In a Payroll Entry, a Credit to Accounts Receivable Indicates

question 45

Multiple Choice

In a payroll entry, a credit to Accounts Receivable indicates that

• A) an employee is paying a bill owed to the company.
• B) a customer is paying a bill owed to the company.
• C) the employer is paying a bonus to the employee.
• D) a mistake has been made in an employee's paycheck.
• E) the company underpaid the employee the previous pay period.

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Definitions:

Acquisition

The act of obtaining control of another company or asset, typically through purchase or merger.

Corporation

A corporation is a legal entity that is separate and distinct from its owners, formed by a group of people or shareholders, and recognized as having rights and responsibilities similar to those of an individual.

Statutes

Laws or acts enacted by a legislative body to regulate, authorize, sanction, grant, declare, or restrict.

Share Exchanges

The process of trading shares of different companies, often used in mergers and acquisitions to consolidate ownership.