The Adjusting Entry to Record the Earned but Unpaid Salaries

question 116

Multiple Choice

The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is:

• A) Debit Unpaid Salaries and credit Salaries Payable.
• B) Debit Salaries Payable and credit Salaries Expense.
• C) Debit Salaries Expense and credit Cash.
• D) Debit Salaries Expense and credit Salaries Payable.
• E) Debit Cash and credit Salaries Expense.

---

Definitions:

Government's Plan

A systematic arrangement of actions or strategies designed by a government to achieve specific outcomes or objectives.

Softening Economy

A term used to describe an economic state where growth is slowing down, signaling a potential downturn or lesser economic activity.

Government Spending Multiplier

A coefficient that measures the change in total income resulting from a unit change in government spending.

Fiscal Policy

Government policies regarding taxation and spending that are aimed at influencing a country's economic conditions.