Which of the Following Statements Is Correct Regarding the Adjustment

question 3

Multiple Choice

Which of the following statements is correct regarding the adjustment for salaries and wages accrued but not paid at the end of the accounting period?

• A)Salaries and Wages Payable will decrease by the amount of the unpaid wages.
• B)Salaries and Wages Expense will be recorded as a credit for the amount of the unpaid salaries and wages.
• C)Salaries and Wages Payable will be recorded as a debit for the amount of the unpaid salaries and wages.
• D)Salaries and Wages Expense will increase by the amount of the unpaid salaries and wages.

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Definitions:

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity can dictate prices, leading to optimal resource allocation.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.

Marginal Cost

The addition to total expenses resulting from the production of one more unit of a product or service.

Price-taker Market

A market condition where individual sellers or buyers cannot influence the price of goods or services and must accept the prevailing market price.