The Journal Entry to Record Payroll

question 174

Multiple Choice

The journal entry to record payroll:

• A)debits salary expense for the gross payroll and credits salary payable for the net pay.
• B)credits income tax payable for the income tax that has been withheld from the employees.
• C)credits FICA payable for the social security and Medicare tax withheld from the employees.
• D)does all of the above.

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Definitions:

Formalization

The extent to which rules, procedures, and standards are written and explicitly articulated within an organization.

Duplication

The act of making an exact copy of something, often used in the context of data replication or the reproduction of research results for validation.

Underutilization

The situation where resources, such as personnel, equipment, or capacity, are not being used to their full potential.

Departmentalization

Departmentalization is an organizational strategy of dividing a company or institution into specialized sectors or departments, each focused on a distinct function or area of operation.