Employees of Robert Rogers,CPA Worked During the Last Two Weeks

question 159

Multiple Choice

Employees of Robert Rogers,CPA worked during the last two weeks of December.They received their paychecks on January 2.The matching principle would require that which of the following accounts appear on the balance sheet for December 31?

• A) Accounts payable
• B) Salaries payable
• C) Salary expense
• D) Prepaid expense

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Definitions:

Identifiable Net Assets (INA) Method

A valuation method in mergers and acquisitions that calculates the fair value of a company's net assets, excluding goodwill.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, representing items like brand name, good customer relations, and reputation.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing what the shareholders own outright.

Consolidated Balance Sheet

A financial statement that aggregates the financial position of a parent company and its subsidiaries, showing total assets minus liabilities.