Why Is a Separate Payroll Account Used to Clear Payroll

question 49

Multiple Choice

Why is a separate payroll account used to clear payroll checks?

• A)For internal control purposes,to help limit any exposure to loss by the company.
• B)To make bank reconciliation easier.
• C)To separate payroll and expense checks.
• D)All of the above are correct.

---

Definitions:

Elite Theory

Holds that small groups occupying the command posts of America’s most influential institutions make the important decisions that profoundly affect all members of society. Moreover, they do so without much regard for elections or public opinion.

High-Status Groups

High-status groups refer to social groups that are considered superior within a society due to certain attributes like wealth, power, or prestige.

Democratic Politics

A political system in which power is practiced directly by the people or through elected representatives, characterized by free and fair elections, rule of law, and protection of rights.

Market Economy

An economy in which the production and distribution of goods and services are determined by supply and demand, rather than state intervention.