The Adjusting Entry at the End of an Accounting Period

question 100

Multiple Choice

The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for work provided is:

• A)Debit Unpaid Salaries and credit Salaries Payable.
• B)Debit Salaries Payable and credit Salaries Expense.
• C)Debit Salaries Expense and credit Cash.
• D)Debit Salaries Expense and credit Salaries Payable.
• E)Debit Cash and credit Salaries Expense.

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Definitions:

Gross Profit

The difference between sales and the cost of goods sold, representing the fundamental earning efficiency of a company's core activities.

Payroll Expense

The total amount of money a business pays to its employees as wages or salaries, including taxes and benefits, for a specific period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.

Rate of Return on Investment

A measure of the profitability or efficiency of an investment, calculated as the ratio of net profits to the initial cost of the investment.