Why Would a Company Use a Separate Payroll Cash Account

question 96

Multiple Choice

Why would a company use a separate payroll cash account?

• A) Provides for better internal control
• B) Ease of account reconciliation
• C) Determine whether or not the employee has cashed their check
• D) All of the above are correct.

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Definitions:

Fair Value

The financial gain from a sale of an asset or the investment in transferring a liability in an orderly exchange among market participants on the date set for assessment.

Remuneration Expense

The total cost incurred by an entity for the payment of salaries, wages, and other forms of compensation to employees.

Vesting Period

The vesting period is the time during which an employee must wait to earn the right to fully own employer-provided stock options or contributions to a retirement plan.

Remuneration Expense

The total cost incurred by a company to compensate its employees, including wages, salaries, and benefits.