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To reconcile a general ledger tax liability account balance, verify all of the following items EXCEPT:
Suggested Answer: A
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Comprehensive and Detailed Explanation:
To properly reconcile payroll tax liability accounts, the following steps are performed:
Compare account entries against payroll registers (C) -- Ensures wages, deductions, and taxes are posted correctly.
Verify checks issued by accounts payable (B) -- Confirms tax payments were made.
Match account activity with quarterly tax returns (D) -- Ensures payroll taxes were reported correctly on Form 941.
Option A (Entries from company accountants) is incorrect because accountants do not create payroll entries; payroll is recorded based on actual payroll transactions, not estimates or adjustments from accountants.
GAAP Accounting Standards -- Payroll Tax Liability Reconciliation
Payroll.org -- Best Practices for Payroll Tax Account Reconciliation
33 comments · newest first
JE
Jesusa
9 months ago
Not sure about C, seems relevant to me.
MA
Matthew
10 months ago
Surprised that payroll entries are even an option!
DO
Doyle
10 months ago
Definitely need to check the quarterly returns!
AL
Alonso
10 months ago
Agree, A is crucial for reconciliation.
ER
Ernie
10 months ago
I think it's B that doesn't belong here.
JA
Janessa
11 months ago
I’m leaning towards saying we don’t need to verify checks issued by accounts payable, but I could be wrong.
LI
Lili
11 months ago
I feel like account entries against the payroll register could be a trick option, but I can't recall if they really matter for this specific account.
KA
Kayleigh
11 months ago
I remember a practice question where we had to check quarterly returns, so that might be important here.
CH
Cheryll
11 months ago
I think we usually verify entries from accountants, but I'm not sure if checks issued are relevant for tax liability.
JU
Julio
11 months ago
Okay, I think I've got it. The key here is to identify the one item that is not necessary to verify when reconciling the tax liability account. Based on the options provided, I'm going to go with option A, entries from company accountants, as the one I don't need to verify.
GE
Georgene
12 months ago
I'm a bit unsure about this one. I know I need to reconcile the tax liability account, but I'm not totally clear on what all the different items are that I need to verify. I'll have to think this through carefully.
MA
Marquetta
12 months ago
Verifying entries from company accountants, checks issued by accounts payable, and account activity against the quarterly returns all seem like important things to check. I'm going to go with option C, account entries against the payroll register, as the one I don't need to verify.
WA
Walker
12 months ago
Okay, I think I've got this. The question is asking me to find the one item that I don't need to verify, so I need to look at the options and figure out which one is the odd one out.
JO
Johnna
1 year ago
This question is asking me to identify the item that I don't need to verify when reconciling a general ledger tax liability account balance. Hmm, let me think this through carefully.
JE
Jeff
1 year ago
Haha, this one's a no-brainer! C is the answer, hands down. I mean, who cares about the payroll register when you've got the whole tax liability account to reconcile? Bring on the quarterly returns!
RE
Ressie
1 year ago
I think you're right, C doesn't really matter in this case.
ZO
Zona
1 year ago
I think it could also be A) Entries from company accountants, as those could impact the tax liability balance.
VE
Veronika
1 year ago
I'm going with B. Checking those accounts payable checks is just asking for trouble. I'd much rather dive into the quarterly returns and let the accountants handle the small stuff.
MA
Martina
1 year ago
I agree with Deeann, because the quarterly returns are crucial for reconciling tax liability.
KE
Kenneth
1 year ago
Definitely C. Who has time to cross-reference the payroll register when you've got juicy tax returns to pore over? That's where the real action is!
LA
Lasandra
1 year ago
I agree, the payroll register seems like a tedious task compared to the excitement of tax returns.
FR
France
1 year ago
Let's make sure we verify all entries from the company accountants.
JO
Jodi
1 year ago
I think we should focus on the quarterly returns for reconciliation.
LA
Laticia
1 year ago
I agree, payroll is not as exciting as tax returns.
DE
Deeann
1 year ago
I disagree, I believe it's D) Account activity against the quarterly returns.
GE
Georgeanna
1 year ago
I'm going with C. Checking the payroll register seems like a waste of time when we've got quarterly returns to validate. It's all about that big picture, you know?
MA
Maricela
1 year ago
Actually, I think checking the payroll register is important too. It's all about making sure every entry matches up.
VE
Veronica
1 year ago
I agree, focusing on the quarterly returns is key to reconciling the tax liability account.
CA
Candra
1 year ago
I think the answer is C) Account entries against the payroll register.
AN
Anastacia
1 year ago
Hmm, I think verifying the account entries against the payroll register is the one we don't need to do. Gotta keep an eye on those pesky accountants, though!
AR
Aretha
1 year ago
Yeah, the payroll register might not be as crucial to reconcile for the tax liability account balance.
VI
Virgina
1 year ago
I think we should also make sure to match the account activity against the quarterly returns.
BU
Bulah
1 year ago
I agree, we definitely need to double check the entries from the accountants.