Question

Name the accounting information sub-system which deals with payment of wages and salaries of employees.

• A. Costing sub-system
• B. Expense accounting sub-system
• C. Payroll accounting sub-system
• D. Tax accounting sub-system

Hint:

This sub-system helps reduce manual errors in payroll management and ensures compliance with legal regulations.

Answer 1

The Correct Option is C

The Payroll Accounting Sub-system manages employee compensation, including wages, salaries, bonuses, deductions, and net pay. It automates salary calculations, statutory compliance (PF, ESI), and maintains records, reducing errors and ensuring timely payments. % Quick tip