In 2011, Milford Corporation Determined That It Overstated Salaries Payable

question 6

Multiple Choice

In 2011, Milford Corporation determined that it overstated salaries payable and salaries expense by $20,000 in 2010.In 2011, which of the following accounts will have to be credited to correct this error?

• A)Salaries Payable.
• B)Salaries Expense.
• C)Retained Earnings.
• D)Income Summary.

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Definitions:

Insurance Dispute

A disagreement between an insurance provider and a policyholder regarding the coverage or compensation terms of an insurance policy.

Commercial General Liability Policy

An insurance policy designed to provide coverage to businesses for bodily injury, personal injury, and property damage caused by the business’s operations or products.

Personal Injury Suits

Legal actions initiated by individuals seeking compensation for injuries they have suffered due to someone else's negligence or wrongdoing.

Insurance Duty

Obligations borne by an insurance company, including the duty to defend, settle, and indemnify insured parties as outlined in the insurance policy.