What Is the Purpose of a General Ledger Payroll Clearing

question 36

Multiple Choice

What is the purpose of a general ledger payroll clearing account?

• A) to check the accuracy and completeness of payroll recording and its allocation to cost centers
• B) to make the bank reconciliation easier
• C) to make sure that all employees are paid correctly each week
• D) to prevent the cashier from having complete control of the payroll cycle

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Definitions:

Relationship Duration

The length of time that a relationship has been in existence or continues to exist.

Social Exchange Theory

Social Exchange Theory is a social psychological perspective that explains social change and stability as a process of negotiated exchanges between parties.

Mutually Beneficial Relationship

A relationship in which all parties involved gain benefits or advantages from their association with each other.

Equity Theory

A theory of motivation that suggests individuals assess their relationships in terms of inputs, outputs, and the comparison with others, seeking fairness in exchanges.