Why is a separate payroll account used to clear payroll checks?
A)For internal control purposes,to help limit any exposure to loss by the company.
B)To make bank reconciliation easier.
C)To separate payroll and expense checks.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A separate payroll account is used for internal control purposes to limit exposure to loss by the company. Keeping payroll funds separate also helps with reconciling accounts and separating payroll and expense checks.

Why Is a Separate Payroll Account Used to Clear Payroll