The purpose of a general ledger payroll clearing account is
A)to check the accuracy and completeness of payroll recording and its allocation to cost centers.
B)to make the bank reconciliation easier.
C)to make sure that all employees are paid correctly each week.
D)to prevent the cashier from having complete control of the payroll cycle.

Question

Quizplus · Accepted Answer

The purpose of a general ledger payroll clearing account is to check the accuracy and completeness of payroll recording and its allocation to cost centers. It is used to reconcile payroll accounts and ensure that all expenses related to payroll are properly recorded in the correct accounts. The clearing account holds transactions temporarily until they can be properly allocated to the appropriate accounts.

The Purpose of a General Ledger Payroll Clearing Account Is