In Recording the Monthly Adjusting Entry for Accrued Wages at the End

question 62

Multiple Choice

In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by:

• A) collecting the timesheets for the days accrued.
• B) using the same amount as the prior month's adjustment.
• C) using the wages of the salaried workers only.
• D) a percentage of the previous week's gross payroll.
• E) a percentage of the previous week's net payroll.

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Definitions:

Bank Reconciliation

The act of reconciling the cash account balances recorded in an organization's bookkeeping with the related data found on a bank statement.

Deposits in Transit

Funds that have been received and recorded by a business but not yet processed by the bank.

Service Charges

Fees charged to customers for specific services or as penalties for not meeting certain criteria such as minimum account balance requirements.

Internal Control Procedure

Processes undertaken by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.