Danielsen Inc

question 130

Multiple Choice

Danielsen Inc. had salaries payable of $70,000 as of January 1 and $30,000 as of December 31. During the year, Danielsen showed $550,000 in salaries expense on the income statement. Cash outflows for salaries for the year were ________.

• A) $510,000
• B) $550,000
• C) $590,000
• D) $620,000

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Definitions:

Private Property Rights

Legal entitlements that grant individuals or entities exclusive use, control, and disposal of properties and assets.

Wealth Creating

The process of generating financial gain through investment, business ventures, or other methods that increase an individual's or entity's assets.

Capitalism

An economic system characterized by private ownership of the means of production and the creation of goods or services for profit.

Self-Interest

The motivation of individuals to pursue their own advantages and well-being.