Cash account is primarily affected by which transactions in the payroll and personnel cycle?
A) Payment of salaries
B) Payment of payroll tax
C) Both A and B
D) None of the above

Question

Quizplus · Accepted Answer

Both payment of salaries and payment of payroll tax affect the cash account in the payroll and personnel cycle. Payment of salaries decreases the cash account as funds are disbursed to employees while payment of payroll tax decreases the cash account as funds are sent to government agencies.

Cash Account Is Primarily Affected by Which Transactions in the Payroll