Journalizing Payroll Transactions a. In what expense account are employees earnings often recorded? b. List the accounts in which the payroll liabilities for federal income tax and Medicare tax are recorded.
Lecture 3 Accounting ● An information system of collecting financial data and making it more useful and getting it into focused info that decision makers can use (decision relevant) ● Uses the outputs from bookkeeping (recording or accounting transactions; bureaucratic process of typing into computer of what’s happening everyday) to make information useful ○ Requires judgment and skills rather than keeping records ● Decision makers within (internal) and outside (external) the firm ○ Financial accounting focuses on external decision makers ■ Investors: successful or unsuccessful products ■ Workforce and unions: get a good rate ■ Governmental bodies ● Managerial accounting: st