A Payroll "Clearing Account" Is a Temporary Account That Holds

question 25

True/False

A payroll "clearing account" is a temporary account that holds payroll transactions until final accounting entries are prepared.

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Definitions:

Collect Funds

To collect funds means to gather or accumulate money from various sources, often in the context of payments or fundraising activities.

Debit Card

A payment card that deducts money directly from a consumer’s checking account to pay for a purchase.

Zero-balance Account

A checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an exact amount to cover checks presented.

Float Management

Strategies employed by companies to manage the time between issuing and cashing payments to optimize available cash flow.