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

question 103

Multiple Choice

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

• A)Decrease Cash by $12,000 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 $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:

Car Door

A movable barrier used for entry and exit, as well as security and protection of the occupants, found on the sides of automobiles.

Dentoalveolar Joint

A term that could describe the structural and functional relationship between teeth (dentition) and the alveolar bone, but not a commonly used term. More accurately referred to as the periodontal ligament.

Cervical Region

The upper part of the spine, consisting of the first seven vertebrae that form the neck.

Parietal Bones

Two bones forming the sides and roof of the cranium, each positioned on either side of the skull just behind the frontal bone.