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.

---

Definitions:

Rubric

A set of guidelines or criteria used to evaluate or score performance, products, or responses in a consistent and standardized manner.

Critical Thinking

The intellectual discipline of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from, or generated by, observation, experience, reflection, reasoning, or communication.

Analytical

Pertaining to the systematic examination and evaluation of data or information, often by breaking it into its component parts to uncover their interrelationships.

Destructive

Causing great and irreparable harm or damage.