When a Firm Has Wages Earned but Not Yet Paid

question 57

Multiple Choice

When a firm has wages earned but not yet paid at the end of a financial reporting period,what must it do to recognize the liabilities and expenses?

• A)It must credit the asset accounts for the appropriate payroll amounts.
• B)It must pay its employees for the wages earned as of that date.
• C)It must wait until the next financial period to record the payroll data.
• D)It must create an adjusting entry to recognize the payroll accrual.

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Definitions:

Non-verbal Communication

Communication without words, including gestures, body language, facial expressions, and eye contact.

Direct Supervisors

Immediate superiors who manage employees on a day-to-day basis, overseeing their work and providing feedback, guidance, and support.

Mum Effect

The tendency to avoid communicating unfavorable news to others due to fear of the negative consequences associated with the disclosure.

Encode

The process of converting ideas and thoughts into a communicable form, such as speech, writing, gestures, or another mode of expression.