Wages Are $37,500 Per Week for a Five-Day Workweek, Ending

question 27

Multiple Choice

Wages are $37,500 per week for a five-day workweek, ending on Friday. The last payday of the year was Friday, June 26. Which of the following is correct for the reversing entry on July 1?

• A) credit Salaries Payable for $15,000
• B) debit Salaries Payable for $37,500
• C) debit Salaries Expense for $15,000
• D) credit Salaries Expense for $15,000

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Definitions:

Concentration Ratio

is a measure used to determine the market share of the largest firms within an industry, indicating the degree of market control and competition.

Herfindahl Index

An index reflecting the scale of companies compared to the entire sector and a sign of the level of competitive activity present.

Pure Monopolist

A market structure where a single firm is the sole producer and seller of a product or service without close substitutes, giving it significant market power.

Market Shares

The percentage of an industry's total sales that is earned by a particular company over a specified time period, indicating the company's size or presence in the market.