Omega Company Pays Its Employees Twice a Month, on the 7^th

question 117

Multiple Choice

Omega Company pays its employees twice a month, on the 7^th and the 21^st. On June 21, Omega Company paid employee salaries of $4,000. This transaction would

• A) increase equity by $4,000.
• B) decrease the balance in Salaries and Wages Expense by $4,000.
• C) decrease net income for the month by $4,000.
• D) be recorded by a $4,000 debit to Salaries and Wages Payable and a $4,000 credit to Salaries and Wages Expense.

---

Definitions:

Mediation

A form of alternative dispute resolution where a neutral third party helps disputants come to a consensus on their own.

Arbitration

A method of resolving disputes outside of court where an impartial third party delivers a conclusive judgement to settle a disagreement between parties.

Union-Management Relations

The dynamics and interactions between a company's management team and the labor union that represents its workers, emphasizing negotiation and labor agreements.

Union Instrumentality

The effectiveness and influence of a labor union in representing its members' interests.