The Adjustment for Wages Earned, but Not Yet Paid Is

question 34

Multiple Choice

The adjustment for wages earned, but not yet paid is:

• A) Debit Wages Expense, credit Cash.
• B) Debit Wages Payable, credit Wages Expense.
• C) Debit Wages Payable, credit Cash.
• D) Debit Wages Expense, credit Wages Payable.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, representing the ownership interest of shareholders.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividend payment preferences.

Par Value

The stated face value of a bond or the nominal value of a stock, unrelated to its market price.

Paid-in Capital

The sum of funds a business has obtained from its stockholders by selling them stock shares.