Pattie's Event Planning Service Has Just Prepared the Unadjusted Trial

question 70

Multiple Choice

Pattie's Event Planning Service has just prepared the unadjusted trial balance, which shows the following balances: Salary expense: Debit $6 000 Service revenues: Credit $20 000 Interest expense: 0
Pattie's salaries are $2 000 per week and are paid out at the end of the day on Fridays. The end of the month falls on a Thursday. Pattie will make the appropriate accrual adjustment and post to the ledger. The final adjusted balance of Salary payable, as shown on the adjusted trial balance, will be a:

• A)debit balance of $3 600.
• B)credit balance of $1 600.
• C)credit balance of $400.
• D)credit balance of $3 600.

Understand the composition and importance of quick assets in financial analysis.

Grasp the concept and calculation of the cost of goods sold and its impact on a company's gross profit.

Learn about the inventory management processes including the calculation of merchandise available for sale.

Distinguish between periodic and perpetual inventory systems and their impact on inventory management.

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Definitions:

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