement

A financial document detailing a company's revenues, expenses, and net income over a specific period, illustrating its profitability.

Liabilities

Liabilities are the financial obligations of a company, including debts and other amounts owed to creditors, which must be settled over time.

Stockholders' Equity

Stockholders' equity represents the residual interest in the assets of a corporation after deducting liabilities, essentially what is owned by the company's shareholders.