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

Using a separate payroll account for payroll checks is primarily for internal control purposes, helping to limit exposure to loss by segregating payroll funds from other company funds.

Why Is a Separate Payroll Account Used to Clear Payroll