A Company Pays Its Workforce on Fridays for a Five

question 16

Multiple Choice

A company pays its workforce on Fridays for a five day workweek.The payroll for a week is $100,000.If the accounting year-end falls on a Tuesday,the adjusting journal entry to record this will include a

• A)debit to Salaries Expense $100,000.
• B)debit to Salaries Expense $40,000.
• C)credit to Salaries Payable $60,000.
• D)credit to Salaries Payable $100,000.

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Definitions:

Resource Allocation

The process of assigning and distributing available resources to various uses in the most efficient way.

Innovation

The process of creating new products, processes, or ideas that bring value to society, businesses, or individuals.

Central Planning

An economic system where the government makes all decisions on the production and allocation of goods and services.

Economic Profitability

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial success and viability of a venture.