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:

Bailment

The transfer of a chattel by the owner to another for some purpose, with the chattel to be later returned or dealt with in accordance with the owner’s instructions.

Reasonable Care

The standard of care that a reasonably prudent person would observe under a given set of circumstances.

Bailee for Reward

A bailee for reward refers to an individual or entity that has temporary possession of someone else’s property in exchange for payment, bound to take care of the property.

Negligent Loading

The improper or careless loading of cargo onto a mode of transportation, leading to damage or accidents.