Multiple Choice
How does a payroll accountant typically keep track of employee pay disbursals?
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9. Current Liabilities
Payroll and Payroll Taxes
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following enables you to handle the practice's payroll without generating payroll checks manually?
A
Recording payroll expenses in a manual ledger
B
Calculating payroll by hand
C
Using payroll processing software
D
Writing checks individually for each employee
Verified step by step guidance1
Understand the concept of payroll processing: Payroll processing involves calculating employee wages, deductions, taxes, and generating payments efficiently. Manual methods can be time-consuming and prone to errors.
Evaluate the options provided: Each option represents a different method of handling payroll. Consider the efficiency, accuracy, and automation provided by each method.
Option 1: Recording payroll expenses in a manual ledger. This method involves manually tracking payroll expenses, which does not automate the process of generating payroll checks.
Option 2: Calculating payroll by hand. This method requires manual calculations, which can be error-prone and does not automate check generation.
Option 3: Using payroll processing software. This software automates payroll calculations, deductions, tax compliance, and generates payroll checks efficiently, making it the most effective solution for handling payroll without manual intervention.
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