Which of the following control plans transfers the exact amount of funds necessary to cover payroll checks and related expenses?

Question

Quizplus · Accepted Answer

Using a payroll clearing account allows for the exact amount of funds necessary to cover payroll checks and related expenses to be transferred. This account acts as a buffer between the company's bank account and its payroll account, ensuring that only the exact payroll amount is transferred and preventing overdrafts or insufficient funds. The other options provided do not necessarily ensure the exact amount is transferred.

Which of the Following Control Plans Transfers the Exact Amount