O'Bryan Company Began the Year with a Balance of $18,000

question 116

Multiple Choice

O'Bryan Company began the year with a balance of $18,000 in Salaries and Wages Payable and ended the year with $11,000 in the account.Salaries and Wages Expense for the period amounted to $91,000.Under the direct method,O'Bryan will report cash payments for salaries and wages of

• A)$84,000.
• B)$102,000.
• C)$109,000.
• D)$98,000.

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Definitions:

Depreciation Expense

Breaking down the investment in a solid asset over the time it serves its purpose.

Service Revenue

Income earned by a company for the provision of services to its customers.

Prepaid Expense

An expense that has been paid in advance and recorded as an asset until it becomes an actual expense.

Accrued Revenue

Income earned but not yet received, representing goods or services provided to customers on credit.