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) banks don't like to commingle 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 help limit any exposure to loss by the company by isolating payroll transactions from other financial activities.

Why Is a Separate Payroll Account Used to Clear Payroll