Assume That an Employee Works and Earns $100, but Has

question 35

Multiple Choice

Assume that an employee works and earns $100, but has not yet been paid when the accounting period ends. Under accrual accounting, the books should reflect

• A) Nothing, since the employee has not yet been paid
• B) A liability of $100 and a revenue of $100
• C) An asset of $100 and an expense of $100
• D) A liability of $100 and an expense of $100

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Definitions:

Highest Levels

Refers to the utmost degree or maximum extent of a particular measure or scale.

Social Facilitation

The tendency for individuals to perform better on simple or well-learned tasks in the presence of others.

Simple Tasks

Tasks that require a minimal cognitive load and can be performed with little to no mental effort, often involving routine actions or straightforward instructions.

Collective Tasks

Activities or responsibilities that require the cooperative effort and participation of a group of individuals to achieve a common goal.