The Adjusting Entry for Wages Earned but Unpaid Results in A(n)________

question 86

Multiple Choice

The adjusting entry for wages earned but unpaid results in a(n) ________.

• A) increase in expenses and an increase in liabilities
• B) increase in expenses and a decrease in liabilities
• C) decrease in expenses and a decrease in liabilities
• D) decrease in expenses and an increase in liabilities

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Definitions:

Wire Transfers

Electronic transfers of funds across a network administered by banks or transfer service agencies globally.

Average Collection Period

The average number of days it takes a company to collect payments from its credit sales.

Credit Sale

A transaction where the payment for the purchased goods or services is deferred to a future date.

Credit Applicant

A Credit Applicant is an individual or business entity that applies for a loan or line of credit from a lending institution.