Which of the Following Shows How a Payment Made to Settle

question 29

Multiple Choice

Which of the following shows how a payment made to settle an accrued expense, such as the salaries payable, will affect a company's financial statements?
A. $\quad - \quad\quad\quad - \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text{-FA}$
B. $\quad - \quad\quad\quad - \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad$
C. $\quad - \quad\quad\quad - \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text{-QA}$
D. $\quad - \quad\quad\quad - \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text{-IA}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Subscriptions Receivable

An amount owed by customers for subscription services or products that have been provided but not yet paid for.

Paid-in Capital

Paid-in capital is the amount of money that a company has received from shareholders in exchange for shares of stock, reflecting the capital that has been invested in the company beyond its par value.

Common Stock Subscribed

A commitment by investors to purchase shares of a company's common stock, where the shares are reserved for the subscribers until payment is made.

Dividends in Arrears

Dividends on preferred shares that have not been paid in the scheduled time, accruing until they are paid out.