Expenses Sometimes Make Their Contribution to Revenue in a Different

question 74

Multiple Choice

Expenses sometimes make their contribution to revenue in a different period than when they are paid. When salaries and wages are incurred in one period and paid in the next period this often leads to which account appearing on the balance sheet at the end of the time period?

• A) Due from Employees.
• B) Due to Employer.
• C) Salaries and Wages Payable.
• D) Salaries and Wages Expense.

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Definitions:

Status Quo Bias

A cognitive bias that favors existing conditions or states of affairs, leading individuals to resist change.

Omission Bias

The tendency to judge harmful actions as worse, or less moral, than equally harmful omissions (inactions).

Decision Avoidance

The phenomenon where an individual or group deliberately chooses not to make a decision, often to avoid responsibility or negative outcomes.

Certainty Effect

The tendency for people to overweight outcomes that are certain relative to outcomes that are merely probable.