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.
Reference:
GAAP Accounting Standards - Payroll Tax Liability Reconciliation
Payroll.org - Best Practices for Payroll Tax Account Reconciliation