Which Accounts Are Used in the Adjusting Entry to Record

question 51

Multiple Choice

Which accounts are used in the adjusting entry to record salaries owed to employees,but not paid until the next accounting period?

• A)Salaries Expense and Salaries Payable
• B)Unearned Salaries and Salaries Payable
• C)Salaries Payable and Deferred Salaries Expense
• D)Deferred Salaries Payable and Salaries Receivable

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Definitions:

Matching Principle

The accounting concept that expenses should be recognized in the same period as the revenues they helped to generate.

Temporary Differences

Differences between taxable income and accounting income that are only for a limited period and will reverse in the future.

Depreciable Assets

Assets subject to depreciation, which entails allocating the cost of tangible assets over their useful lives to account for wear and tear.

Deferred Tax Liability Balance

An accounting term for taxes that are owed but not yet paid, a result of temporary differences between the tax basis of assets or liabilities and their carrying amount in the financial statements.