During 2014,the First Year of Operations,Silver,Inc

question 43

Multiple Choice

During 2014,the first year of operations,Silver,Inc. ,pays salaries of $175,000.At the end of the year,employees have earned salaries of $20,000,which are not paid by Silver until early in 2015.What is the amount of the deduction for salary expense?

• A)If Silver uses the cash method,$175,000 in 2014 and $0 in 2015.
• B)If Silver uses the cash method,$0 in 2014 and $195,000 in 2015.
• C)If Silver uses the accrual method,$175,000 in 2014 and $20,000 in 2015.
• D)If Silver uses the accrual method,$195,000 in 2014 and $0 in 2015.
• E)None of the above is correct.

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Definitions:

Pectoralis Major

A large muscle in the chest that, when contracted, causes the arm to move across the body.

Upper Back

The region of the back that extends from the base of the neck to the bottom of the ribcage, involving several muscles and the thoracic spine.

Trapezius

A large superficial muscle that extends from the occipital bone to the lower thoracic vertebrae and to the scapula, functioning to move the shoulder blade and support the arm.

Levator Scapulae

A skeletal muscle situated at the back and side of the neck, responsible for elevating the scapula (shoulder blade).