A Payment to an Employee in Settlement of Salaries Payable

question 55

True/False

A payment to an employee in settlement of salaries payable decreases an asset and decreases equity.

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Definitions:

Utilization

Actual output as a percent of design capacity.

Units

Standard quantities used in measurement that serve as reference points for describing the magnitude of attributes.

Process Time

The time to produce a unit (or specified batch of units) at a workstation.

Cycle Time

The maximum time that a product is allowed at each workstation.