FPC-Remote Exam Dumps : Fundamental Payroll Certification

Comprehensive and Detailed Explanation:To finddiscrepanciesin a general ledger, the following documents should be reviewed:

General Ledger Account Details (A)– To track postings and adjustments.

Bank Account Statements (B)– To ensure transactions reconcile with payroll expenses.

Payroll Register Totals (C)– To comparewages and tax liabilitiesagainst general ledger accounts.

Option D (Copies of Paychecks) is incorrectbecause physical paycheck copiesdo not verify account balances or identify out-of-balance errors.

Comprehensive and Detailed Explanation:In accounting, anormal balancerefers to theside (debit or credit) that increases the account balance.

Assets (Option A) normally have a debit balancebecause they representresources owned by the company(cash, accounts receivable, equipment, etc.).

Liabilities (Option C) and Revenue (Option D) normally have credit balances, meaning they increase with credits.

Capital (Option B) also has a normal credit balance, as it representsowner’s equity.

Comprehensive and Detailed Explanation:Acredit balancemeans an accountnormally holds a liability or revenue amount.

Accounts Payable (Option A)representsamounts owedto vendors, which is aliability accountandnormally has a credit balance.

Option B (Cash)is incorrect because cash is anasset accountandtypically has a debit balance.

Option C (Office Equipment)is incorrect because it is afixed assetand alsohas a debit balance.

Option D (Prepaid Expenses)is incorrect because prepaid expenses areassetsthat aredebited when paid.