The Total Payroll Is $3,000 Per Day of Work

question 174

Multiple Choice

The total payroll is $3,000 per day of work.If the accounting period ends on Thursday of a given week,what adjustment must be made to the company's accounting records?

• A)Increase Salaries payable by $15,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
• B)Increase Salaries payable by $12,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
• C)Decrease Cash by $12,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
• D)No adjustment is necessary because there is no expense until the employees are paid on Friday.

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Definitions:

Job Tasks

Specific duties or responsibilities assigned to an employee as part of their role within an organization.

Maintenance Tasks

Routine and essential activities required to keep machinery, equipment, or a system operating efficiently and effectively.

Flexibility Types

Various classifications of adaptability in an organization, including but not limited to workflow, workforce, and product/service flexibility.

Employee Concerns

Issues or problems raised by employees related to their work environment, job duties, management practices, or workplace relationships.