The Employees of Able Company Have Worked the Last Two

question 8

Multiple Choice

The employees of Able Company have worked the last two weeks of 2016,but the employees' wages have not been paid or recorded as of December 31,2016.The adjusting entry that Able should make for these unpaid wages on December 31,2016 is:

• A)debit to Wages Expense and credit to Cash.
• B)debit to Wages Expense and credit to Wages Payable.
• C)debit to Wages Payable and credit to Wages Expense.
• D)no entry is required until the employee is paid next period.

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Definitions:

Foreign Subsidiary

A company owned or controlled by another corporation, person, or entity, based in a country different from the parent company.

Financial Commitments

Obligations to pay money in the future, which can include debts, loans, or other financial responsibilities one has agreed to.

Direct Investment

An investment in the form of a controlling ownership in a business in one country by an entity based in another country, typically by buying the company or establishing new operations.