The Adjusting Entry to Record the Earned but Unpaid Salaries

question 116

Multiple Choice

The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period 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:

Utility Function

A representation in economics of how a consumer ranks different goods or bundles of goods.

Interest Rate

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Consumption

The act of using goods and services for personal use, satisfaction, or to fulfill needs, playing a crucial role in economic theories concerning demand and spending.

Utility Function

A mathematical representation that ranks an individual's preferences over a set of goods and services, showing the level of satisfaction or utility those goods or services provide.