1. In ideal circumstances, each payroll check is delivered personally to the employee who signs a receipt for it. 2. The amount of income taxes withheld from employee gross pay is an expense to the employer. 3. An entry is made debiting Accrued Payroll and crediting Cash when payroll checks drawn against a payroll checking account are issued.
1. In ideal circumstances, each payroll check is delivered personally to the employee who signs a receipt for it. 2. The amount of income taxes withheld from employee gross pay is an expense to the employer. 3. An entry is made debiting Accrued Payroll and crediting Cash when payroll checks drawn against a payroll checking account are issued.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please write TRUE if the statement is True. And if FALSE, WRITE THE CORRECT STATEMENT.
Transcribed Image Text:1. In ideal circumstances, each payroll check is delivered personally to the
employee who signs a receipt for it.
2. The amount of income taxes withheld from employee gross pay is an
expense to the employer.
3. An entry is made debiting Accrued Payroll and crediting Cash when
payroll checks drawn against a payroll checking account are issued.
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