As the payroll system processes each payroll transaction,the system should also perform which activity listed below?
A) allocate labor costs to appropriate general ledger accounts
B) use cumulative totals generated from a payroll to create a summary journal entry to be posted to the general ledger
C) both A and B above
D) The HRM system should not perform either activity A or B.

Question

Quizplus · Accepted Answer

The payroll system should not only process payroll transactions, but also allocate labor costs to the appropriate general ledger accounts and create summary journal entries to be posted to the general ledger. This is necessary in order to accurately record and track labor expenses and ensure that the financial statements reflect accurate information. Therefore, the best choice is C, as it includes both activities.

As the Payroll System Processes Each Payroll Transaction,the System Should