Candy Cane's Ice Cream Shop,which Opened in June,is a Local

question 113

Multiple Choice

Candy Cane's ice cream shop,which opened in June,is a local hit.In July,Candy Cane hired a new employee at a rate of $1,200 per month to start work at the beginning of August.In July,Candy Cane should record:

• A)nothing,because an exchange of promises is not a transaction.
• B)a $1,200 increase to Prepaid Wages and a $1,200 decrease to Cash.
• C)a $1,200 increase to Wage Expense and a $1,200 decrease to Cash.
• D)a $1,200 increase in Wages Payable and a $1,200 increase in Wages Expense.

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Definitions:

Marketer's Statement

A declaration or assertion made by a marketer, typically aiming to highlight the benefits, value, or unique features of a product or service.

Price

The amount of money expected, required, or given in payment for something.

Product

An item or service created through a process and offered to the market to satisfy a need or want.

Porter

Refers to Michael E. Porter, a prominent figure in economics and business strategy, known for his theories on competition and the value chain.