If at the End of the Year the Firm Owes

question 75

Multiple Choice

If at the end of the year the firm owes a balance for workers' compensation insurance, the adjusting entry includes a

• A)a debit to Payroll Taxes Expense and a credit to cash.
• B)debit to Workers' Compensation Insurance Payable a credit to Workers' Compensation Insurance Expense.
• C)a debit to Workers' Compensation Insurance Expense and a credit to Workers' Compensation Insurance Payable.
• D)a debit to Workers' Compensation Refund Receivable and a credit to Workers' Compensation Insurance Expense.

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Definitions:

Revenue Journal

A specialized accounting journal where a business records its revenue transactions.

Cash Sales

Transactions in which goods or services are exchanged for immediate payment in the form of cash or its equivalents.

Accounting System

An accounting system is a structured process of collecting, recording, summarizing, and reporting financial information of a business.

Customer Type

Categories into which customers are divided based on characteristics, purchasing behaviors, or needs, influencing marketing strategies and sales approaches.