In Recording Wages for the Month a Bookkeeper Records a Debit

question 29

Multiple Choice

In recording wages for the month a bookkeeper records a debit entry to the account Sales instead of a debit to Wages Expense.This error will result in:

• A)an overstatement of sales for the period.
• B)no effect on profit for the period.
• C)an understatement of assets at the end of the period.
• D)an understatement of equity at the end of the period.

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Definitions:

Nonfinancial Reward

Incentives or benefits given to employees or individuals that are not monetary, such as recognition or professional growth opportunities.

Sales Contest

A short-term incentive designed to elicit a specific response from the sales force.

Bonus

A payment made at management’s discretion when the salesperson attains certain goals; usually given only periodically, such as at the end of the year.

Sales Management

Involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force.