The Total Payroll Is $4,000 Per Day of Work

question 150

Multiple Choice

The total payroll is $4,000 per day of work.If the accounting period ends on Friday of a given week,what entry must be made to the company's accounting records?

• A)Decrease Cash by $20,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
• B)Increase Salaries payable by $20,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
• C)Increase Salaries payable by $20,000 and increase shareholders' equity by recognizing Salaries expense for the same amount.
• D)Decrease Cash by $4,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.

---

Definitions:

Bowed-Out

Describes a production possibilities curve that is concave from the origin, indicating increasing opportunity costs.

Opportunity Costs

The cost associated with an alternative that is foregone when a particular decision or action is taken.

Manufacturers

Manufacturers are entities engaged in the industrial production of goods from raw materials through the use of machinery and labor.

Market

A place or mechanism where buyers and sellers converge to trade goods, services, or resources.