Why would a company use a separate payroll cash account?
A) Provides for better internal control
B) Ease of account reconciliation
C) Determine whether or not the employee has cashed their cheque
D) All of the above are correct.

Question

Quizplus · Accepted Answer

A separate payroll cash account provides for better internal control as it segregates payroll funds from other company funds, making it easier to track and manage. It also helps with ease of account reconciliation, allowing for quick and accurate balancing of payroll transactions. In addition, it can be used to determine whether or not an employee has cashed their cheque, providing further internal control and ensuring accurate and timely payments. Therefore, all of the above options are correct.

Why Would a Company Use a Separate Payroll Cash Account