An Adjusting Entry That Credits Salaries Payable Is an Example

question 41

Multiple Choice

An adjusting entry that credits Salaries payable is an example of a(n) :

• A) accrued expense.
• B) unearned revenue.
• C) accrued revenue.
• D) prepaid expense.

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained rather than paid out as dividends to shareholders.

Closing Entries

The journal entries that transfer the balances of temporary accounts to permanent accounts at the end of the accounting period.

Financial Loss

A decrease in net income resulting from expenses exceeding revenues or due to asset devaluation, not typical of the company's usual business operations.

Stockholder

A person, company, or institution that owns at least one share of a company's stock, making them a partial owner of that company.