The Structure of the Payroll Entry to Record the Payroll

question 90

Multiple Choice

The structure of the payroll entry to record the payroll is

• A) debit Wages Payable; credit each employee deduction.
• B) debit Wages Payable; credit Cash.
• C) debit Wages Expense; credit each employee deduction; credit Salaries Payable.
• D) debit Wages Expense; credit each employee deduction.
• E) debit Wages Payable; credit Sales Expense; and credit Cash.

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Definitions:

Labor Relations

The relationship and negotiations between employers and their employees, often involving unions.

Terminating

The act of bringing something to an end or conclusion, often used in the context of contracts, employment, or processes.

Practice Budget

The financial plan for the operation of a medical practice, outlining the expected revenues and expenditures.

Revenues

Income generated from business activities or services before any expenses are deducted.