Employees Have Worked for the Full Year and Have Received

question 24

Multiple Choice

Employees have worked for the full year and have received total wages of $305,000 in cash. However, they must wait until the next payday to be paid for the last three days of the year they have worked. The amount owing is $6,500. Wages expense in the statement of financial performance and accrued wages in the statement of financial position are respectively:

• A)$311,500 and $6,500.
• B)$306,000 and $5,500.
• C)$306,000 and $0.
• D)$311,500 and $0.

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Definitions:

Profit Maximizing

The process or strategy by which a firm adjusts its production to achieve the highest possible profit.

Price Elasticity

An assessment of the degree to which the demand for a commodity adjusts when its price changes.

Output Level

The quantity of goods or services produced by a firm or economy over a certain period.

Marginal Revenue

The additional revenue a firm receives from selling one more unit of a product or service.