The Account "Salaries Expense" Began with a Zero Balance and Then

question 61

Multiple Choice

The account "Salaries Expense" began with a zero balance and then had the following changes: increase of $450,decrease of $175,increase of $600,and an increase of $350.The final balance is a:

• A)credit balance of $1,225.
• B)debit balance of $1,225.
• C)credit balance of $1,575.
• D)debit balance of $1,575.

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Definitions:

Excess Capacity

Excess capacity refers to a situation where a company is operating below its maximum output level, indicating that it can produce more with the current resources if there is higher demand.

Expansionary Fiscal Policy

To fight recessions, the federal government lowers taxes and/or raises spending.

Government Spending

Expenditures made by the government of a country on collective needs and wants such as infrastructure, public safety, education, and healthcare.

Public Debt

Money that is owed by a government to creditors within the country or externally, arising from borrowing to finance expenditures exceeding tax revenues.