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.

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Definitions:

Settlor's Death

The event of the death of an individual who has established a trust, potentially triggering changes in the management or distribution of the trust's assets.

Spendthrift Trust

A type of trust that is created to prevent the beneficiary's assets from being squandered or from being claimed by creditors by providing restricted access to the trust assets.

Personal Representative

An individual appointed to administer the estate of a deceased person.

Executor

A person appointed by a testator to serve as a personal representative on the testator’s death.