The Following Balances Have Been Excerpted from Edwards' Balance Sheets

question 13

Multiple Choice

The following balances have been excerpted from Edwards' balance sheets:

Edwards Company paid or collected during 2011 the following items:

The salary expense on the income statement for 2011 was

• A) $366,500.
• B) $472,500.
• C) $489,500.
• D) $595,500.

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Definitions:

Apportion

To apportion means to divide and distribute according to a plan or formula, often used in the context of allocating expenses among different departments or time periods.

Indirect Expenses

Expenses that are not directly attributable to a specific cost object, such as goods or services, and typically include administrative and marketing expenses.

Arbitrary Methods

Accounting practices based on judgment or preference rather than strict rules or calculations.

Subjective

Based on or influenced by personal feelings, tastes, or opinions, rather than external facts.