Wyatt Company Paid $57,000 in January 2016 for Salaries That

question 114

Short Answer

Wyatt Company paid $57,000 in January 2016 for salaries that had been earned by employees in December 2015.Indicate whether each of the following statements about financial statement effects of the January 2016 event is true or false.
_____ a)The income statement for 2016 is not affected because the salaries expense had been recognized at the end of December in 2015.
_____ b)On the 2016 statement of cash flows,cash flows from operating activities decreased.
_____ c)Payment of the salaries in 2016 increased a liability.
_____ d)The 2016 statement of changes in stockholders' equity would not be affected because the salaries expense had been recognized at the end of December in 2015.
_____ e)Both assets and equity decreased in 2016 as a result of this transaction.

---

Definitions:

Theory Of Constraints

is a management philosophy focusing on identifying and managing the most critical limiting factor (constraint) that stands in the way of achieving a goal.

Constrained Workstations

Work areas within a production process that have limitations or restrictions affecting throughput or output.

Workstation

A specific area or desk equipped with computer and other necessary tools for a person to perform their job tasks.

Process Time

The duration required to complete a specific task or operation within a production or work process.