Powers Company Accrued Unpaid Wages of $3,000 on January 31

question 158

Multiple Choice

Powers Company accrued unpaid wages of $3,000 on January 31. These wages will be included in paychecks totaling $9,000 on February 2. The reversing entry will include a ________.

• A) credit to Cash for $3,000
• B) debit to Wages Payable for $9,000
• C) debit to Wages Expense for $9,000
• D) credit to Wages Expense for $3,000

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Definitions:

Production Possibilities

The various combinations of goods and services that an economy can produce when all its resources are fully and efficiently employed, illustrated by the production possibilities frontier.

Capital Goods

Assets utilized by businesses to create wealth through the manufacturing of goods and services, including buildings and tools.

Opportunity Cost

The sacrifice of potential rewards from different possibilities upon opting for one alternative.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with given resources and technology.