Employees Have Worked for the Full Year and Have Received

question 37

Multiple Choice

Employees have worked for the full year and have received total wages of $306,000 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 $5,500.Wages expense in the statement of financial performance and accrued wages in the statement of financial position are respectively:

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

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Definitions:

Equity Method

Accounting for investments with significant influence, where the investment's carrying amount is adjusted for the investor's share of the investee's profits or losses.

Small Acquisitions

Refers to the purchase of smaller companies, typically involving less financial risk and a simpler integration process compared to larger mergers and acquisitions.

Consolidated Net Income

The total earnings of a company and its subsidiaries after taxes and interest, adjusted for minority interests.

Non-Controlling Interest

A minority stake in a subsidiary that is not owned by the parent company, reflected as a separate component of equity in the consolidated financial statements.