Use the Following to Answer Questions

question 208

Multiple Choice

Use the following to answer questions:
Figure: Wage Subsidy
-(Figure: Wage Subsidy) Consider the use of wage subsidies versus the minimum wage. Employment with a wage subsidy is: ________, versus employment with an $8 minimum wage is: ________.

• A) 180; 120
• B) 120; 180
• C) 150; 150
• D) 180; 180

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Definitions:

Adjusting Entries

are journal entries made at the end of an accounting period to adjust income and expense accounts so that they comply with the accrual concept of accounting.

Adjusting Entries

Entries made in journal accounts to correct any discrepancies and ensure that the revenue and expense recognition principles are followed accurately.

Relevant Financial Information

Financial data that is capable of making a difference in business decisions, being timely and having predictive and confirmatory value.

Cash Basis

Cash basis is an accounting method where revenues and expenses are recorded only when cash is received or paid, regardless of when the transactions occurred.