A Payroll Clearing Account Is Used to

question 21

Multiple Choice

A payroll clearing account is used to

• A)check the accuracy of payroll costs.
• B)speed up payroll transaction processing.
• C)reduce the transaction costs associated with payroll transaction processing.
• D)eliminate the need to manually record payroll transactions.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and statement of cash flows.

Bank Loans

A sum of money borrowed from a bank that must be repaid with interest over a predetermined period.

Assets

Resources owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Internal Auditor

A professional within an organization responsible for evaluating the effectiveness of its risk management, control, and governance processes.