Total Payroll for a Given Week Is $24,000

question 39

Multiple Choice

Total payroll for a given week is $24,000.If 70 percent of the company's employees typically qualify to receive two weeks' paid vacation per year,assuming 50 working weeks,the entry to record the estimated liability for vacation pay for the week is:

• A) Estimated Liability for Vacation Pay 1,680
• Cash 1,680
• B) Vacation Pay Expense 960
• Cash 960
• C) Vacation Pay Expense 672
• Estimated Liability for Vacation Pay 672
• D) Cash 336
• Estimated Liability for Vacation Pay 336

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Definitions:

Employer Duties

Refers to the responsibilities and obligations an employer has towards their employees, including providing a safe working environment and paying wages.

Securities Act

Legislation enacted to ensure more transparency in financial statements so investors can make informed decisions about investments.

Exchange Commission

A regulatory body responsible for overseeing and regulating securities exchanges to protect investors and ensure fair, efficient, and transparent markets.

Tombstone Advertisement

A print advertisement in a format similar to that of a tombstone that announces a forthcoming sale of securities.