A Company Pays an Employee $1,000 Per Week for a Five

question 148

Multiple Choice

A company pays an employee $1,000 per week for a five day work week. The adjusting entry on December 31, which is a Tuesday, is a:

• A)debit to Salaries Expense for $1,000 and a credit to Salaries Payable for $1,000.
• B)debit to Salaries Expense for $500 and a credit to Salaries Payable for $500.
• C)debit to Salaries Expense for $400 and a credit to Salaries Payable for $400.
• D)debit to Salaries Payable for $1,000 and a credit to Salaries Expense for $1,000.

Determine the impact of depreciation changes on net after-tax income using tax and accounting principles.

Identify the components included in annual financial statements.

Calculate the after-tax return on investments given tax rates.

Determine the Return on Invested Capital (ROIC) from financial data.

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Definitions:

Common Stock

Equity securities representing ownership in a company, entitling holders to vote on corporate matters and receive dividends.

Deferred Tax Liability

A tax obligation that a company owes in the future due to temporary differences between its financial accounting and tax accounting practices.

Indirect Method

A method used in cash flow statements to adjust net income for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.