Multiple Choice
Making the right choices with your money—managing your money—involves knowing how to:
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1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Withholdings and deductions are typically associated with which type of accounting?
A
Managerial accounting
B
Payroll accounting
C
Tax accounting
D
Cost accounting
Verified step by step guidance1
Understand the context of the question: The problem is asking about the type of accounting that deals with withholdings and deductions, which are typically related to employee wages and salaries.
Recall the definition of Payroll Accounting: Payroll accounting focuses on recording and managing all financial aspects related to employee compensation, including wages, salaries, withholdings (e.g., taxes, benefits), and deductions.
Eliminate unrelated options: Managerial accounting deals with internal decision-making, cost accounting focuses on analyzing production costs, and tax accounting is concerned with tax compliance and planning. These are not directly related to withholdings and deductions.
Identify the correct answer: Since withholdings and deductions are specific to employee compensation, they fall under the scope of Payroll Accounting.
Conclude that Payroll Accounting is the correct type of accounting associated with withholdings and deductions.
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