BJ, an Employee of Walker Corp $\begin{array} { l }\text { Salaries Expense}&800 \\ \text {Salaries Payable }&&800 \\\end{array}$

question 36

Multiple Choice

BJ, an employee of Walker Corp., will not receive her paycheck until April 2.Based on services performed from March 15 to March 30, her salary was $800.The adjusting entry for Walker Corp.on March 31 is

• A) \(\begin{array} { l }\text { Salaries Expense}&800 \\
• \text {Salaries Payable }&&800 \\\end{array}\)
• B)\(\begin{array} { l }\text { No entry is required. }& \\\end{array}\)
• C) \(\begin{array} { l }\text { Salaries Expense }&800 \\
• \text {Cash }&&800 \\\end{array}\)
• D) \(\begin{array} { l }\text { Salaries Payable }&800 \\
• \text {Cash }&&800 \\
• \end{array}\)

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Definitions:

Operating Leverage

A gauge of the relationship between sales growth and the growth of operational earnings, showing the mix of fixed and variable costs within a business.

Financial Leverage

The use of borrowed funds to finance investments, aiming to increase the potential return to equity holders.

Business Risk

The exposure a company or investor faces from uncertainties that may impact its operations and profitability.

Financial Risk

The possibility of losing money or financial assets due to factors affecting financial markets, investment decisions, or company performance.