Assume That No Reversing Entries Are Made by This Firm

question 20

Multiple Choice

Assume that no reversing entries are made by this firm. If wages of $11 200 were accrued by it at the end of the year and the first payment of wages in the subsequent year was $101 600 how would this payment be recorded?

• A) Debit salaries payable $11 200; debit salaries expense $90 400; credit cash $101 600
• B) Credit salaries payable $11 200; debit salaries expense $112 800; credit cash $101 600
• C) Debit salaries payable $11 200; debit salaries expense $101 600; credit cash $112 800
• D) Debit salaries expense $90 400; credit cash $90 400

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Definitions:

IQ

Intelligence quotient, a measure of a person's intellectual abilities in relation to the average performance of others in their age group.

Sternberg's Triarchic Theory

A theory of intelligence proposing that human intelligence comprises three aspects: analytical, creative, and practical.

Creative Intelligence

Involves the ability to deal with new and different concepts and to come up with innovative solutions to problems.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability of an age group, irrespective of the person's chronological age.