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.

---

Definitions:

Banks and Thrifts

Financial institutions that accept deposits from the public and create credit. Thrifts, such as savings and loan associations, primarily focus on residential mortgage lending.

FDIC

The Federal Deposit Insurance Corporation (FDIC) is a United States government agency created in 1933 to insure deposits in banks and thrift institutions for at least $250,000 per depositor, per insured bank, for each account ownership category.

Deposit Insurance

A guarantee provided typically by a government agency to protect depositor's funds up to a certain amount in the event of a bank failure.

Banking Crisis

A situation in which a large part of the banking sector becomes insolvent, leading to a loss of confidence and potentially a run on banks.