The Procedure for a Payroll Accrual Requires Identifying the Portion

question 99

Multiple Choice

The procedure for a payroll accrual requires identifying the portion of the payroll that falls after the payday but within the accounting period, and:

• A)paying employees that amount.
• B)recording the amount as an unusual cost.
• C)providing for both the expense and the liability for the unpaid payroll with an accrual entry when the books a closed.
• D)preparing a supporting note on the financial statement as to the amount of the unpaid payroll.

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Definitions:

Related Income

Income generated from transactions or relationships between affiliated entities or parties.

Revaluation

The process of adjusting the exchange rate of a currency or the value of assets and liabilities to reflect their true value.

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A small freshwater fish often used in scientific research due to its genetic similarities to humans.

Journal Entries

A record in accounting that is used to log debits and credits for transactions and events into the accounting system.