Which document lists the total payroll expenses and liabilities for a period, including wages payable?

• A. Income statement
• B. Payroll register
• C. Balance sheet
• D. Cash flow statement

Answer: (B)

When you’re tracking payroll for a period, you want a document that sums up what was paid and what is still owed related to payroll. The payroll register does exactly that. It captures each employee’s gross pay, deductions, and net pay for the period, and it aggregates the totals for payroll expenses (the cost of wages and employer payroll taxes) as well as the liabilities that arise from payroll—such as amounts owed to employees (wages payable) and other payroll taxes. This makes it the go-to record for understanding both the total payroll cost and the related obligations for a given period.

The other documents serve different purposes. An income statement shows payroll expenses for the period but not the accompanying liabilities. A balance sheet lists current assets, liabilities, and equity at a point in time, including wages payable, but it doesn’t present the period’s total payroll expense. A cash flow statement shows how cash moved due to payroll activities, but not the consolidated payroll expense and liabilities for the period in one place.