Salaries Payable on the Balance Sheet Most Likely Means That

question 200

Multiple Choice

Salaries payable on the balance sheet most likely means that ________.

• A)the company is in serious financial difficulty.It doesn't even have enough cash to pay its employees
• B)the company's accountants are seriously confused.Salaries appear on the income statement,not on the balance sheet
• C)employees did not receive payment for the last few days of work because the last day of the accounting period was not a payday
• D)employees were overpaid and now owe the company money

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Definitions:

Office Rent

Office rent refers to the cost incurred for leasing or renting a space used for business operations or as a company's administrative headquarters.

Direct Materials

Raw materials that are directly attributable to the production process and are part of the finished product.

Factory Supplies

Consumable items used in a manufacturing process, excluding raw materials and labor.

Sales Commissions

A portion of the sale amount given to salespersons as a reward for selling products or services.