APA Exam FPC-Remote Topic 5 Question 10 Discussion

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