Sara, Who Telecommutes and Does Transcription Work from Her Home

question 79

True/False

Sara, who telecommutes and does transcription work from her home, would be best compensated using a piecework system based on the number of lines of transcription she submits each day.

---

Definitions:

Salaries Payable

This is a liability account that records the amount owed to employees for work performed that has not yet been paid.

Liquidation Expense

Costs incurred during the process of winding up a company, including legal, administrative, and sale expenses to dispose of the company's assets.

Unsecured Creditors

Creditors who have extended credit without any specific property (collateral) pledged as security for payment.

Liabilities

Financial obligations or debts a company owes to others, which must be settled over time.