During 2017, the First Year of Operations, Silver, Inc

question 88

Multiple Choice

During 2017, the first year of operations, Silver, Inc., pays salaries of $175,000. At the end of the year, employees have earned salaries of $20,000, which are not paid by Silver until early in 2018. What is the amount of the deduction for salary expense?

• A) If Silver uses the cash method, $175,000 in 2017 and $0 in 2018.
• B) If Silver uses the cash method, $0 in 2017 and $195,000 in 2018.
• C) If Silver uses the accrual method, $175,000 in 2017 and $20,000 in 2018.
• D) If Silver uses the accrual method, $195,000 in 2017 and $0 in 2018.
• E) None of the above is correct.

Understand the legal steps necessary for a secured party to protect their interest.

Identify the conditions under which bankruptcy impacts secured transactions.

Comprehend the role and requirements of financing statements in secured transactions.

Understand the concepts of purchase-money security interest and its implications for buyers and sellers.

---

Definitions:

Consequences

The results or effects that stem from specific actions, decisions, or policies, which can be positive, negative, or neutral.

Personal Standards

Individual beliefs and values that guide behavior and decisions, often reflecting what one considers important or acceptable.

Obligations and Responsibilities

Duties and liabilities that an individual or entity is required to perform or adhere to.

Property Tax Purposes

For property tax purposes refers to the valuation and assessment of real estate property to determine the amount of property tax owed to local government entities.