At the End of 2015,the Payroll Supervisor for Claro,Inc

question 205

Multiple Choice

At the end of 2015,the payroll supervisor for Claro,Inc.failed to accrue $24,790 in commissions for the outside salespersons.The cost was recorded in 2016 when the commissions were paid and Commissions Expenses was debited and Cash credited for the full amount.The error was not discovered until late in 2016 while reconciling year-end expenses for 2016.What is the proper treatment to correct the error? (Ignore income taxes.)

• A)Do nothing,the error has counterbalanced.
• B)Accrue $24,790 in commission expense for 2016.
• C)Debit 2016 beginning retained earnings and credit commission expense for $24,790.
• D)There is no error in either year because the commissions are recorded when paid.

Recognize the role of punishment strategies and their appropriate application in management.

Understand the influence of environmental factors and reinforcement schedules on behavior and motivation.

Understand the concept and application of negative and positive reinforcement in management.

Recognize the effectiveness of different reinforcement schedules on behavior.

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Definitions:

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, imposing a higher percentage rate on the wealthy.

Income Tax

A tax levied by governments on individuals' or entities' income, used to fund public services and governmental activities.

Taxes

Compulsory financial charges or levies imposed by a government on individuals or entities to fund public expenditures.

Average Tax Rate

The average tax rate is the ratio of the total amount of taxes paid to the total tax base (taxable income or spending), essentially reflecting the percentage of income that goes to taxes.