Which of the following statements about payroll is correct?
A)Payroll deductions are an expense of the company.
B)When recording the payroll,Salaries and Wages Expense equals the sum of all the deductions.
C)The net pay is debited to Salaries and Wages Expense when the payroll is recorded.
D)Gross earnings are computed by multiplying the time worked by the pay rate promised by the employer.

Question

Quizplus · Accepted Answer

Gross earnings are computed by multiplying the time worked by the pay rate promised by the employer.Payroll deductions are amounts subtracted from employees' gross earnings to determine their net pay.When recording the payroll,Salaries and Wages Expense is debited for the gross earnings and Salaries and Wages Payable is credited for the net pay.

Which of the Following Statements About Payroll Is Correct