The Correct Cutoff and Valuation of Accrued Salaries and Wages

question 3

Multiple Choice

The correct cutoff and valuation of accrued salaries and wages

• A)is to calculate the exact hours of pay that were earned in the current period and paid in a subsequent period.
• B)is to compute an approximate proportion of the wages that were earned in the current period and use that amount as the accrual.
• C)allows the client to choose between A and B (above)each year.
• D)depends on company policy and whether it is consistently followed.

---

Definitions:

Client-Professional Privilege

A legal principle that ensures communications between a professional (such as a lawyer) and their client remain confidential.

Confidential Information

Sensitive data that is protected from unauthorized access, use, or disclosure, often in a business context.

Duty of Care

Refers to the legal obligation to exercise a reasonable level of attention and caution to avoid harm to others.

Architects' Skill

The professional expertise and competency that an architect is expected to exhibit in the planning, design, and oversight of a building's construction.