A Merchandising Company Using a Perpetual System May Record an Adjusting

question 226

Multiple Choice

A merchandising company using a perpetual system may record an adjusting entry by

• A) debiting Income Summary.
• B) crediting Income Summary.
• C) debiting Cost of Goods Sold.
• D) debiting Sales Revenue.

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Definitions:

Labor Demand

The total amount of workers that employers are willing and able to hire at a given wage rate within an economy.

Compensating Differentials

Wage differentials that arise to compensate workers for the desirability or undesirability of a job's characteristics.

Job Characteristics

Encompass the attributes, roles, responsibilities, and overall environment of a particular job that influence the job holder's motivation and satisfaction levels.

Human Capital

Human capital refers to the set of skills, knowledge, abilities, and attributes embodied in individuals that can be utilized to create economic value.