The Correct Cutoff and Valuation of Accrued Salaries and Wages

question 3

Multiple Choice

The correct cutoff and valuation of accrued salaries and wages

• A)is to calculate the exact hours of pay that were earned in the current period and paid in a subsequent period.
• B)is to compute an approximate proportion of the wages that were earned in the current period and use that amount as the accrual.
• C)allows the client to choose between A and B (above)each year.
• D)depends on company policy and whether it is consistently followed.

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Definitions:

Software Package

A collection of software programs and documentation related to a specific application or utility for distribution.

Scope Creep

The process by which a project's requirements increase over its lifecycle, typically leading to delays and cost overruns.

Prewritten Application

Software or program that is developed for sale or distribution to multiple users, designed to perform specific tasks or functions.

Prewritten Applications

Software products that are developed and available for sale to the general public without the need for customization.