The Adjusting Entry to Record the Earned but Unpaid Salaries

question 48

Multiple Choice

The adjusting entry to record the earned but unpaid salaries of employees at the end of the accounting period is:

• A)Debit Salaries Expense and credit Salaries Payable.
• B)Debit Salaries Payable and credit Salaries Expense.
• C)Debit Salaries Expense and credit Cash.
• D)Debit Unpaid Salaries and credit Salaries Payable.
• E)Debit Cash and credit Salaries Expense.

---

Definitions:

Merchandise On Hand

The inventory of goods that a company currently has available for sale.

Operating Expenses

The costs associated with running a company’s day-to-day operations, excluding the cost of goods sold, such as salaries, rent, and utilities.

Net Income

The amount of profit left after all expenses, taxes, and costs have been subtracted from total revenue.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or the business's operating cycle, whichever is longer.