If an Adjusting Entry Is Made on the Last Day

question 7

Multiple Choice

If an adjusting entry is made on the last day of the current accounting period by debiting Wages Expense and crediting Wages Payable for accrued wages earned but not yet paid, a reversing entry on the first day of the next accounting period will

• A) debit Wages Expense and credit Wages Payable.
• B) debit Cash and credit Wages Expense.
• C) debit Miscellaneous Expense and credit Wages Expense.
• D) debit Wages Payable and credit Wages Expense.

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Definitions:

Attainable

Referring to a goal or objective that can be reached or achieved, especially through effort or strategy.

Per-Worker Production Function

A graphical representation that shows the relationship between the amount of output produced per worker and the amount of capital available per worker.

Shape

The external form or appearance of an object, defined by its outline or surface configuration.

Diminishing Marginal Returns to Labor

A principle stating that if the amount of a variable resource (such as labor) increases while other factors are fixed, the additional output generated by the additional input will eventually decrease.