The Adjusting Entry at the End of an Accounting Period

question 100

Multiple Choice

The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for work provided is:

• A)Debit Unpaid Salaries and credit Salaries Payable.
• B)Debit Salaries Payable and credit Salaries Expense.
• C)Debit Salaries Expense and credit Cash.
• D)Debit Salaries Expense and credit Salaries Payable.
• E)Debit Cash and credit Salaries Expense.

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Definitions:

Expected Profits

Anticipated earnings calculated based on projected revenues, costs, and market conditions.

Interest Rate

The percentage of an amount of money charged for its use over a specified period, often annually, by lenders to borrowers.

Shareholder

An individual or entity that owns one or more shares of stock in a publicly-traded company, making them partial owners.

Firm's Profits

The financial gains a firm obtains after deducting all expenses, taxes, and costs from its total revenues.