A Factory Urgently Needs to Hire Some Workers

question 119

Multiple Choice

A factory urgently needs to hire some workers.The factory owner is willing to pay a wage of $15 per hour to responsible workers and is unwilling to hire workers who require constant monitoring.On average,he expects five out of the ten workers who have come for the interview to be sincere.How much should he offer to pay the workers he hires?

• A) $15 per hour
• B) $7.50 per hour
• C) $10 per hour
• D) $8 per hour

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Definitions:

Accrued Interest Expense

The amount of interest that has been incurred but not yet paid during a particular period.

Adjustments

Entries made in accounting records to correct errors or allocate revenues and expenses to the appropriate accounting period.

Depreciation

The procedure of distributing the cost of a solid asset over the time it is considered useful.

Accrual Basis

A system in bookkeeping where earnings and expenses are documented at the point of transaction, not necessarily when cash exchanges hands.