The Employees of Dew Drop Inn Get Paid Every Friday

question 167

Multiple Choice

The employees of Dew Drop Inn get paid every Friday for a 5-day workweek (Monday through Friday) .The total payroll is $5,000 per day of work.If the accounting period ends on Thursday of a given week,and the proper adjustment is made on Thursday,what will be the effect of the adjustment on the company's financial statements?

• A)The balance sheet will report Salaries payable of $20,000.
• B)The income statement will report additional salaries expense of $25,000.
• C)The balance sheet will report additional salaries expense of $20,000.
• D)The income statement will report Salaries payable of $20,000.

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Definitions:

Negligent

Failing to exercise a level of care that a reasonably prudent person would, resulting in harm or damage.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the laws of sales and other commercial transactions across state lines.

Recover Damages

The action of obtaining compensation through legal means for loss or injury.

Design Defect

A flaw in the planned design of a product, making it inherently unsafe for its intended or reasonably foreseeable use.